Property tax revenue growth

AN ACT Relating to modifying the annual regular property tax 1
revenue growth limit; amending RCW 84.55.005 and 84.55.100; creating 2
a new section; and repealing RCW 84.55.0101. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 84.55.005 and 2014 c 97 s 316 are each amended to 5
read as follows: 6
The definitions in this section apply throughout this chapter 7
unless the context clearly requires otherwise. 8
(1) "Inflation" means ((the percentage change in the implicit 9
price deflator for personal consumption expenditures for the United 10
States as published for the most recent twelve-month period by the 11
bureau of economic analysis of the federal department of commerce by 12
September 25th of the year before the taxes are payable; )) the annual 13
percentage increase in the consumer price index for all urban 14
consumers in the western region for all items as provided in the most 15
recent 12-month period by the bureau of labor statistics of the 16
United States department of labor by July 25th of the year before the 17
taxes are payable.18
(2) "Limit factor" means((:19
H-0522.1
HOUSE BILL 1334
State of Washington 69th Legislature 2025 Regular Session
By Representatives Pollet, Duerr, Fitzgibbon, Ryu, Berry, Ormsby,
Ramel, Macri, Reed, Hill, Doglio, Alvarado, Callan, and Fosse
Read first time 01/16/25. Referred to Committee on Finance.
p. 1 HB 1334
(a) For taxing districts with a population of less than ten 1
thousand in the calendar year prior to the assessment year, one 2
hundred one percent;3
(b) For taxing districts for which a limit factor is authorized 4
under RCW 84.55.0101, the lesser of the limit factor authorized under 5
that section or one hundred one percent;6
(c) For all other districts, the lesser of one hundred one 7
percent or one hundred )) 100 percent plus population change and 8
inflation((; and)), not to exceed 103 percent.9
(3)(a) "Population change" means the annual percent increase in 10
the population of a taxing district between the two most recent years 11
as provided in the official population estimates published by the 12
office of financial management for April 1st of the year before taxes 13
are payable. If the office of financial management estimates a net 14
decrease in a taxing district's population, for the purposes of this 15
section, the population change is zero. For a county, the "population 16
of a taxing district" means the population within the county's 17
incorporated and unincorporated areas, unless the county taxing 18
district boundaries are limited to the unincorporated county areas, 19
in which case the "population of a taxing district" means the 20
population of the unincorporated county areas only. For taxing 21
districts that are not coterminous with one or more cities, towns, 22
counties, or unincorporated county areas, or any combination thereof, 23
as provided in the official population estimates published by the 24
office of financial management in April of the year before the taxes 25
are payable, "population change" means:26
(i) The population change for the city or town within which the 27
taxing district is wholly located;28
(ii) The population change for the county in which the taxing 29
district is wholly located, when the taxing district is not wholly 30
located within a city or town; or31
(iii) For taxing districts located in more than one county, the 32
county population change for the county in which the greatest total 33
taxable assessed value of the taxing district for the prior 34
assessment year is located.35
(b) For the purposes of this subsection (3), the annual percent 36
increase in population is calculated to the nearest 0.1 percent, 37
rounding up to the next 0.1 percent if the second decimal place of 38
the annual percent increase is five or greater.39
p. 2 HB 1334
(4) "Regular property taxes" has the meaning given it in RCW 1
84.04.140. 2
Sec. 2. RCW 84.55.100 and 1983 c 223 s 1 are each amended to 3
read as follows: 4
(1) The property tax limitation contained in this chapter shall 5
be determined by the county assessors of the respective counties in 6
accordance with the provisions of this chapter: PROVIDED, That the 7
limitation for any state levy shall be determined by the department 8
of revenue and the limitation for any intercounty rural library 9
district shall be determined by the library district in consultation 10
with the respective county assessors. 11
(2) By September 1, 2025, and by September 1st every year 12
thereafter, the department of revenue must provide county assessors 13
the limit factors necessary for the county assessor to comply with 14
subsections (1) and (3) of this section.15
(3) By October 1, 2025, and by October 1st every year thereafter, 16
the county assessor must determine the limit factor applicable to 17
each taxing district in their county and notify each taxing district 18
of the determination. However, for a taxing district located in more 19
than one county, the assessor of the county with the most assessed 20
value of the taxing district is subject to the requirements of this 21
subsection (3).22
NEW SECTION. Sec. 3. RCW 84.55.0101 (Limit factor— Authorization 23
for taxing district to use one hundred one percent or less — Ordinance 24
or resolution) and 2007 sp.s. c 1 s 2 & 1997 c 3 s 204 are each 25
repealed.26
NEW SECTION. Sec. 4. This act applies to taxes levied for 27
collection in 2026 and thereafter.28
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p. 3 HB 1334