Kennewick Approves Property Tax Levy Increase
The city adopted a levy increase of just over 3% for 2027 to help close an $11.4 million budget gap.
Updated on Nov. 9, 2026 in Taxes
Live Poll
Would you support a small property tax increase to keep local police and fire services funded?
The Kennewick City Council unanimously adopted a property tax levy increase of just over 3% for 2027, passing the ordinance 6-0 with Mayor Jason McShane absent. The city also eliminated its legal department and cut four jobs, contracting those services instead.
Why it matters
The city says inflation and rising expenditures are hampering its budget, and property tax increases have not kept pace with rising costs. The levy helps address an $11.4 million budget gap in the city's $568 million biennial budget.
The levy increase is just over 3%, against a legal limit of 1% annual growth in property tax revenue with unused capacity bankable, and would add about $16.45 a year on a $430,000 home. The city expects a levy rate of about $1.33 per $1,000 of assessed value, and the outcome of the November 17 final budget action remains pending.
The players
Kennewick City Council
The seven-member governing body of Kennewick, Washington, which sets the city's property tax levy and adopts its biennial budget.
Jason McShane
The mayor of Kennewick, Washington, who said the levy increase was necessary and was absent from the vote.
The details
The city collected on banked property tax capacity and a 1% increase to reach the levy, which is projected to unlock $492,000 in revenue that compounds over time. Property tax revenue makes up about 20%, or $32 million, of the general and street fund, while sales taxes are the largest source at 33%, and the city forecasts sales tax revenue to rise 19% in the next biennium.
Timeline
October 2026: McShane said at a city council study session that the increase was necessary.
Nov. 3, 2026: The council unanimously adopted the levy ordinance and held the first budget hearing.
2027: The property tax levy increase takes effect.
Tuesday, Nov. 17, 2026: A second public hearing and final budget action are scheduled.
Market Dynamics
Washington cities are limited by a 1% annual cap on property tax revenue growth, with unused capacity bankable for later years, and Kennewick is drawing on that banked room to exceed the baseline. Neighboring Richland's 8% levy increase shows how far cities can push when they have accumulated capacity, while Pasco and West Richland are raising levies by 1%.
For a home assessed at $430,000, the increase works out to about $16.45 more per year in property taxes. Residents should watch the November 17 final budget action, since the levy and budget decisions set what homeowners pay in 2027.
The takeaway
Local property tax levies are capped by state law, so budget gaps often show up as small annual increases for homeowners alongside service cuts. Following the final budget vote will show how the city balances those trade-offs.
What happens next
A second public hearing and final action on the city's budget are scheduled for Tuesday, Nov. 17, 2026.
Further reading
Explore more on Kennewick taxes for context on how local levies are set.
Source note: This article includes information reported by Tri-City Herald.
Live Poll
Would you support a small property tax increase to keep local police and fire services funded?
