We appreciate the cities that signed in support and/or testified on behalf of this important proposal last week, and it’s not too late to weigh in. We are seeking your help with making sure your legislators know why cities support this issue and help busting some common myths.

Watch this video to see AWC and city testimony on TVW.

It’s not too late to tell your legislators how this proposal would positively impact your city. If you didn’t get the chance to have your voice heard yet, the best thing you can do is reach out to your Representatives and let them know this is an issue that your city strongly supports. You’re also still able to submit your written testimony on the bill. Talk about how this lift could help your city and review our prior article below for more information and talking points.

It’s not too late to tell your legislators how this proposal would positively impact your city.

Three common myths and how to bust them

As with last year, as this issue gains legislative and media attention, it also picks up speed on a few pernicious myths. Make sure that when you’re talking to legislators, other city officials, and constituents, you bust any misconceptions that you may hear. This is decidedly a complex issue, so here are some tips for common myth-busters to help you:

• No, it doesn’t triple property taxes: Going from a 1% revenue cap to 3% does not triple property taxes, as some might imply. As the bill is written, it changes the 101 percent revenue growth limit for state and local property taxes to 100 percent, plus population change and inflation, with a capped limit of 103 percent. 101% to 103% is not triple. Further, lifting a city’s revenue cap means that the increased cost for an average homeowner is generally less than $20 per year on average.
• No, it’s not an automatic tax increase: It simply gives the option for an elected city council to make the decision to take it or not, based on local circumstances. Even now, not all jurisdictions take the current 1% increase each year. For some communities, this potential change (to an arbitrary limit put in place a generation ago) to allow a local increase would be a lifeline to support critical services.
• No, it’s not undermining the voters: The voters elected city leaders to make local decisions on their behalf, and city elected officials are immediately responsive to the needs of their constituents. This local option empowers city elected leaders to make decisions close to home on behalf of their residents who delegated them such decision-making power in the first place.

We are very closely following this issue and expect to get another opportunity to weigh in, either on this bill or another proposal down the stretch.

AWC legislative priority to revise the arbitrary property tax cap gets time in the spotlight

February 7, 2025

HB 1334, a priority bill for AWC, aims to change the local 1% property tax limit to better match fluctuations in population and inflation, but not to exceed 3%. The bill is sponsored by Rep. Gerry Pollet (D–Seattle) and will be heard in House Finance Committee on Tuesday morning.

Find information and materials below to help you show support for the bill and help tell your legislators how important this issue is to our communities.

Sign-in as pro to show your support

We encourage city officials to sign-in as “pro” for the legislative record to show your support. While we still expect other versions of this bill to appear this legislative session, cities support HB 1334.

Communications materials

As one of our legislative priorities, AWC has been working on this issue for many years. Recently, in efforts to get out in front of persistent misinformation about what the property tax cap is and how it impacts cities and other property tax-reliant entities, we have been working with a broad coalition of supporters to share accurate information about this decidedly complex issue. View the materials below and share them with your legislators.

• Video: Watch our new explainer video that dives into the issue and examines why cities need this vital funding option now;
• City fact sheet: Read AWC’s updated fact sheet on this legislative priority;
• Coalition support: See who signed on to our broad coalition in support of this issue; and
• Tacoma News Tribune op-ed: Catch this op-ed where three local elected officials shared why this is critically needed funding.

What the bill does

As written, the bill proposes to:

• Adjust the property tax growth limit factor: The current limit restricts property tax revenue growth to 1% annually for most taxing districts (except for the state). HB 1334 proposes adjusting this limit to account for both inflation and population change, with a maximum cap of 3%.
• Redefine “inflation" to include geography: This updates where inflation data comes from. The annual percentage increase in the Consumer Price Index (CPI), also often referred to as “inflation,” would become more specific to eight states and one territory in the western United States, called CPI-U Western.
• Clarify population change data: Specifies population change as the annual percent increase in a taxing district's population based on Office of Financial Management (OFM) official estimates each April 1.

The bill would impact taxes levied in 2026 and after.

Talking points

It’s best to share your city’s local story, bolstered by facts and information that line up with what other local entities are saying. You can find information and talking points in the fact sheets linked above, but here are also a few messages summarized below.

• The cap isn’t connected to real data: The arbitrary 1% cap does not keep up with population growth and inflation. In the last decade, population in Washington has increased on average 1.5% per year, while inflation averages 3% per year.
• It’s optional: Lifting the property tax cap is not an automatic tax increase. It simply gives the option for an elected city council to make the decision to take it or not, based on local circumstances. Even now, not all jurisdictions take the current 1% increase each year. Providing the 3% option gives flexibility to the jurisdictions to balance their revenues to meet their hyperlocal community needs.
• It’s local: Cities receive just 11 cents on each property tax dollar collected. The increase that local governments seek is focused on the small local portion of the tax cap. Some communities are in dire need of critical local funding, and this option could really help them.
• It’s modest: Going from a 1% revenue cap to 3% does not triple property taxes, as some might imply. Increasing a city’s revenue cap means that the increased cost for an average homeowner is generally less than $20 per year on average. This small and sensible increased cap would have a modest, but meaningful, impact on local budgets.

Contact your Representatives to let them know you support voting this bill out of committee. Reach out to us if you have questions or want to know how you can get more involved.

Dates to remember

HB 1334 is scheduled for a public hearing in the House Finance Committee on Tuesday, February 11 at 8 am.