This bill modifies the annual regular property tax revenue growth limit in Washington State by amending existing definitions and procedures related to property tax assessments. Key changes include redefining "inflation" to refer 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" is adjusted to include population change and inflation, with a cap of 103 percent. A new definition for "population change" is introduced, detailing how it is calculated based on official population estimates.

Furthermore, the bill establishes new timelines for the Department of Revenue and county assessors to determine and communicate limit factors for property tax assessments. Specifically, the Department of Revenue is required to provide necessary limit factors by September 1 each year, while county assessors must notify taxing districts of their determinations by October 1. The bill also repeals the previous authorization for taxing districts to use a limit factor of 101 percent or less, streamlining the process for property tax revenue growth. 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