Fire Benefit Charge

History of the Fire Benefit Charge
In September of 1989 District residents voted on a plan to reduce the District’s dependence on uncertain property tax revenues in exchange for a Benefit Charge. The vote was affirmative, and a Benefit Charge was routinely implemented for the calendar years 1990 to present. In February 1995, February 2001 and February 2007, the voters authorized an extension of the Benefit Charge for six more years, or through the year 2013.

Fire Benefit Charge Links
The Northshore Fire Department receives the property information from King County. If you have any questions regarding the square footage on the benefit charge, this is the County site that delineates your total square footage. This will include living area, basements and covered parking. You will need your 10 digit parcel number to access the information on this site: http://info.kingcounty.gov/Assessor/eRealProperty/default.aspx

For questions regarding the listed amount of square footage for your property call: King County Tax Assessors Office 206-296-3920

PLEASE NOTE: In your property tax you are taxed on the total living square footage, but for the FBC portion you are taxed on total square feet of ALL buildings including a garage.

APPEAL FORM:
2012 Petition For Adjustment

FREQUENTLY ASKED QUESTIONS:

1. What is a benefit charge?
The 1987 Washington State Legislature passed RCW 52.18. This statute provides that fire districts, with the approval of the voters in the district, are authorized to collect a benefit charge from residential and business property owners. This legislation also requires the District to hold a hearing regarding the proposal to impose a benefit charge prior to the election authorizing its use. This hearing must be held no more than sixty days nor less than 10 days before the election. The law also provides that the benefit charge shall be reasonably proportioned to the benefits received by the property resulting from the services provided by the fire district. This is referred to as a “benefit charge.”

The benefit charge is not a per call charge and is not based on property value. The benefit charge is a fee which is based on the benefit of having fire protection. The benefit charge is collected by the County Treasurer’s office along with the property tax bill.

2. How will a benefit charge provide a better source of funding for the Fire District?
The benefit charge is a fairer way of funding the District’s fire service. Property taxes only take into consideration the value of the property and not the benefits provided by the fire district. These benefits include lower fire insurance costs which are passed on to the home owner. Other benefits include charging the cost of specialized equipment and training required by some properties to those properties. By using a benefit charge, costs will be more fairly distributed.

3. Who establishes the benefit charge and what does it cover?
RCW 52.18 provides that the Board of the Fire Commissioners may fix and impose a benefit charge on personal property and improvements to real property. The benefit charge does not apply to land. The benefit charge covers such property as residential buildings, commercial structures, agricultural buildings, and other structures affixed to the land.

The statute also provides for certain exemptions, which include:

• Personal property not used in business.
• Property that is the subject of a contract for services with the District, including publicly owned buildings.
• Any property used for religious purposes by a recognized religious organization, including educational facilities.
• Property which maintains its own fire department.

4. In general, how does the benefit charge work?
The benefit charge, presently used by the Fire District has two components, which establish the measurable benefits to property. The current benefit components are based on the square footage of a building and the buildings use. This determines the fire flow needed.
The fire flow benefit describes in a broad sense the fire fighting efforts necessary for a fire district to put out a fire in a specific structure. The fire flow benefit takes into financial consideration the demands a particular structure could place upon a fire department. The criteria used to establish the “fire flow” have been empirically determined by the National Fire Protection Association (NFPA), Insurance Services Office (ISO) and the Washington Fire Rating Bureau. Using the formula established by these agencies, a “fire flow” is determined. That number is coupled with a factor based on the building’s use and “cost per gallon” determined by District needs.

5. How much revenue will be available from the benefit charge?
The statute states that the total amount that can be raised by a benefit charge cannot exceed 60% of the operating budget. If a fire district enacts a benefit charge it must reduce its maximum regular property tax levy from $1.50 to $1.00 per $1,000 assessed valuation. In actual practice for the years the Fire District has utilized the benefit charge, the District has imposed taxes and charges in an amount less than could have been obtained at a $1.50 per thousand dollars of assessed valuation. On average the annual cumulative amount of benefit charge and taxes is equivalent to $1.48 per $1,000 assessed value. This is less than the statutorily allowed tax limit.

6. How will a benefit charge help the average homeowner?
It will provide a continued level of dependable fire service by maintaining well-equipped fire fighters; and because you will have a regular voice in the benefit charge, you will have greater control over the cost of your fire service.

7. How long is the benefit charge good for?
The benefit charge law provides for annual public hearings and must be put to the voters for renewal every six years. Current authorization extends through 2013.

8. Can I calculate my own benefit charge?
Yes. The formula for a residence is:

A) Take the square root of the square footage of the building that is part of your tax record
B) Multiply the result by 18 (the “fire flow” factor)
C) Multiply result by 0.57 (residential factor)
D) Multiply result by cost/gallon: $0.424195241
E) Result is your benefit fee
*Cost per gallon is derived by adding together the total fire flow for the District divided by the dollar amount needed to be raised by this Benefit Charge.

9. How is the Benefit Charge Collected?
The Benefit Charge is collected as part of, and along with your regular property tax payment. It is noted on your tax statement in a separate category and usually labeled “Fire.” Do not send payment to your fire department.