Spokane Complex fires cut local property tax revenue

The Spokane Complex fires caused about $24 million in property damage, and local governments will collect less property tax in 2026. More than $20 million of the damage was inside Spokane city limits. That amount is small compared with the city’s roughly $35.6 billion in assessed property value and its expected property-tax collections of more than $119 million.

Spokane officials estimate a $500,000 reduction for the 2026 general fund, which runs at about $267.6 million annually. The city’s EMS levy could lose another $100,000. County Treasurer Mike Volz put the combined loss for all affected governments closer to $1.1 million. School districts receive the largest share of property taxes, so Spokane Public Schools may experience the biggest reduction, although no estimate was available.

Partly damaged buildings make the final calculation harder because insurers must review them before their values can be changed. State law generally permits taxing authorities to recover the lost amount the following year, with some exceptions, by spreading the difference across other properties. That recovery is optional. Spokane school board president Jenny Slagle said the board had not discussed changing 2027 taxes, and Michael Cathcart said he was unaware of similar city discussions.