This bill modifies the annual regular property tax revenue growth limit in Washington State by amending existing laws and introducing new definitions and requirements. It updates the definition of "inflation" to reflect the annual percentage increase in the consumer price index for urban consumers in the western region, replacing the previous method based on the implicit price deflator. Additionally, it introduces a new definition for "population change," which accounts for the annual percent increase in a taxing district's population, and establishes that the limit factor for property tax growth will not exceed 103 percent, incorporating both inflation and population change.

Furthermore, the bill mandates that by September 1, 2025, the Department of Revenue must provide county assessors with necessary limit factors, and by October 1, 2025, county assessors must determine and notify taxing districts of their applicable limit factors. It also repeals the previous authorization for taxing districts to use a limit factor of one hundred one percent or less, streamlining the process for determining property tax limits. The provisions of this act will apply to taxes levied for collection in 2026 and beyond.

Statutes affected:
Original Bill: 84.55.005, 84.04.140