Plan to raise cap on property tax growth collapses in WA Legislature

Washington's Democratic lawmakers have abandoned their effort to increase the property tax growth limit from 1% to 3%, a controversial initiative aimed at generating revenue for education and local services. Governor Bob Ferguson's concerns prompted the decision, leading to an amendment in House Bill 2049 that removes the growth limit sections. The House is set to pass the revised bill, which now focuses solely on education funding and local levy guidelines. This withdrawal follows Ferguson's earlier rejection of a proposed tax on individuals with significant financial assets. Critics, including Republican leaders, argued that the increase would escalate living costs and expressed approval of its removal.

Local leaders have voiced frustration over budget shortfalls caused by the long-standing 1% cap, which limits property tax revenue growth. A fiscal analysis indicated that lifting the cap could potentially yield an extra $236 million for local governments. The ongoing struggle for adequate funding illustrates the challenges faced by city and county leaders in meeting essential public service needs.