Yelm taxpayers will likely not see a 1% increase in property tax in 2025 as Yelm Finance Director Stephanie Nanavich recommended against the slight hike in money collected from residents during a Yelm City Council meeting on Tuesday, Oct. 22.

Yelm City Councilors did not vote on the recommendation, as it was a public hearing.

Nanavich, City Administrator Todd Stancil and Yelm city councilors will hold a second and final public hearing related to the ad valorem property tax on Tuesday, Nov. 26, during a Yelm City Council meeting. She noted that in 2024, the city collected $1,699,000 in property taxes.

“We did not take the 1% increase in the prior year, and the ordinance that we’ll bring to council, we are not recommending the 1% increase for 2025 either,” Nanavich said.

Nanavich said that the city will see $85,000 in new construction in the city’s annexation area. She added the city will also collect $9,000 in refunds, which comes about when properties are sold or the assessment roll is adjusted.

“You take last year’s property tax levy amount of $1,699,000, add the $85,000 [for new construction] plus the $9,800 [for refunds] and that will give us the property tax for 2025,” Nanavich said. “As I’ve said before in earlier meetings, we don’t have the final numbers from Thurston County Assessor’s Office yet, so that could change slightly. When we get to the second public hearing for property tax, we should have those final numbers from Thurston County.”

By Nanavich’s explanation, the city can expect a property tax levy in the ballpark of $1,793,800, but ultimately the final number will come from Thurston County.

Councilor Tracey Wood asked Nanavich if she could explain what the 1% increase in taxes would be, and if it’s an additional tax being collected.

“Basically, if we wanted, we could increase the dollar amount of our collection by about $16,000,” Nanavich said. “In order to get someone’s actual property tax number, you have to take our levy amount, divide it by the assessed value of the entire city, and then divide that by 1,000. That will give you a rate. Then you take that rate and multiply it by your home’s assessed value. The overall assessed value has increased citywide a little bit.”

She added that the additional $16,000 would be divided amongst Yelm residents to be collected but noted, in her three years with the City of Yelm, the city has never taken a 1% increase.

More information related to the 2025 City of Yelm ad valorem property tax will become available throughout the November City Council meetings.