Clarification on Port of Olympia taxes

I am writing in response to Edwin Pole’s May 30 Board of Contributors column, “Let’s Dive into the workings of the Port of Olympia.” While he is correct in his statement that ports do not pay property tax on land in public ownership, he failed to note that the lessee who leases the property pays a leasehold tax of .1284 percent times the lease payment to the Port. This leasehold tax is in lieu of property taxes.

So who benefits from this tax? In 2016, the Port of Olympia collected $658,000 in leasehold taxes — the City of Olympia received $118,690, City of Tumwater received $82,324, Thurston County received $100,441, the State of Washington received $350,623, and the port received an administrative fee of $6,121. In 2017, Lacey will be added to that list.

Anthony’s Hearthfire Grill leases port property located at the north end of the Port Peninsula. In addition to paying a leasehold excise tax, they are also paying property tax to the county on the building and contents. Known as Parcel number 99700400200 in the county records, it has an improvement value of $1,751,817. Anthony’s Hearthfire is paying an additional $24,000 in annual property taxes directly to the county.

If the public land is not leased out then it is not generating property tax — just like a public park. As the Port pursues economic development opportunities and businesses invest in those properties, then the community benefits from collected tax revenues and job creation.

This story was originally published June 15, 2018 at 4:48 PM with the headline "Clarification on Port of Olympia taxes."