A Tale of the Taxes

From 2014 to 2023, Washington State’s tax collections soared from $17.2 billion to $36.4 billion, fueled by nearly 50 new taxes and fees. Mercer Island, nestled in King County, has borne the brunt of this surge. Countywide property tax revenue climbed 78.4% over the decade, driven by skyrocketing home values and new levies. On Mercer Island, where the median home value hit $2.036 million, an effective tax rate of 0.61% still translates to a hefty $12,455 annual bill due to high property values.

A sharp increase struck in 2018, with Mercer Island property taxes leaping 18.18%, outpacing King County’s 16.92% rise. This stemmed from a statewide hike to fund K-12 education (the “McCleary fix”), adding $1.01 per $1,000 of assessed value. For a $1.2 million home, that meant a $1,607 jump, with 60.2% earmarked for schools and just 11.6% staying local. By 2023, the island’s 8,042 properties, valued at $15.3 billion, generated $111.7 million in taxes, with homeowners averaging $13,895 yearly—well above the county’s $7,630.

These increases, tied to state education mandates, county value growth, and local levies, have hit high-value properties hardest. Yet, despite a low base rate and voter resistance to further hikes, the burden has swelled amid Washington’s 43% per-person tax increase over the decade.

Tax increases in Washington State vs. Reading and Math

So, how has this worked for education? The results are sobering. On Mercer Island, 32.2% of students fall short of science standards, 24% miss math benchmarks, and 17% fail to meet reading requirements. Even in high-performing areas like Mercer Island, where outcomes rank among the state’s best, the system’s flaws are glaring. Statewide, some schools lag by as much as 71%. When nearly a third of kids are left behind, the mark is being missed badly. Pouring billions into public schools, including $8 billion from the McCleary fix, hasn’t turned the tide. Something’s critically broken, and more money doesn’t seem to be fixing it.

How can such a massive funding surge be so detached from results? With millions more flowing into Washington’s schools, further investigation is overdue to uncover where the money’s really going.

It raises the question: Was the McCleary fix less a solution and more a sleight of hand—burdening unsuspecting taxpayers in what might be the state’s biggest financial misstep yet?