SSB 5894, which makes changes to the firefighters’ pension levy, passed the House with amendments to ensure that cities retained the necessary flexibility over their property tax authority. However, the Senate refused to concur with the House amendment. The bill now goes back to the House where the House can either recede from its changes or insist and send the bill back to the Senate. AWC is encouraging the House to stand firm and insist on its version of the bill.
Approximately 40 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 are met.
When the bill was heard in the House Appropriations Committee, AWC requested that it be clarified to retain language allowing the revenue to be spent on LEOFF 1 retiree medical costs and other municipal purposes. This 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.