2026 Grays Harbor County Levy Audit

Overview

Published June 2026

Purpose

The primary purpose of this review by the Department of Revenue (Department) is to assist the Grays Harbor County Assessor (Assessor) in their processes and procedures to ensure compliance with state statutes and regulations. 

Method of Calculation

The Department calculated the levy limitations and levy rate for several of the taxing districts for the 2026 tax year. To determine whether an error occurred, the Department compared the amount levied for the district with the lesser of the levy limit, the statutory rate limit, the amount authorized by each district’s resolution, and the certified levy request amount. 

Information Reviewed

The Department used the following information during the review: 

• Resolutions/Ordinances adopted by the districts.
• Levy certification from the county legislative authority (RCW 84.52.070(1)) and/or individual taxing district (RCW 84.52.070(2)).
• Tax roll certification to the county treasurer and abstract of the tax roll to the county auditor.
• Ballot measures.
• Levy limit worksheets.
• $5.90 aggregate and 1 percent constitutional limitations.

We audited regular and excess levies of approximately 40 percent of the taxing districts in the county. The scope of the audit did not include the review of earmarked funds. 

Taxing Districts Selected

The Department reviewed the following taxing district levies: 

• City/Towns: Cosmopolis, Hoquiam, Montesano, West Port, and Oakville.
• Fire Districts: No. 1, No. 2, No. 4, and No. 12.
• School Districts: Aberdeen No. 005, Hoquiam No. 029, Montesano No. 066, Tahola No. 077, and Oakville No. 400.
• Other districts: Grays Harbor County, Grays Harbor Road, Port of Grays Harbor, and Hospital District No. 1.

Executive Summary

Introduction

The primary purpose of a levy audit by the Department is to assist the county assessor in successfully performing the duties associated with levying property taxes for the districts within the county. 

An effective audit of levy calculations consists of gathering information from the assessor’s office to determine the level of compliance with laws and rules, the accuracy of levy calculations, and the effectiveness of record keeping. 

Categories of Results

The Department has completed its review and grouped the results into two categories: 

• The first category, Requirements, is of the greatest urgency for effective administration by the assessor. A change is required to adhere to the law.
• The Department bases requirements and recommendations in our reports on our review of the administrative procedures employed, existing state statutes and regulations, and areas we saw opportunities to improve processes, procedures, and communication.

The second category, Recommendations, requires the attention of the assessor. The Department believes the assessor could improve their performance and service to the public by making voluntary changes in procedures. 

Results

The Department identified two requirements and two recommendations directed toward improving the accuracy of the levy process. 

We have listed a summary of these items in the Requirements and Recommendation sections. 

Requirements

1. The Department identified two requirements and two recommendations directed toward improving the accuracy of the levy process.
2. We have listed a summary of these items in the Requirements and Recommendation sections.

Recommendation

1. The Department identified two requirements and two recommendations directed toward improving the accuracy of the levy process.
2. We have listed a summary of these items in the Requirements and Recommendation sections.

Requirement 1– Tax Roll

Requirement

The Assessor is required to certify the tax roll to the Grays Harbor County Treasurer (Treasurer) on or before January 15 each year. The tax roll must contain the levy rate, taxable value, and the total taxes levied for each taxing district. 

What the law says

The assessor must certify the tax roll to the county treasurer, taking a receipt from the county treasurer on or before January 15. The tax roll must include the levy rate used to determine the total amount of property taxes for each property tax levy within the county. The tax roll must also include the taxable value of the district and the total amount of the property tax for each levy (RCW 84.52.080). 

When a taxing district is located within a local tax increment finance area, a portion of their regular levy is apportioned to the sponsoring government sponsoring the area. The tax amount is based on the district’s regular levy rate and the increment value of the area (RCW 39.114.050). 

What we found

The Assessor certified the 2026 tax roll to the Treasurer on January 22, 2026, after the deadline of January 15, 2026. 

The tax roll includes the levy rate, total taxable value, and total tax due for all the taxing district levies. The levy rate multiplied by the taxable value does not balance with the total tax amount for the taxing districts included in this audit that are located within the Grays Harbor Port District local tax increment finance area. 

