H-0875.1
HOUSE BILL 1729
State of Washington
69th Legislature
2025 Regular Session
By Representatives Orcutt, Dufault, Manjarrez, Mendoza, Ley, Barnard, and Eslick
Read first time 01/30/25. Referred to Committee on Finance.
AN ACT Relating to providing property tax relief by reducing both parts of the state school levies based on an amount that approximates the fiscal impact of extraordinary growth in property values that exceeded the valuation growth assumptions of budget writers when part two of the state school levy was enacted; amending RCW 84.52.065 and 84.55.010 ; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. In response to the state supreme court decision in McCleary v. State , the legislature chose to make a dramatic increase in state property tax levies to generate additional revenue to pay for schools. In making that decision, state budget writers were operating with forecasted increases in property values as estimated at the time. Since then, property values across the state have continually increased at a much faster pace than anticipated, resulting in an estimated property tax revenue collection in tax years 2018 through 2025 that is four billion dollars more than was intended to be collected with the McCleary fix. This has resulted in an unnecessary property tax burden on Washington residents. It is the intent of the legislature to reduce this burden and provide critical tax relief by reducing state property tax levies. This act provides that relief by reducing both parts of the state school levies beginning in the 2026 tax year and establishing a new basis for the state levies to ensure that the extra revenues collected in past years are not carried forward in future years' levy calculations.
Sec. 2. RCW 84.52.065 and 2022 c 56 s 13 are each amended to read as follows: