Democratic lawmakers in Washington are making another attempt to lift the 1% cap on annual property tax hikes, a move that could inject billions into schools and local governments but is already facing stiff resistance from homeowners and Republican opponents.
Proposal to Raise Property Tax Limits Gains Traction
A key legislative committee took its first steps Tuesday toward rolling back a tax limitation that has been in place since voters approved it over two decades ago. House Bill 1334, introduced by Rep. Gerry Pollet, D-Seattle, would increase the current 1% cap on annual property tax increases to 3%.
Supporters say the change is long overdue. Cities and counties have been struggling to fund essential services, from public safety to road maintenance, with revenue growth effectively capped far below inflation. Pollet, speaking before the House Finance Committee, described the cap as an outdated constraint that has forced painful budget cuts.
“What else is capped at 1%? Nothing,” Pollet said, arguing that essential services have been hamstrung by the restriction.
The proposal is projected to generate approximately $818 million for state education funding and nearly $1 billion for local governments over four years, according to a fiscal analysis. With a projected $12 billion budget shortfall looming, the urgency for additional revenue sources has intensified.
Opposition Mounts as Homeowners Fear Higher Costs
Not everyone is on board. Republican lawmakers and homeowner advocacy groups have sounded alarms, warning that lifting the cap would put additional strain on already overburdened taxpayers.
Anthony Mixer, a representative from the Washington State Young Republicans, called the proposal a crushing blow to affordability.
“Young people are already struggling to buy a home,” Mixer said. “If they do manage to purchase one, this will make it even harder to afford living in it.”
Concerns about rising housing costs have been a recurring theme in legislative debates. Washington already has one of the highest property tax burdens in the country, and opponents fear that increasing allowable tax hikes could exacerbate the state’s affordability crisis.
A Renewed Legislative Battle After Past Setbacks
This isn’t the first attempt to alter the tax cap. Senate Democrats introduced a similar measure last year that would have allowed only local governments to exceed the 1% threshold. However, that bill faced intense opposition and was eventually scrapped.
Senate Majority Leader Jamie Pedersen, D-Seattle, acknowledged that lawmakers needed to do a better job explaining how the existing cap has hurt local government budgets. He noted that many cities and counties are struggling to fund critical services, including public safety and infrastructure maintenance.
“There’s a disconnect between the needs of local governments and public perception on taxation,” Pedersen said last year.
Tuesday’s hearings on House Bill 1334 and House Bill 1356, another proposal aimed at boosting school levy collections, marked the first major discussions on tax policy in this legislative session. Lawmakers are expected to take their time reviewing the measures, as tax bills necessary to balance the state budget are not subject to early session deadlines.
Democrats Seek Solutions for Budget Shortfall
With the state facing a $12 billion deficit over the next four years, Democratic lawmakers are weighing a mix of spending cuts and revenue increases. House Democratic Caucus Chair Lillian Ortiz-Self, D-Mukilteo, emphasized that everything remains on the table.
“We’re in a year where we have to explore all options — our cut options and our revenue options,” she said.
House Democrats planned to meet privately Tuesday evening to discuss their next steps, including potential strategies for securing enough support to pass the tax measure.
It remains unclear whether this latest push will succeed where past efforts have failed. But one thing is certain: the debate over property taxes in Washington isn’t going away anytime soon.
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