Treasurer reports strong early tax collections, explains REET changes and warns of administrative workload from expanded senior exemption

Deborah Gardner, Cowlitz County treasurer, delivered the treasurer’s quarterly update, reporting property-tax collections are on track after a large mortgage-company payment and outlining how state and local policy changes will affect county administration and revenues.

Collections and cash: Gardner said first-quarter collections were stronger this year (8.56% in the first quarter) and that a lump payment from mortgage companies boosted year-to-date collections to about 55.8%. She listed the county’s beginning general-fund cash and current balances and provided a multi-year view of collection volumes and the county investment pool performance.

Real estate excise tax (REET) and processing: Gardner reviewed the county’s role as the processing agent for REET affidavits and noted Washington state’s January 1, 2023 change to a graduated REET structure for the state portion. She explained how the state and local portions are allocated, described county processing fees and a technology fee, and provided historical affidavit counts to show market-driven volatility.

Bonds and PFD: Gardner said the county completed a limited general-obligation bond issuance tied to the Public Facilities District (PFD) to refund prior debt and fund improvements to the event center; she reiterated that PFD debt is repaid from a state sales-tax rebate to the district rather than a new local tax levy.

Ports and cash management: Gardner reported the Port of Woodland designated its own treasurer effective April 1 and will withdraw roughly $1 million from the county investment pool; she also said another port indicated plans to leave the pool in July with an estimated $20 million withdrawal. She outlined implications for the county pool and described a payee-positive-pay program the treasurer’s office implemented with the bank to reduce check fraud and reconcile warrants more securely.

Policy changes and impacts: Gardner summarized a recently enacted penny-rounding change the meeting referenced as "house bill 23 34" that takes effect June 11 and explained the county will update its cash-handling policy; she also summarized a senate bill referenced in the meeting (described as a senior and disabled exemption change) that will expand eligibility and shift tax burden to other taxpayers, producing a large increase in administrative workload and potential refunds for qualifying taxpayers.

What’s next: Gardner said staff will circulate guidance on cash handling and rounding, continue implementing payee-positive-pay with banks and districts, and return with more detail on the fiscal impacts of the senior/disabled exemption as the county models expected participation.