Bill > HB1729

This bill provides property tax relief by reducing state school levies in response to higher-than-expected property value increases following the McCleary v. State education funding decision. Specifically, the legislation aims to address the fact that property values have grown much faster than initially anticipated, resulting in approximately $4 billion more in tax revenue between 2018 and 2025 than originally intended. The bill establishes new mechanisms for calculating state property tax levies for calendar years 2026 through 2028, setting specific maximum levy amounts for both part I and part II of the state school levy. For part I, the highest lawful levy for 2026 is set at $2,789,400,000, and for part II at $1,315,500,000, with allowances for modest increases in subsequent years. These amounts will be subject to a limit factor and can include additional increases from new construction, improvements, and other specified value changes. Starting in 2029, the levies will return to being governed by existing levy limit laws. The overall goal is to provide tax relief to Washington residents by ensuring that the unexpected excess property tax revenues are not permanently built into future levy calculations.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1729&Year=2025&Initiative=false