Understanding the MID Assessment Formula
The MID’s assessment formula was updated as part of the 2013 renewal process in an effort to create more transparency and predictability while maintaining previous efforts to ensure different property types are assessed fairly. In addition to a base formula, several “ceilings” come into effect for specific property types. An inflationary factor is applied to most years of the assessments, while property values are updated twice during the ten years using the King County Tax Assessor data.
Annual MID assessments are calculated from a formula prescribed in the MID’s authorizing ordinance that was adopted in May 2013. For the past three years, ratepayers have been assessed according to a property’s 2011 total taxable value (TTV). The ordinance states that in Year 3, the Assessment Formula is to be updated to include a property’s 2015 TTV in the calculation.
In 2016, this adjustment of the formula, combined with new construction and development, led to $9.85m in total MID assessments. Today, total MID assessments represent 0.04 percent of the total taxable value of the Metropolitan Improvement District. Additionally, a growing share of MID ratepayers has reached an assessment ceiling and will likely receive annual adjustments for inflation going forward. New construction and development, which has accounted for a significant share of the MID’s increase in total assessments since 2013/2014, will play an increasingly important role in future MID assessment growth.
To learn more about the 16/17 MID Assessment methodology and analysis, download the MID 16-17 Assessment Summary.