City of Everett reveals lowest property tax rates in region

During a recent government meeting, city officials discussed the financial outlook for Everett, highlighting key revenue sources and their implications for the 2025 budget. The meeting revealed that Everett homeowners will pay the lowest average property tax in the region at $988 for 2024, which includes a flat annual fire benefit charge of $66.50 where applicable.

Sales tax emerged as the city's second-largest revenue source, projected to contribute $40 million, or 24% of total general government revenues in 2025. The current sales tax rate stands at 9.9%, with a slight increase expected due to growth in sectors such as motor vehicles, sporting goods, and construction. However, officials noted a downturn in the general merchandise retail sector and the impact of global airline market conditions.

The city's Business and Occupation (B&O) tax, unique to Everett in Snohomish County, is anticipated to generate $21.9 million, representing 13% of total revenues. Despite a 4% growth forecast, officials acknowledged that the aerospace sector's struggles post-pandemic heavily influence this revenue stream.

Miscellaneous revenues, primarily from operating transfers and grants, are expected to contribute $18.3 million, while utility taxes from local service providers are projected at $14.7 million, reflecting a 4% growth. The discussion underscored the volatility of these revenue sources, particularly in light of economic cycles and external factors such as inflation and labor strikes.

Council members expressed concerns about the city's reliance on the aerospace industry and the potential risks to revenue forecasts. They emphasized the importance of diversifying the local economy to mitigate these risks. The meeting concluded with a commitment to monitor financial impacts closely and prepare for further discussions during the preliminary budget hearing scheduled for November 6.