The proposed bill seeks to reform property tax regulations in Washington State to better align funding for essential public services, such as education and public safety, with population growth and inflation. A key change is the modification of the existing one percent cap on property tax revenue growth, which has been identified as inadequate for addressing the needs of expanding communities. The bill introduces a new definition of "inflation" based on the consumer price index and establishes a "population change" metric to facilitate more flexible tax revenue growth. Additionally, it clarifies limit factors for property tax collections to ensure local governments can adequately fund critical services.

The legislation also expands the senior citizen property tax relief program by exempting participants from state levies, preventing tax rate increases due to this exemption. It mandates that property tax statements clearly identify the state property tax as the state school levy, enhancing transparency. The bill sets deadlines for tax statement distribution and includes new language to categorize parts of the state property tax. It outlines conditions for delinquent taxes, allows for electronic billing, and provides options for payment agreements. Furthermore, it includes provisions for waiving interest and penalties for qualified taxpayers facing foreclosure and specifies that no interest or penalties will be assessed during periods of armed conflict for active duty military personnel. The act is intended to support state government and public institutions, applying to taxes levied for collection in 2026 and beyond.

Statutes affected:
Original Bill: 84.55.005, 84.04.140, 84.55.0101, 84.36.381, 84.56.020