Bill changing firefighters’ pension levy spending options passes House

by <a href="mailto:candiceb@awcnet.org">Candice Bock</a> | Apr 12, 2019
<a href="https://app.leg.wa.gov/billsummary?BillNumber=5894&amp;Year=2019&amp;Initiative=false" target="_blank"><strong>SSB 5894</strong></a>, which would make changes to the firefighters&rsquo; pension levy, passed the House last week.

SSB 5894, which would make changes to the firefighters’ pension levy, passed the House last week.

Approximately 44 cities and towns are eligible to impose the levy under RCW 41.16.060. Municipalities may impose a pension levy rate up to $0.225 per $1,000 of assessed value. The original purpose of the tax was to cover the costs of pre-LEOFF firefighter pensions provided by individual cities. The existing statute allows the levy revenue to be used for those pension costs as well as other municipal purposes if the pension obligations were met.

SSB 5894, as it passed the Senate:

  • Clarified that cities may continue to impose the levy even if all of the pre-LEOFF beneficiaries are deceased; and
  • Required that, if the levy is continued, all of the revenue must be used to cover medical benefits for LEOFF 1 retirees.

When the bill was heard in the House Appropriations Committee, AWC requested that it be clarified to retain the language allowing the revenue to be spent on LEOFF 1 retiree medical costs and other municipal purposes. The reason was to ensure that cities retain flexibility given the difficulties in differentiating the levy tax rate within a city’s overall property tax rate.

The version of the bill that passed the House:

  • Clarifies that cities may continue to impose the levy even if all of the pre-LEOFF beneficiaries are deceased;
  • Requires that, if the levy is continued, the revenue must be used to cover medical benefits for LEOFF 1 retirees and other municipal purposes; and
  • Clarifies that the levy expires when there are no longer any LEOFF 1 retiree medical obligations.

The bill now goes back to the Senate for concurrence.

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