The tax roll includes information for Fund Number 6710001000, Grays Harbor Port District Tax Increment Finance Area. It includes a taxable value of $69,107,500, no levy rate, and a total tax of $249,088.19. This tax amount balances with the amount of revenue to be apportioned to the Grays Harbor Port District as required due to the tax increment finance area. This is based on the area’s increment value of $67,107,000. 

The amount of regular levy property taxes from the County General levy and Grays Harbor Port levy that will be apportioned to the Grays Harbor Port District’s tax increment finance area is not included in the total amount for each of those districts. Instead, that amount of property taxes is included under Fund Number 6710001000 for the local tax increment finance area. 

Action needed to meet requirement

The Assessor is required to take the following action(s): 

• Include the total tax due for each levy in the tax roll. It should not exclude funds that will be apportioned to a local government sponsoring a local finance increment area.
• Certify future tax rolls to the Grays Harbor County Treasurer on or before January 15.

Why it’s important

The tax roll formally supports the assessor’s levy limit calculation ensuring all taxing district levies are property calculated based on the taxable value of property within the county. When the assessor’s levy limit calculations do not balance with the tax roll it appears on the face of the document that an incorrect amount of taxes were levied for those taxing districts. 

Requirement 2 – City of Hoquiam

Requirement

The Assessor is required to levy the lesser of the levy limitations as properly certified to the Assessor or calculated by the Assessor. 

What the law says

The county legislative authority must certify on or before December 15 the amounts of property taxes to be levied upon the property in the county for county purposes to the county assessor. They must also certify the respective amounts of taxes levied by most boards for each taxing district within the county for district purposes to the county assessor on or before the first Monday in December (RCW 84.52.070). 

No increase in property tax revenue may be authorized without a public hearing and adoption of a separate ordinance or resolution that specifically states the increase in revenue, in both dollars and percentage of change. Exceptions to this requirement are increases of revenue due to the following additions: new construction, construction of wind turbines, solar, biomass and geothermal facilities, improvements, state assessed property, and refunds (RCW 84.55.120 and WAC 458-19-085). 

What we found

The voters in the City of Hoquiam (City) approved two excess bond levies, one in 2013 and another in 2023. The City certified a levy request amount for $100,000 for each bond levy to the Grays Harbor County Legislative Authority for the 2026 tax year. These levy amounts include $1,057 for refunding purposes for the 2013 bond levy and $869 for refunding purposes for the 2023 bond levy. This certification document is included in the Grays Harbor County Legislative Authority’s Resolution 2025-118 certifying levy request amounts to the Assessor. The Assessor levied $100,906.83 for the 2013 bond levy and $99,868.25 for the 2023 bond levy. 

The City adopted Ordinance No. 2025-23 authorizing an increase over the prior year’s levy amount. The ordinance includes the dollar and percentage increase for their regular levies, general levy and emergency medical service levy. This statement is statutorily required to be in a separate document from any other property tax levy information. The ordinance also references the City’s two bond levies with what appears to be the amount of the two bond levies: 

• 2013 bond - $99,850.
• 2023 bond - $99,000.

Ordinance No. 2025-23 is included as an attachment to the Grays Harbor County Legislative Authority’s Resolution 2025-118 to the Assessor. 

The Assessor’s 2013 bond levy total is based on $99,850 plus $1,056.83, for refunding purposes that is included in a letter from the Grays Harbor County Treasurer to the taxing district, for a total of $100,906.83.

The Assessor’s 2023 bond levy amount was based on $99,000 plus $868.25, for refunding purposes that is included in a letter from the Grays Harbor County Treasurer to the taxing district, for a total of $99,868.25. The refund letters from the Grays Harbor County Treasurer were also included in the Grays Harbor County Legislative Authority’s Resolution 2025-118. 

Typically, when multiple documents are submitted with conflicting information, the Department instructs the county assessor to levy the lesser of the two amounts. Since the bond levy amounts included in Ordinance No. 2025-23 should not have been included in this document and does not appear to address possible refund levy amounts, the $99,850 and $99,000 amounts should not have been used to determine the levy rates for these bond levies. 

The use of incorrect certified levy request amounts resulted in a $906.83 overlevy for the 2013 bond levy and $131.78 underlevy for the 2023 bond levy.  

See Appendix A for levy calculations. 

