Community Government

Gig Harbor City Council approves small property tax increase

The Gig Harbor City Council voted 5-0 to pass a slight increase in property taxes on Oct. 26. Councilmembers Emily Stone and Julie Martin were absent.

The city opted to raise property taxes by about 0.86%. Under state law, the most a city can increase the base levy collection is 1%. Voters would have to approve a bigger increase, known as a “levy lid lift,” but they already rejected such a measure in 2024.

The property tax increase will cost the owner of an $800,000 home about $4.55 in 2027, said Finance Director Scott Larson.

In meeting documents, the city noted that because Pierce County has not finished assessing property values for this year, this number could still change.

State law also allows the city to collect some revenues above the 1% restriction. Those include taxes from new construction; state-assessed property, such as utilities; and administrative refund recovery. Including the increase to property taxes, the real increase of these pieces is 1.7% this year.

This will bring in just under $60,000 in additional revenue, raising the total city revenue from property taxes to $3.56 million in the coming year.