Local property tax levies

AN ACT Relating to imposing local property tax levies wholly 1
credited against the state property tax to provide support and 2
services for veterans' assistance and for persons with developmental 3
disabilities or mental health needs; amending RCW 71.20.110 and 4
73.08.080; providing an effective date; and declaring an emergency.5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 71.20.110 and 2013 c 123 s 1 are each amended to 7
read as follows: 8
(1) In order to provide additional funds for the coordination and 9
provision of community services for persons with developmental 10
disabilities or mental health services, the county governing 11
authority of each county in the state must budget and levy annually a 12
tax in a sum equal to the amount which would be raised by a levy of 13
((two and one-half )) 2.5 cents per ((thousand dollars )) $1,000 of 14
assessed value against the taxable property in the county ((, or as 15
such amount is modified pursuant to subsection (2) or (3) of this 16
section,)) to be used for such purposes. ((However, all )) The levy 17
must be deducted from the amount of tax otherwise required to be 18
collected or paid to the department of revenue for the state levy 19
under RCW 84.36.005 at no cost to the county.20
H-0146.1
HOUSE BILL 1397
State of Washington 69th Legislature 2025 Regular Session
By Representatives Orcutt, Leavitt, Schmick, Jacobsen, and Reeves
Read first time 01/20/25. Referred to Committee on Finance.
p. 1 HB 1397
(2) All or part of the funds collected from the tax levied for 1
the purposes of this section may be transferred to the state of 2
Washington, department of social and health services, for the purpose 3
of obtaining federal matching funds to provide and coordinate 4
community services for persons with developmental disabilities and 5
mental health services. In the event a county elects to transfer such 6
tax funds to the state for this purpose, the state must grant these 7
moneys and the additional funds received as matching funds to 8
service-providing community agencies or community boards in the 9
county which has made such transfer, pursuant to the plan approved by 10
the county, as provided by chapters 71.24 and 71.28 RCW and by 11
chapter 71A.14 RCW, all as now or hereafter amended.12
(((2) The amount of a levy allocated to the purposes specified in 13
this section may be reduced in the same proportion as the regular 14
property tax levy of the county is reduced by chapter 84.55 RCW.15
(3)(a) The amount of a levy allocated to the purposes specified 16
in this section may be modified from the amount required by 17
subsection (1) of this section as follows:18
(i) If the certified levy is reduced from the preceding year's 19
certified levy, the amount of the levy allocated to the purposes 20
specified in this section may be reduced by no more than the same 21
percentage as the certified levy is reduced from the preceding year's 22
certified levy;23
(ii) If the certified levy is increased from the preceding year's 24
certified levy, the amount of the levy allocated to the purposes 25
specified in this section must be increased from the amount of the 26
levy so allocated in the previous year by at least the same 27
percentage as the certified levy is increased from the preceding 28
year's certified levy. However, the amount of the levy allocated to 29
the purposes specified in this section does not have to be increased 30
under this subsection (3)(a)(ii) for the portion of a certified levy 31
increase resulting from a voter-approved increase under RCW 84.55.050 32
that is dedicated to a specific purpose; or33
(iii) If the certified levy is unchanged from the preceding 34
year's certified levy, the amount of the levy allocated to the 35
purposes specified in this section must be equal to or greater than 36
the amount of the levy so allocated in the preceding year.37
(b) For purposes of this subsection, "certified levy" means the 38
property tax levy for general county purposes certified to the county 39
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assessor as required by RCW 84.52.070, excluding any amounts 1
certified under chapters 84.69 and 84.68 RCW. 2
(4) Subsections (2) and (3) of this section do not preclude a 3
county from increasing the levy amount in subsection (1) of this 4
section to an amount that is greater than the change in the regular 5
county levy.))6
Sec. 2. RCW 73.08.080 and 2019 c 432 s 35 are each amended to 7
read as follows: 8
(1) The legislative authority in each county must levy, in 9
addition to the taxes now levied by law, a tax in a sum equal to the 10
