Last week marked both highs and lows for SB 5770 which would have revised the outdated 1% property tax cap and instead tied the cap for local governments to inflation (CPI) up to 3%.

The bill passed out of the Ways & Means Committee on Monday and appeared headed for a vote by the full Senate on Thursday. However, before it could be brought up for a vote, it was brought down by strong anti-tax rhetoric from Republicans and the Association of Washington Business (AWB), as well as other business groups like the Building Industry Association of Washington (BIAW). The effort to make the modest change from an arbitrary 1% cap to a cap tied to the Consumer Price Index (CPI) not to exceed 3% was labeled as a tripling of the tax, blamed for increasing rents, and marked with the hashtag #stopthegreed on social media. The Senate Republican Caucus held a news conference opposing the bill on Thursday morning. You can watch it here via TVW. For more on the decision, read this article.

Revising the property tax cap to something that made fiscal sense was adopted as an AWC legislative priority by AWC’s Board in an effort to address long-term structural deficits in funding for cities. AWC is grateful to the many local city elected officials who made the effort to reach out to their legislators and explain why SB 5770 was a modest, common-sense update to an outdated cap adopted more than 20 years ago. We also appreciate all of the city officials who added their names to our letter of support. We want to thank Sen. Jamie Pedersen (D-Seattle) for his leadership in sponsoring the bill.

Unfortunately, once again, city leaders are being told that the time isn’t right to change the arbitrary 1% cap.

City leaders will need to continue working throughout the year to help legislators understand that cities simply can’t keep up with the rising cost of providing crucial services like police, fire, and streets while the legislature limits the ability to adequately fund those services.

AWC priority property tax cap revision passed out of committee – Ask your senator for support

February 6, 2024

The Senate Ways & Means Committee voted to move AWC’s priority bill to revise the arbitrary property tax cap (SB 5770) out of committee on February 5, and the bill is now in the Rules Committee awaiting further action. This is a significant step towards addressing the current artificial limit on local revenues that cannot keep pace with service costs and revising the cap to tie it to inflation, up to 3%.

While the bill could be related to budget and exempt from legislative deadlines, otherwise there is a just a week before bills must pass off the Senate floor.  Talk to your Legislators now and ask them to give local governments this authority to work with our communities to address their service needs.

If you have not already, join the coalition of city officials who have signed on to the city letter asking the Legislature to take necessary action on SB 5770 to revise the arbitrary property tax cap. Use this form to add your name to the letter.

AWC priority property tax cap revision scheduled to pass out of committee – ask your Senator for support

February 5, 2024

The Senate Ways & Means Committee is expected to move AWC’s priority bill to revise the arbitrary property tax cap (SB 5770) out of committee on February 5. This is a significant step towards addressing the current artificial limit on local revenues that cannot keep pace with service costs and revising the cap to tie it to inflation, up to 3%.

There is a just a week before the bill must pass off the Senate floor.  Talk to your Legislators now and ask them to give local governments this authority to work with our communities to address their service needs.

Read the letter showing strong city support for AWC’s priority to revise the property tax cap

January 29, 2024

Thanks to the more than 150 city officials representing over 90 cities who signed the city letter in support of revising the 1% property tax cap. While SB 5770 is not yet scheduled for further action this week, we are hopeful that this strong support will convince them that cities cannot wait another generation to address this limitation on the ability to address the needs of our communities.

In addition, reach out to your legislators and let them know that cities support moving the bill forward this session. SB 5770 is a needed fix to the outdated and arbitrary 1% cap that allows local government to work with their cities to address increased costs of services and provide the services citizens need.

Deadline extended to sign city letter supporting AWC priority to revise arbitrary property tax cap

January 21, 2024

The deadline has been extended to sign the city letter in support of SB 5770, AWC’s priority legislation to revise the arbitrary property tax cap. If you haven’t already done so, fill out this form to add your signature to the letter no later than noon on January 25. A strong showing of city official support is needed to make a difference.

Thanks to all the cities that testified or signed in support of SB 5770 in the Senate Ways & Means Committee hearing on January 18. The policy bill deadline is January 31, so time is short for the committee to keep the bill moving.

In addition to signing the letter, reach out to your legislators and let them know that cities can’t wait another generation to fix this structural gap in revenues that is limiting our ability to respond to community needs and new demands for services. SB 5770 revises the outdated and arbitrary 1% cap and instead ties the property tax cap to inflation up to a maximum of 3%. This modest update will give local elected officials more flexibility to fund the critical services residents need.

Watch this brief video, where AWC Director of Government Relations Candice Bock explains the bill, addresses common concerns, and shares what members can do to get involved in supporting SB 5770.

We need your support two ways this week to revise arbitrary property tax cap

January 12, 2024

AWC’s priority to revise the arbitrary property tax cap (SB 5770) will be heard in the Senate Ways & Means Committee Thursday at 4 pm. This is a major step forward for consideration by the Senate of this proposal. We need you to show your support in two ways.

First, show your support at the hearing on Thursday by signing-in to support it or providing written testimony.

You may register as support until one hour prior to the hearing (3 pm deadline for the 4 pm hearing). Go to the sign in page where you can sign in “Pro” under the option “I would like my position noted for the legislative record.”

1. Select Ways & Means Committee for January 18.
2. Click on the box next to SB 5770.
3. Note your position of “pro” for the record.

Submit written testimony up to 24 hours after the start of (deadline would be 4 pm on Friday, January 19) the hearing by selecting “I would like to submit written testimony.”

Second, join a large coalition supporting this bill by signing a letter in support of legislative action by the Senate on this modest fix in 2024. Add your signature to the letter by noon on January 18.

Let legislators know that cities can’t wait for another generation to fix this structural gap in revenues that limits our ability to respond to community needs and new demands for services.

Key messages:

• The outdated 1% cap is an arbitrary number that does not keep pace with city expenses.
• Lifting the property tax cap to a 3% limit is a modest compromise to increase funding flexibility, support local decisions, and preserve critical city services.
• The average CPI over the last ten years was 3%.

Dates to remember

SB 5770 is scheduled for public hearing in the Senate Ways & Means Committee on Thursday, January 18 at 4 pm.

Coalition forms to support revising the local property tax cap

January 5, 2024

AWC has prioritized revising the arbitrary 1% property tax cap for the 2024 legislative session. We have been joined by a large coalition made up of other local government associations, a variety of labor organizations, as well as individual cities and counties. The coalition has developed this summary to outline their support.

AWC and the coalition members will be focusing on advancing SB 5770 which was introduced by Senator Pedersen (D–Seattle) and a number of cosponsors late in the 2023 session. The bill will need to be heard and passed out of the Senate Ways & Means Committee.

AWC has updated the fact sheet on the need to update the property tax cap. We encourage cities to use this as a resource when talking with your legislators. In our most recent City Conditions Survey half of the respondents indicated that their city revenues weren’t keeping up with increasing costs, and 64% of respondents supported revising the property tax cap.