Current through Register Vol. 23-24, December 15, 2023
(1)
Introduction. This rule
explains the general method used to calculate the levy limit for regular
property tax levies for taxing districts, other than the state, in accordance
with
RCW
84.55.092 and
84.55.120.
Except for the state levy, the same method is generally used to calculate the
amount of regular property taxes that can be levied by a taxing district in any
year. This rule also describes what occurs when a taxing district makes a
finding of substantial need in accordance with
RCW
84.55.0101 to use a limit factor in excess of
100 percent plus inflation. This rule does not attempt to include all special
circumstances, such as the reduction in the levy limit for cities and towns
that form a fire protection district under
RCW
52.02.160, which may affect the applicable
limit under chapter 84.55 RCW.
(2)
Increase in tax revenues - Ordinance or resolution required. The
following describes the ordinance or resolution required by taxing districts
when requesting increases in tax revenues.
(a)
Except by holding a public hearing and adopting an ordinance or resolution, no
taxing district, other than the state, may authorize an increase in property
tax revenue, other than one resulting from an increase in assessed value of the
district attributable to:
(i) New
construction;
(ii) Improvements to
property;
(iii) Increases in the
assessed value of state assessed property;
(iv) Increases in assessed value due to the
construction of wind turbine, solar, biomass, and geothermal facilities, if
such facilities generate electricity and the property is not included elsewhere
under chapter 84.55 RCW for purposes of providing an additional dollar amount.
The property may be classified as real or personal property; and
(v) Increases in assessed value of real
property within an increment area designated by a local government pursuant to
chapter 39.114 RCW, provided the increase is not included elsewhere in the levy
limit calculation. This subsection (2)(a)(v) does not apply to:
(A) Levies by the state;
(B) Levies by a port district for purposes of
making required payments of principal and interest on general indebtedness;
and
(C) Levies by a public utility
district for purposes of making required payments of principal and interest on
general indebtedness.
(b) The ordinance or resolution may cover a
period of up to two years, but the ordinance or resolution must specifically
state for each year the dollar increase and percentage change in the levy from
the previous year. The dollar increase and percentage change should reflect
everything included in the levy limit and should not reflect anything excluded
under chapter 84.55 RCW (such as, but not limited to, a levy for property tax
refunds paid under the provisions of chapter 84.68 or 84.69 RCW).
(c) A majority of the legislative authority
of a taxing district must approve the ordinance or resolution authorizing an
increase in the taxing district's levy as calculated in subsection (3) of this
rule.
(d) Upon making a finding of
substantial need to increase its levy by an amount greater than the rate of
inflation, the legislative authority of a taxing district may adopt a second
ordinance or resolution establishing a limit factor greater than 100 percent
plus inflation. But the substantial need limit factor can never exceed 101
percent.
(i) In districts with legislative
authorities of four members or less, two-thirds of the members must approve an
ordinance or resolution supporting a substantial need to increase the limit
factor.
(ii) In districts with more
than four members, a majority plus one must approve an ordinance or resolution
supporting a substantial need to increase the limit factor.
(3)
Calculation
of levy limit for all taxing districts other than the state. The amount
of regular property taxes that can be levied by a taxing district, other than
the state, in any year is limited to an amount that will not exceed the amount
resulting from the following calculation, except as otherwise provided by
statute:
(a) The highest amount that could
have been lawfully levied by the taxing district in any year since 1985 for
1986 collection, multiplied by the limit factor, excluding any increase due to
(b)(v) of this subsection, unless the highest levy was the statutory maximum
rate amount, plus;
(b) A dollar
amount calculated by multiplying the regular property tax levy rate of the
district for the preceding year, or the last year the taxing district levied
taxes, by the increase in assessed value of the district resulting from:
(i) New construction;
(ii) Improvements to property;
(iii) Increases in the assessed value of
state assessed property;
(iv)
Increases in assessed value due to the construction of wind turbine, solar,
biomass, and geothermal facilities, if such facilities generate electricity and
the property is not included elsewhere under chapter 84.55 RCW for purposes of
providing an additional dollar amount. The property may be classified as real
or personal property; and
(v)
Increases in assessed value of real property within an increment area
designated by a local government pursuant to chapter 39.114 RCW, provided the
increase is not included elsewhere in the levy limit calculation. This
subsection (3)(b)(v) does not apply to:
(A)
Levies by the state;
(B) Levies by
a port district for purposes of making required payments of principal and
interest on general indebtedness; and
(C) Levies by a public utility district for
purposes of making required payments of principal and interest on general
indebtedness.
(4)
Calculation of levy limit for the
state levy. The levy limit for the state is calculated according to WAC
458-19-550.
Amended by
WSR
15-03-087, Filed 1/21/2015, effective
2/21/2015
Amended by
WSR
18-14-095, Filed 7/3/2018, effective
8/3/2018
Amended by
WSR
22-04-023, Filed 1/24/2022, effective
2/24/2022
Statutory Authority:
RCW
84.08.010,
84.08.070,
84.48.080,
84.55.060,
84.52.0502,
chapters
84.52 and 84.55 RCW, and
RCW
34.05.230(1). 02-24-015,
§ 458-19-020, filed 11/25/02, effective 12/26/02. Statutory Authority:
RCW
84.55.060 and
84.08.070. 94-07-066, §
458-19-020, filed 3/14/94, effective
4/14/94.