The Washington State Legislature will not move forward on a proposal that would have allowed cities and counties to increase property tax rates by 3% without voter approval.
“It’s not going to advance this year,” Sen. Jamie Pedersen, D-Seattle, author of Senate Bill 5770, told the Washington State Standard on Friday.
During a Jan. 18 committee hearing, Pedersen said the bill would have given local governments “something that more closely approximates inflation and population growth, and allows them to keep up with the needs of our growing population.”
However, on Friday, Pederson told The Washington Standard, “We need to do the work and the reality is that given the voter mood and the initiatives we were not ready to fix that policy.”
The move comes after Senate Republicans held an all-hands-on-deck press conference on the proposal Thursday morning. More than 90% of those who testified on the legislation during the Jan. 18 hearing did so against it.
“This is a win for the people of Washington. Senate Bill 5770 could have resulted in the largest property tax increase in our state’s history — without a vote of the people. This bill is overwhelmingly unpopular,” Senate Minority Leader John Braun, R-Centralia, said in a statement Friday. “People can’t afford a 3% annual increase in their property taxes. And renters can’t afford another tax that could push them out on the street. I’d like to think Democrats are starting to listen to people’s very real concerns.”
Braun added, “Some counties have a spending problem, not a revenue problem.”
Previous story: Bill could allow Washington counties to increase property taxes by 3%
Counties could soon gain the ability to increase property tax rates by 3% without voter approval if legislation currently in the Washington state Senate moves forward.
If passed, Senate Bill 5770 would raise the cap on annual property tax increases that counties could impose without voter approval from 1% to 3%. The bill cleared the Senate Ways and Means Committee on Monday. It is sponsored by Sen. Jamie Pedersen, D-Seattle.
“This is a bill about public safety,” Pedersen said during a Jan. 18 committee hearing on the proposal. “The county governments that will be most affected by this have the primary responsibility in our system for criminal justice, everything from sheriffs to the court system and the prosecutors and public defenders.”
Pedersen said the bill would give county governments “something that more closely approximates inflation and population growth, and allows them to keep up with the needs of our growing population.”
According to a spokesperson for Senate Democrats, based on a median home value of $853,000, the proposal could have cost an additional $8.01 to King County homeowners in 2024 based on the county’s general levy rate.
The legislation would also not guarantee a significant increase to a homeowner's tax bill. While the cap would be 3%, counties could opt for a smaller increase. Taxing districts could also “bank” the capacity, which would allow for an additional increase in future years.
“It allows the elected officials that need more, and desire more public services, to go ahead and increase by more,” Pedersen said.
Lewis County Assessor Ross Nielson said while the bill is not guaranteed to move forward, it would give more authority to taxing districts to increase property tax rates. Nielson added that the assessor’s office does not determine the rates of individual taxing districts.
Nielson also noted the cap previously sat at 6%, though it was lowered to 1% in 2001 through a statewide initiative. After the Washington state Supreme Court ruled in 2007 that the Tim Eyman-backed initiative was unconstitutional, the Legislature reinstituted the 1% cap.
Officials throughout the state — including those representing King County, Duvall, the Association of Washington Cities, Blaine and Olympia — testified on Jan. 18 that the increase would give their communities greater flexibility.
“The 1% arbitrary cap doesn’t reflect the actual revenue and expenditure needs of any community. Instead, it gives local officials the opportunity to make decisions on how to best fund city services,” said Amy Ockerlander, the vice president of the Association of Washington Cities and Mayor of Duvall. “Locally elected officials are directly responsible for our residents about the decisions we make.”
Still, the legislation has drawn the ire of legislative Republicans — who held a press conference on the proposal Thursday morning — and more than 90% of those who testified on the legislation during its committee hearing.
“I am a senior citizen, and folks like myself and hardworking people would be very horribly impacted by an increase. This was set up for our protection, and if you guys want more money, all you have to do is ask the voters,” one woman testified. “We don’t need more of this, we need less of it. We’re barely keeping ourselves afloat.”
In a statement, State Rep. and Washington GOP chair Jim Walsh encouraged residents to contact their legislators and encourage a no-vote.
“Once again it’s never enough for the Democrat majority in the legislature,” Sen. Drew MacEwen, R-Shelton, said in a statement.
During the press conference Thursday, Senate Minority Leader John Braun, R-Centralia, said the proposal would constitute “the largest property tax increase in our state’s history if fully implemented.”
“The truth is it hurts everybody who owns a home or rents a place to live, and by that I mean everybody. The truth is it disproportionately hurts folks who are at the lower end of the income scale, folks who are just making it paycheck to paycheck,” Braun said. “Those are the folks who are getting hurt the most.”
The bill has not been scheduled for a vote in the Senate. While Tuesday is the last day for most bills to pass in their chamber of origin, SB 5770 would decrease state revenue and could be passed later in the session.
