Richland council sets 2026 property tax levy, holds city rate flat
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Summary
At its Oct. 21 meeting the Richland City Council approved ordinances setting the 2026 ad valorem property tax levy, choosing a 0% increase while noting valuation growth and rising sales-tax revenue.
RICHLAND — The Richland City Council on Oct. 21 approved two ordinances to set the city’s 2026 ad valorem property tax levy, voting unanimously to keep the city’s proposed levy increase at 0% while relying on valuation growth to maintain revenue.
Finance Director Brandon Allen told the council the ordinances before it work together: one is the formal first reading to set the property-tax amount and the other establishes the levy rate tied to assessed values. He said the city is not proposing the optional 1% increase this year. “The only thing included in property tax increase is just a general new construction increase,” Allen said during his presentation.
Allen told the council the city’s assessed valuation is projected at roughly $2.8 billion for 2026, with new construction expected to add about 2–3% to the tax base. He said retail sales tax growth — driven in part by a recent Costco opening and other retail activity — has boosted overall city revenues so that, for the first time in recent history, retail sales tax is projected to account for a larger share of revenues than property tax. Allen said Richland’s regular levy rate is projected to drop from about $1.76 to $1.73 per $1,000 of assessed value if valuations hold.
Council member Margaret Jones asked whether the city could reduce its levy rate to match neighboring cities; Allen said the simplest way to lower the levy rate under local control is to levy less money (request a smaller dollar amount from the county) but cautioned that municipalities have different revenue mixes and responsibilities that make direct comparisons difficult.
The council voted unanimously to approve ordinances 2025-31 and 2025-32 on first reading; the ordinances advance to a required second reading and additional public hearings in November as part of the budget adoption schedule. Mayor Richardson and council members Jones, Luxon, Meyer, Witten and Van Dyke all voted in favor.
Why it matters: The council’s decision to hold the city’s tentative increase at 0% means homeowners are not facing a city-initiated tax increase for 2026, though individual bills may change depending on countywide valuation shifts and other taxing districts.
What’s next: The council will hold a second reading and public hearing on the ordinances at a subsequent meeting as part of the formal budget-adoption sequence for November.
