Property tax cut

AN ACT Relating to cutting statewide property tax revenues by 10 1
percent without creating a shift to other taxpayers; amending RCW 2
84.52.065 and 84.55.010; and creating a new section.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 84.52.065 and 2022 c 56 s 13 are each amended to 5
read as follows: 6
(1) Except as otherwise provided in this section, subject to the 7
limitations in RCW 84.55.010, in each year the state must levy for 8
collection in the following year for the support of common schools of 9
the state a tax of three dollars and sixty cents per thousand dollars 10
of assessed value upon the assessed valuation of all taxable property 11
within the state adjusted to the state equalized value in accordance 12
with the indicated ratio fixed by the state department of revenue.13
(2)(a) In addition to the tax authorized under subsection (1) of 14
this section, the state must levy an additional property tax for the 15
support of common schools of the state. 16
(i) For taxes levied for collection in calendar years 2018 17
through 2021, the rate of tax is the rate necessary to bring the 18
aggregate rate for state property tax levies levied under this 19
subsection and subsection (1) of this section to a combined rate of 20
two dollars and forty cents per thousand dollars of assessed value in 21
H-1443.1
HOUSE BILL 1997
State of Washington 69th Legislature 2025 Regular Session
By Representatives Mendoza, Manjarrez, and Marshall
Read first time 02/18/25. Referred to Committee on Finance.
p. 1 HB 1997
calendar year 2019 and two dollars and seventy cents per thousand 1
dollars of assessed value in calendar years 2018, 2020, and 2021. The 2
state property tax levy rates provided in this subsection (2)(a)(i) 3
are based upon the assessed valuation of all taxable property within 4
the state adjusted to the state equalized value in accordance with 5
the indicated ratio fixed by the state department of revenue.6
(ii) For taxes levied for collection in calendar year 2022 and 7
thereafter, the tax authorized under this subsection (2) is subject 8
to the limitations of chapter 84.55 RCW. 9
(b)(i) Except as otherwise provided in this subsection, all taxes 10
collected under this subsection (2) must be deposited into the state 11
general fund. 12
(ii) For fiscal year 2019, taxes collected under this subsection 13
(2) must be deposited into the education legacy trust account for the 14
support of common schools. 15
(3) For taxes levied for collection in calendar years 2019 16
through 2021, the state property taxes levied under subsections (1) 17
and (2) of this section are not subject to the limitations in chapter 18
84.55 RCW. 19
(4)(a) For taxes levied for collection in calendar year 2022 and 20
thereafter, the aggregate rate limit for state property taxes levied 21
under subsections (1) and (2) of this section is three dollars and 22
sixty cents per thousand dollars of assessed value upon the assessed 23
valuation of all taxable property within the state adjusted to the 24
state equalized value in accordance with the indicated ratio fixed by 25
the state department of revenue. 26
(b) If the aggregate rate of state property taxes levied under 27
subsections (1) and (2) of this section for collection in any 28
calendar year after 2021 exceeds $3.60 per $1,000 of assessed value, 29
each rate must be reduced on a pro rata basis until the aggregate 30
rate no longer exceeds $3.60 per $1,000 of assessed value.31
(5) For property taxes levied for collection in calendar years 32
2019 through 2021, the rate of tax levied under subsection (1) of 33
this section is the actual rate that was levied for collection in 34
calendar year 2018 under subsection (1) of this section.35
(6) The amount of state taxes levied under this section for 36
collection in calendar years 2026, 2027, and 2028 are as provided in 37
this subsection.38
(a) For calendar year 2026:39
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(i) The amount levied under subsection (1) of this section is the 1
part I highest lawful levy for calendar year 2026 reduced by 10 2
percent plus any increase allowed under RCW 84.55.010.3
(ii) The amount levied under subsection (2) of this section is 4
the part II highest lawful levy for calendar year 2026 reduced by 10 5
percent plus any increase allowed under RCW 84.55.010.6
(b) For calendar year 2027:7
(i) The amount levied under subsection (1) of this section is the 8
part I highest lawful levy for calendar year 2027. For purposes of 9
this subsection (6), "part I highest lawful levy for calendar year 10
2027" means the part I highest lawful levy for calendar year 2026, 11
plus any increase allowed under RCW 84.55.010.12
(ii) The amount levied under subsection (2) of this section is 13
the part II highest lawful levy for calendar year 2027. For purposes 14
of this subsection (6), "part II highest lawful levy for calendar 15
year 2027" means the part II highest lawful levy for calendar year 16
2026, plus any increase allowed under RCW 84.55.010.17
(c) For calendar year 2028:18
(i) The amount levied under subsection (1) of this section is the 19
part I highest lawful levy for calendar year 2027, plus any increase 20
allowed under RCW 84.55.010.21
(ii) The amount levied under subsection (2) of this section is 22
the part II highest lawful levy for calendar year 2027, plus any 23
increase allowed under RCW 84.55.010.24
(7) The amounts levied under subsections (1) and (2) of this 25
section for collection in calendar year 2029 and thereafter are 26
governed by the levy limits in chapter 84.55 RCW and the aggregate 27
rate limit in subsection (4) of this section.28
(8) As used in this section, "the support of common schools" 29
includes the payment of the principal and interest on bonds issued 30
for capital construction projects for the common schools.31
Sec. 2. RCW 84.55.010 and 2021 c 207 s 10 are each amended to 32
read as follows: 33
(1) Except as provided in this chapter, the levy for a taxing 34
district in any year must be set so that the regular property taxes 35
payable in the following year do not exceed the sum of:36
(a) The limit factor multiplied by the amount of regular property 37
taxes lawfully levied for such district in the highest of the three 38
most recent years in which such taxes were levied for such district, 39
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excluding any increase due to (((e))) (b)(v) of this subsection, 1
unless the highest levy was the statutory maximum rate amount ((, plus 2
an)); and3
(b) An additional dollar amount calculated by multiplying the 4
regular property tax levy rate of that district for the preceding 5
year by the increase in assessed value in that district resulting 6
from: 7
(((a))) (i) New construction; 8
(((b))) (ii) Increases in assessed value due to construction of 9
wind turbine, solar, biomass, and geothermal facilities, if such 10
facilities generate electricity and the property is not included 11
elsewhere under this section for purposes of providing an additional 12
dollar amount. The property may be classified as real or personal 13
property; 14
(((c))) (iii) Improvements to property; 15
(((d))) (iv) Any increase in the assessed value of state-assessed 16
property; and 17
(((e))) (v) Any increase in the assessed value of real property, 18
as that term is defined in RCW 39.114.010, within an increment area 19
as designated by any local government in RCW 39.114.020 provided that 20
such increase is not included elsewhere under this section. This 21
subsection (1)(((e))) (b)(v) does not apply to levies by the state or 22
by port districts and public utility districts for the purpose of 23
making required payments of principal and interest on general 24
indebtedness. 25
(2) The requirements of this section do not apply to:26
(a) State property taxes levied under RCW 84.52.065(1) for 27
collection in calendar years 2019 through 2021; and28
(b) State property taxes levied under RCW 84.52.065(2) for 29
collection in calendar years 2018 through 2021. 30
(3) For state property taxes levied for collection in 2026 31
through 2028, the levy must be set so that the regular property taxes 32
payable in the following year equal the limit factor multiplied by 33
the applicable part I or part II highest lawful levy amount as 34
provided in RCW 84.52.065(6), plus an additional dollar amount 35
calculated as provided in subsection (1)(b) of this section.36
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NEW SECTION. Sec. 3. This act applies for collection in 2026 1
and thereafter.2
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