Chelan County and Port are close to property tax revenue-sharing deal

Proposed Chelan-Douglas Regional Port Authority Tax Increment Financing District boundary in Malaga.

Chelan County and Chelan-Douglas Regional Port Authority appear close to an Inter local agreement on how property tax revenues will be shared after the port creates a new tax district in Malaga.

It’s how annual property taxes will be shared once the Port takes over taxing authority within the new tax district boundaries.

"We have the ability, in this agreement, to dial back and dial that down," questioned Port CEO Jim Kuntz when discussing the tax rate in the forthcoming Tax Increment Finance (TIF) District.

"Yes, your 1% increase over last years levy, plus new construction, plus state assessed utilities, plus any annexations, " Chelan County Community Development Director Deanna Walter responded. Walter, the former Chelan County Assessor, helped craft the county property tax-sharing proposal.

Within existing property tax revenues, the Port wants to use its portion to ready land for industrial development. The county and junior taxing districts, such as Wenatchee Valley Fire and NCW Libraries, have been vocal about assuring they receive an equitable amount of property tax for public services.

"I feel really encouraged about how this is going," said Chelan County Commissioner Brad Hawkins during a discussion with the Port commissioners on Tuesday. "The thing I'm most excited about, I believe if we can help preserve our relationship, our positive relationship, and the ability to continue to work together closely."

It's expected that the Port will sign off on the interlocal agreement by the end of the week and the county commissioners will consider it at their legislative meeting Jan. 20.

Learn more about the proposed Chelan County Tax Increment Financing District here.