Action needed to meet requirement

The Assessor is required to take the following action(s): 

• Notify the taxing district of the levy errors. If the corrections in the succeeding year will cause hardship for either the taxing district or taxpayers, the district may request the correction be made on a proportional basis over a period of no more than three years. 

Why it’s important

By calculating the levy limitations as required by law and levying the lesser of those limitations, it will ensure the assessor is not levying more or less than statutes allow on behalf of the taxing district and taxpayers pay the correct amount of property taxes. 

Recommendation 1 – Refund letter to taxing districts

Recommendation

The Department recommends the Assessor work with the Grays Harbor County Treasurer and modify the refund letter sent to the taxing districts. 

What we found

The Grays Harbor County Treasurer provides each taxing district with a letter stating the amount of refunds made or to be made, plus abated or cancelled taxes offset by any supplemental taxes that have occurred in a 12-month period. This letter provides crucial information for the taxing district to use when they are determining the amount of property taxes they wish to levy. 

The letter includes instructions to return the letter to the Assessor indicating the amount of refund they wish to include in their property tax levy. 

Action recommended

The Department recommends the Assessor take the following action(s): 

• Rather than instruct the taxing district to return the letter to the Assessor, the instructions should instruct the taxing district to include the appropriate refund levy amount in their levy request certification to the Grays Harbor County Legislative Authority. 

Why it’s important

The Assessor must complete the levy limit calculations based on information that has been properly certified to him. RCW 84.52.020 and RCW 84.52.070 limits who can certify their levy requests directly to the county assessors. For example, towns may certify their levy request amounts directly to the county assessor, but cities cannot. 

Also, as seen in this audit, the refund levy amount included in the refund letter from the Grays Harbor County Assessor does not always balance with district’s certification to the Grays Harbor County Legislative Authority. When there is conflicting information, the actual amount levied may not be what the district expected. 

Recommendation 2 – Certification of levy request amounts

Recommendation

The Department recommends the Assessor continue to provide education to the Grays Harbor County Legislative Authority regarding the timely certification of the levy amounts for each taxing district within the county that wishes to levy property taxes. 

What we found

The Assessor provided the Department with Resolution No. 2025-118 certifying levy amounts for non-county purposes to the Assessor dated December 9, 2025. This certification should have been made on or before December 1, 2025. The certification included information other than the levy requested amounts including: 

• Taxing district’s documentation authorizing a property tax increase over the prior year.
• The Grays Harbor Treasurer’s letter to the taxing district informing them of the amount of taxes that were refunded to taxpayers in the prior 12 months.

The Assessor provided the Department with a certification dated December 23, 2025, certifying levy amounts for county purposes. This certification should have been made on or before December 15, 2025. 

The final real property ratio was certified to the Assessor on November 13, 2025; thus the Assessor was unable to certify both local and state assessed values to the taxing districts at least 12 business days before November 30. Since the certification of assessments to the taxing district and the certification of levy request amounts were not completed timely, the levy consequence limiting the levy amounts to the prior year’s certified levy amount in RCW 84.52.070(3) does not apply.  

Action recommended

The Department recommends the Assessor take the following action(s):

• The certification should include a single, total levy amount for each of the district’s levies and a single refund levy amount with a statement if the refund amount is or is not included in the total levy amount.
  • On or before December 15 for county levies.
  • On or before the first Monday in December for non-county levies.
    • A timely certification:
  • Continue to educate the Grays Harbor County Legislative Authority regarding the certification of each taxing district’s levy to the Assessor. This should include:

Why it’s important

When the levy certification request amounts are not made timely and the Assessor has certified both local and state assessed values to the taxing districts at least twelve business days before November 30, the Assessor must limit the levy amounts to no more than what was properly certified to his office in the prior year. 

When multiple levy amounts are certified to the Assessor for the same taxing district levy, the amount levied by the Assessor may not be the intended levy amount. 

Next steps

Follow-up

The Department is committed to the success of the Assessor by ensuring the levies comply with state statutes and regulations. 

The Department will conduct a follow-up review in 2027. This will give the Assessor an opportunity to implement the required changes, recommended changes, and to provide information to the Department about any issues they encountered during the implementation process. 

Appendices

Appendix A

The following worksheets contain levy calculations for the districts with errors in this audit.