WA Democrats back bill to raise revenue. But critics say folks ‘not in the mood’ for more taxes

“Nothing is certain except for death and taxes” — and fierce resistance to raising them. Such tax-hike aversion was on display Tuesday at the state Capitol at a public hearing on a bill that would govern property taxes.

House Bill 1334 would link the property-tax cap to population growth and inflation, raising the limit on annual increases from 1% to 3%. Although the bill generated broad support from Washington county and city officials, it has also sparked heated opposition from some taxpayers and conservatives.

The bill’s sponsor, state Rep. Gerry Pollet, told the House Finance Committee that lawmakers’ main duty is to amply fund public education. They’re also tasked with providing local governments with resources to protect public safety and health.

Advocates contend the bill is needed to help government adequately fund struggling schools and essential services.

“And all of these duties have literally been kneecapped by a 1% cap on revenue growth,” the Seattle Democrat said. “What else is capped at 1%? Nothing. Inflation eats up every year into that revenue growth.”

The country’s annual inflation rate was nearly 3% in December 2024, according to the US Inflation Calculator website.

But critics say the bill would hurt homeowners who are already wrestling with inflation and creeping utility, gas and food costs.

Pollet noted that a 3% growth factor doesn’t mean a 3% jump in residential property taxes. Rather, it means the total tax levy growth in a jurisdiction can be raised by that much. Residents’ individual taxes will often be less because growth and development raises the community’s overall property value, he said.

Pollet told McClatchy after the hearing that as inflation and population rates climb, counties and the state are falling further behind in meeting basic obligations.

“If we want to fund our schools, the property tax is the base funding mechanism,” Pollet said. “And allowing it to grow by population and inflation capped at 3% will literally produce enough money in just a few years to restore some of the most fundamental, basic constitutional rights of our students.”

On Tuesday, mayors and members of various local councils testified in support of the bill, including Snohomish County Council member Megan Dunn. With the current 1% cap, Washington counties are being left behind by rising costs, she said.

“Our finance team has calculated that, based on conditions in 2024, for every 1% change, the county portion of the tax amounts to about $3 a year on the average home valued at $660,000,” Dunn said. “So we’re asking for about a $3 year-over-year increase.”

Certain housing-industry groups, like the Building Industry Association of Washington, spoke out against the bill, highlighting the ongoing affordability crisis. Yet Pollet said during the interview that it’s a “laughable argument” to say a $3 boost in property taxes would harm affordable housing.

What do Democrats say about HB 1334?

House Majority Leader Joe Fitzgibbon said at a Tuesday media availability that lawmakers often hear concerns that police and sheriff’s departments are inadequately staffed.

To provide ample police protection, local governments need sufficient revenue, the West Seattle Democrat said.

He also pointed out that while Republicans are arguing that a proposed 7% rent cap is too low, they’re also complaining that the 3% property-tax cap is too high. “ I don’t know how they square that.”

Senate Majority Leader Jamie Pedersen sponsored similar legislation last session that Democrats ultimately ditched. On Tuesday, he said lawmakers have heard from folks with worries about the property-tax burden.

“We are actively exploring the possibility of creating a primary-residence property tax exemption that would help out real human beings who own their houses,” he said, “and shift more of the burden onto people who own mansions, people who own second homes, large commercial enterprises that right now are not paying their fair share, but are also benefited by this 1% cap.”

People struggle to understand the math around property taxes, Pedersen said. Some have incorrectly claimed that lawmakers are trying to triple property taxes, meaning someone paying $15,000 annually might think they’ll soon owe $45,000.

In reality, Pedersen said, lawmakers are looking at increasing a relatively small share of the property taxes — just the base property taxes imposed by cities, counties and the state. “Not the school district ones, which are voter-approved. Not the ones for all of the special levies from the city and the county that the voters approve.”

“So only that small slice would go up by 3% instead of 1%,” Pedersen said. “In fact, the experience that people would have on their property tax bill is relatively small, but it’s complicated to explain that.”

According to the Association of Washington Cities, the average homeowner would generally see less than $20 in annual raised costs with an increase to a city’s revenue cap.

What do Republicans say about HB 1334?

At Tuesday’s hearing, initiative activist Tim Eyman decried the bill. Eyman was behind 2001’s Initiative 747, which imposed the 1% cap on property-tax collections unless voters agreed to a higher bump. After the state Supreme Court in 2007 struck the initiative down, the Legislature then passed it into law.

“Governor Gregoire talked about how by signing this bill, we’re going to save the American dream, where you can buy a home and stay in that home until you retire, be able to retire in the state of Washington,” Eyman said. “What she said then is just as true today.”

Senate Republican Leader John Braun said during a media availability Tuesday that renters and homeowners statewide are feeling the burden of property taxes. Raising them is a bad idea, he said, and Washingtonians understand that.

Braun also pointed to a recent business-sponsored poll that found 76% of voters think the Legislature already has the funding it needs to address critical issues. More taxes could spike the cost of living, and renters could feel it too if the costs trickle down to them.

“So people are not in the mood for more taxes,” the Centralia Republican said.

House Republican Caucus Chair Peter Abbarno, also from Centralia, indicated that there isn’t support in his caucus for the measure. He said when he hears from constituents, the No. 1 thing they want to see is reduced taxes, particularly property taxes.

Waitsburg state Sen. Perry Dozier, the assistant Republican leader on the capital budget, said this proposal isn’t something that the state needs to pass. Rather, local jurisdictions can put it on the ballot themselves and let their residents decide.

“Even when I was a (Walla Walla County) commissioner and we didn’t take the 1% increase, people would complain about ‘my taxes going up’ all the time,” Dozier said. “You give the ability to keep raising them up to 3%, and this isn’t the right climate to be taking more from people with the inflation, the affordability that we have in Washington state.”