This bill modifies the annual regular property tax revenue growth limit in Washington State by amending existing laws and introducing new definitions and requirements. Key changes include the definition of "inflation," which now refers to the annual percentage increase in the consumer price index for urban consumers in the western region, rather than the previous method based on the implicit price deflator. Additionally, the "limit factor" for property tax growth is adjusted to include population change and inflation, with a cap of 103 percent. A new definition for "population change" is also established, detailing how it is calculated based on official population estimates.

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, assessors must determine and notify taxing districts of their applicable limit factors. The bill also repeals a previous section that allowed certain taxing districts to use a limit factor of one hundred one percent or less. 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