Guys. It's time for some game theory.
Let's say three people live on the island: A, B, and C. A owns property worth $1000, B's property is worth $2000, and C's property is worth $3000.
Since the total assessed value (AV) on the island is $6000, and the island can collect $5, the levy rate will 0.00833 (which can be expressed as $8.33 per $1000 of AV)
Simultaneously, the island's assessor goes out and reassesses the properties of A, B and C. Let's assume that this year, the AVs don't change.
Compared to their Year 1 property taxes, each of A, B and C are paying 1% more in Year 2 than they paid in Year 1. This makes sense.
And let's say this time, property values increase uniformly across the island, by 10%. Now A's property is worth $1100, B's is worth $2200, and C's is worth $3300.
This means that in Year 3, A now pays $8.50, B pays $17.00, and C pays $25.51.
This is the fundamental truth about property taxes that many people, both inside and outside #waleg, find counterintuitive.
This means the total Year 4 levy is $51.52, A's property is worth $1210, B's is $2,662, and C's is $3960.
Thus in Year 4, A will pay $8.21, B will pay $16.43, and C will pay $26.88.
For starters, jurisdictions don't have 3 residents like our mythical Crusoe island. Most have thousands are tens of thousands, if not millions. And frankly, computers can crunch these numbers in a few seconds.
We've got the state, county, city, school districts, park districts, fire districts, to name a few.
Occasionally, a district seek voter approval for a "levy lid lift," which is a fancy way of saying "raise the levy by more than the 1% limit."
Most jurisdictions' levy rates are capped—the state can levy a max. of $3.60 (per $1000 of AV), counties can do $4.05, cities $3.375, and most junior districts between $0.25 and $1.00.
E.g., counties may only levy $1.80 for their general fund, plus $2.25 for for roads, but only in unincorporated areas. Cities can raise an extra $0.225, but only if they run a fireman's pension.
Senior districts (cities & counties) can collectively levy a max of $5.90. Junior districts (parks, fire, &c.) are limited to $0.50 total. Oh but some junior districts can dip back into the $5.90 bucket.
1. Rising property value doesn't imply higher prop. taxes
2. Prop. value rising faster than other prop. values does imply higher prop. taxes
3. IRL, prop. taxes are hard.