The bill, sponsored by Rep. Ormsby (D–Spokane), revises the property tax cap for local governments to account for inflation and population growth up to three percent (HB 1670). Changing the cap on property taxes to tie it to inflation and population growth is a proposal AWC has supported for several years and would help cities keep up with the increasing costs of services.

In a recent public opinion survey commissioned by AWC, 72% of respondents indicated support for a 3% cap on property taxes. We encourage city officials to talk to your legislators about the need for this local revenue flexibility.

The proposal was one of the recommendations of the State Tax Structure Work Group and would be limited to local government levies. The state property tax levy limit would remain one percent. The other work group recommendation related to replacing the state B&O tax with a margins tax was heard last week.