amount that would be raised by not less than ((one and one-eighth )) 11
1.8 cents per ((thousand dollars)) $1,000 of assessed value, and not 12
greater than ((twenty-seven)) 27 cents per ((thousand dollars )) 13
$1,000 of assessed value against the taxable property of their 14
respective counties, to be levied and collected as now prescribed by 15
law for the assessment and collection of taxes, for the purpose of 16
creating a veterans' assistance fund. 17
(2) The levy must be deducted from the amount of tax otherwise 18
required to be collected or paid to the department of revenue for the 19
state levy under RCW 84.36.005 at no cost to the county.20
(3) Expenditures from the veterans' assistance fund, and interest 21
earned on balances from the fund, may be used only for:22
(a) The veterans' assistance programs authorized by RCW 23
73.08.010; 24
(b) The lawful disposition of the remains as defined in RCW 25
68.04.020 of a deceased indigent veteran or deceased family member of 26
an indigent veteran as authorized by RCW 73.08.070; and27
(c) The direct and indirect costs incurred in the administration 28
of the fund ((as authorized by subsection (2) of this section)).29
(((2) If the funds on deposit in the veterans' assistance fund, 30
less outstanding warrants, on the first Tuesday in September exceed 31
the lesser of the expected yield of one and one-eighth cents per 32
thousand dollars of assessed value against the taxable property of 33
the county or the expected yield of a levy determined as set forth in 34
subsection (5) of this section, the county legislative authority may 35
levy a lesser amount than would otherwise be required under 36
subsection (1) or (5) of this section.37
(3) The direct and indirect costs incurred in the administration 38
of the veterans' assistance fund must be computed by the county 39
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auditor, or the chief financial officer in a county operating under a 1
charter, not less than annually. Following the computation of these 2
direct and indirect costs, an amount equal to these costs may then be 3
transferred from the veterans' assistance fund to the county current 4
expense fund. 5
(4) The amount of a levy allocated to the purposes specified in 6
this section may be reduced in the same proportion as the regular 7
property tax levy of the county is reduced by chapter 84.55 RCW.8
(5)(a) The amount of a levy allocated to the purposes specified 9
in this section may be modified from the amount required by 10
subsection (1) of this section as follows:11
(i) If the certified levy is reduced from the preceding year's 12
certified levy, the amount of the levy allocated to the purposes 13
specified in this section may be reduced by no more than the same 14
percentage as the certified levy is reduced from the preceding year's 15
certified levy;16
(ii) If the certified levy is increased from the preceding year's 17
certified levy, the amount of the levy allocated to the purposes 18
specified in this section may not be less than the base allocation 19
increased by the same percentage as the certified levy is increased 20
from the preceding year's certified levy. However, the amount of the 21
levy allocated to the purposes specified in this section does not 22
have to be increased under this subsection (5)(a)(ii) for the portion 23
of a certified levy increase resulting from a voter-approved increase 24
under RCW 84.55.050 that is dedicated to a specific purpose; or25
(iii) If the certified levy is unchanged from the preceding 26
year's certified levy, the amount of the levy allocated to the 27
purposes specified in this section must be equal to or greater than 28
the base allocation.29
(b) For purposes of this subsection, the following definitions 30
apply:31
(i) "Base allocation" means the most recent allocation that was 32
not reduced under subsection (2) of this section.33
(ii) "Certified levy" means the property tax levy for general 34
county purposes certified to the county assessor as required by RCW 35
84.52.070, excluding any amounts certified under chapters 84.69 and 36
84.68 RCW.37
(6) Subsections (2), (4), and (5) of this section do not preclude 38
a county from increasing the levy amount in subsection (1) of this 39
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section to an amount that is greater than the change in the regular 1
county levy.))2
NEW SECTION. Sec. 3. This act is necessary for the immediate 3
preservation of the public peace, health, or safety, or support of 4
the state government and its existing public institutions, and takes 5
effect July 1, 2025.6
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