Bill > HB1334

This bill modifies the annual regular property tax revenue growth limit by changing how inflation and population growth are calculated for determining tax increases. The bill updates the definition of "inflation" to use the consumer price index for urban consumers in the western region, instead of the previous implicit price deflator. It introduces a new concept of "population change" which allows taxing districts to increase their property tax revenue by up to 103% when combining population growth and inflation. The bill provides detailed rules for calculating population change, including how to handle districts in multiple counties or with complex geographical boundaries. Specifically, population change is calculated to the nearest 0.1%, with rounding up if the second decimal is five or greater. The bill also requires the Department of Revenue to provide limit factors to county assessors by September 1st each year, and mandates that county assessors determine and notify taxing districts of their applicable limit factor by October 1st. Additionally, the bill repeals a previous law that allowed taxing districts to use a 101% limit factor and specifies that these changes will apply to taxes levied for collection in 2026 and thereafter.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1334&Year=2025&Initiative=false