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

Washington’s Democratic lawmakers dropped their plan to raise the property tax growth limit from 1% to 3% in House Bill 2049 after facing significant opposition. Rep. Steve Bergquist, the bill's sponsor, amended it to remove the controversial tax increase, which was expected to be passed by the House. Governor Bob Ferguson's concerns prompted Democrats to reconsider, as he highlighted the need to reduce the financial burden on working families. This is the second tax proposal abandoned by lawmakers following Ferguson's input, reflecting ongoing tensions within the party about revenue strategies.

The revised bill will now concentrate on education funding and revised guidelines for local levies. City and county leaders expressed disappointment, stating the cap limits their ability to fund essential services like public safety. A fiscal analysis indicated that lifting the cap could have generated an additional $236 million for local governments. Since the cap was imposed in 2001, local leaders have struggled to maintain adequate funding for public services.