By Cindy Alia 3/28/25
These are sad times when elected senators become so enamored of their policies and programs that they are willing to tax people to this extreme degree and cause rents to increase as for renters. This bill will harm and increase housing issues such as availability and affordability. Some people will be taxed out of their homes!
CAPR members, friends, supporters, you must sign in on Senate Bill 5798 and oppose the bill designed to escalate your property taxes annually!
Also, You can sign in to testify on the bill if providing a piece of your mind is the goal in your opposition!
Read the bill to verify the proposed changes.
This is how the bill will eliminate the 1% cap on property taxes:
The proposed Washington State Senate Bill 5798 allows property tax revenue to increase beyond the previous 1% cap by redefining the "limit factor" used to calculate annual property tax growth. Here's how it works:
Old Limit Factor: Previously, the limit factor was generally set at 101% (a 1% increase) or less for most taxing districts, capping annual property tax revenue growth at 1% unless specific exceptions applied.
New Limit Factor: The bill changes this to the greater of:
100% plus population change and inflation, or
101%.
For cities, counties, and towns (regarding their "current expense levy"), it can be the greater of a limit factor based on 100% plus population change and inflation (if substantial need is shown) or 101%.
Key Metrics:
Population Change: The annual percentage increase in a taxing district’s population, based on official estimates from the Office of Financial Management, calculated to the nearest 0.1%.
Inflation: The annual percentage increase in the Consumer Price Index for all urban consumers in the western region, as reported by the Bureau of Labor Statistics for the most recent 12-month period ending July 25th of the year before taxes are payable.
How It Exceeds 1%: If the combined percentage of population change and inflation exceeds 1%, the limit factor becomes 100% plus that combined value. For example:
If population change is 1.5% and inflation is 2.5%, the combined increase is 4%, making the limit factor 104% (100% + 4%). This allows a 4% increase in property tax revenue, surpassing the old 1% cap.
If the combined value is less than 1%, the limit factor defaults to 101%, maintaining at least the original 1% growth.
This formula eliminates the fixed 1% ceiling, enabling property tax increases to scale dynamically with population growth and inflation when their sum exceeds 1%.
March 28, 2025