Unhappy about rising Washington property taxes? Here’s how it happened

For Pierce County property owners, the past few years have felt like a rollercoaster ride. There was a decrease in property taxes in 2019, only to have them substantially rise in 2020. There are three main reasons for the increases, and two involve decisions made in the Legislature.

First of all, the Democratic majority, which controls the House and Senate, last year voted to raise the local school-levy lid to $2.50 per $1,000 assessed value, starting this year, in 2020 – up from the rate of $1.50 per $1,000 that had so recently provided tax relief.

This equates to a $300 property tax hike on a $300,000 home. In many school districts, the increase automatically went into effect (meaning without voter action). Despite having access to record amounts of revenue, nearly $4 billion in new revenue in 2019, my colleagues across the aisle chose to go backwards and raise local property taxes.

Not only did this increase the cost of housing to property owners and renters, raising the school-levy lid risks putting our state back in the inequitable situation that many legislators worked hard to overcome in the course of responding to the state Supreme Court’s McCleary ruling on education funding.

It opens the door to once again giving school districts with high property values an unfair advantage over those with lower values, which translates to inequitable educational opportunities for their respective students.

The second reason for higher property taxes is a 30-cent increase in the state property tax (from $2.40 during the one-year reprieve after the ‘McCleary Fix’ to $2.70 per $1,000 assessed value) this year. This is equal to a $90 property- tax increase on a $300,000 home.

What caused the state portion to rise? In 2017, the Legislature raised the state property tax from $1.89 to $2.70, while simultaneously lowering the maximum local school levy rate from as much as $4 in Pierce County. This had the net effect of lowering property taxes in most Pierce County school districts, and I supported it.

However, because as I indicated above, my friends across the aisle later raised the local levy lid back up to $2.50 per $1,000, effective 2020, the net effect is to bump up both the local levy and the state property taxes.

The third reason involves voter-approved ballot measures. Various taxing districts (Sound Transit, school, fire, hospital and library, to name a few) have sought and obtained voter approval to levy higher property taxes. When voters approve these measures, the result is a higher individual property-tax burden.

I have co-sponsored legislation to lower the property-tax burden. Senate Joint Resolution 8208 would exempt the first $100,000 of a homeowner’s value from state property taxes. Senate Bill 5609 would cap state spending growth at the rate of population plus inflation, with excess revenues returned to taxpayers in the form of a property-tax cut.

I have also sponsored SB 6108 to eliminate the Sound Transit property tax. This legislation would give property owners another chance at the tax relief they deserve.

Washington state Sen. Steve O’Ban, R-Tacoma, represents the 28th Legislative District. Reach him at steve.oban@leg.wa.gov

This story was originally published February 23, 2020 at 12:00 PM.