Washington Administrative Code
Title 458 - Revenue, Department of
Chapter 458-19 - Property tax levies, rates, and limits
Section 458-19-075 - Constitutional one percent limit calculation
Universal Citation: WA Admin Code 458-19-075
Current through Register Vol. 22-07, April 1, 2022
(1) Introduction. This rule explains how to determine if the constitutional one percent limit is being exceeded and the sequence in which levy rates will be reduced or eliminated in accordance with RCW 84.52.010 if the constitutional one percent limit is exceeded. The constitutional one percent calculation is made after the assessor ensures that the $5.90 statutory aggregate dollar rate limit is not exceeded. The total amount of all regular property tax levies that can be applied against taxable property is limited to one percent of the true and fair value of the property in money. The one percent limit is stated in Article VII, section 2 of the state Constitution and the enabling statute, RCW 84.52.050. The constitutional one percent limit is based on the amount of taxes actually levied on the true and fair value of the property, not the dollar rate used in calculating property taxes.
(2) Preliminary calculations. After reducing or eliminating the levy rates under RCW 84.52.043 (the $5.90 statutory aggregate dollar rate limit) has occurred, make the following calculations to determine if the constitutional one percent limit is being exceeded:
(a) First, add together all regular
levy rates in the tax code area, including the rates for the state levy, but
not the rates for port and public utility districts, to arrive at a combined
levy rate for that tax code area. "Regular levy rates" in this context means
the levy rates that remain after reduction or elimination under RCW 84.52.043 has occurred. The levy rates for port and public utility districts are not
included in this calculation because they are not subject to the constitutional
one percent limit.
(b) Second,
divide $10 by the higher of the real or personal property ratio of the county
for the assessment year in which the levy is made to determine the maximum
effective levy rate. If the combined levy rate exceeds the maximum effective
levy rate, then the individual levy rates must be reduced or eliminated until
the combined levy rate is equal to the maximum effective levy rate.
(3) Constitutional one percent limit. RCW 84.52.010 provides the order in which levy rates are to be reduced or eliminated when the constitutional one percent limit is exceeded.
As opposed to the order in RCW 84.52.010, which lists the taxing districts that are the first to have their levy rates reduced or eliminated, this rule is written in reverse order; that is, it lists the taxing districts that must be first either fully or partially funded. If the constitutional one percent limit is exceeded, then the levy rates for taxing districts within a particular tier must be reduced or eliminated on a pro rata basis.
If the constitutional one percent limit is exceeded after performing the preliminary calculations described in subsection (2) of this rule, the following levies must be reduced or eliminated until the combined levy rate no longer exceeds the maximum effective levy rate:
(a) Step one: Subtract the aggregate levy
rate calculated for the state for the support of common schools from the
effective rate limit.
(b) Step two:
Subtract the levy rates for the county, including the rate of any separate
property tax levy as described in RCW 84.55.135, county road district, regional
transit authority, and for city or town purposes.
(c) Step three: Subtract from the remaining
levy capacity the levy rates for fire protection districts under RCW 52.16.130,
regional fire protection service authorities under RCW 52.26.140(1)(a),
library districts under RCW 27.12.050 and 27.12.150, the first 50 cents per
$1,000 of assessed value for metropolitan park districts created before January
1, 2002, under RCW 35.61.210, and the first 50 cents per $1,000 of assessed
value for public hospital districts under RCW 70.44.060(6).
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing district at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis from the
remaining balance in step two until the balance is zero. After prorationing,
there is no remaining levy capacity for any other junior taxing districts at a
lower tier and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step four.
(d) Step four: Subtract from the
remaining levy capacity the levy rates for fire protection districts under RCW
52.16.140 and 52.16.160, and regional fire protection service authorities under
RCW 52.26.140(1)(b) and (c).
(i) If the
balance is zero, there is no remaining levy capacity for any other junior
taxing districts at a lower tier and their levies, if any, must be
eliminated.
(ii) If the balance is
less than zero, then the levies within this tier must be reduced on a pro rata
basis from the remaining balance in step three until the balance is zero. After
prorationing, there is no remaining levy capacity for any other junior taxing
district at a lower tier and their levies, if any, must be
eliminated.
(iii) If the remaining
balance is greater than zero, this amount is available to the remaining junior
taxing districts at a lower tier and the assessor should proceed on to step
five.
(e) Step five:
Subtract from the remaining levy capacity the levy rate for the first 50 cents
per $1,000 of assessed value of metropolitan park districts created on or after
January 1, 2002, under RCW 35.61.210.
(i) If
the balance is zero, there is no remaining levy capacity for any other junior
taxing districts at a lower tier and their levies, if any, must be
eliminated.
(ii) If the balance is
less than zero, then the levy is reduced to the remaining balance in step four.
There is no remaining levy capacity for any other junior taxing district at a
lower tier and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step six.
(f) Step six: Subtract from the
remaining levy capacity the levy rates for all other junior taxing districts if
those levies are not listed in steps three through five or steps seven through
eighteen of this subsection.
(i) If the
balance is zero, there is no remaining levy capacity for any other junior
taxing districts at a lower tier and their levies, if any, must be
eliminated.
(ii) If the balance is
less than zero, then the levies within this tier must be reduced on a pro rata
basis to the remaining balance in step five until the balance is zero. After
prorationing, there is no remaining levy capacity for any other junior taxing
district at a lower tier and their levies, if any, must be
eliminated.
(iii) If the remaining
balance is greater than zero, this amount is available to the remaining junior
taxing districts at a lower tier and the assessor should proceed on to step
seven.
(g) Step seven:
Subtract from the remaining levy capacity the levy rate for flood control zone
districts other than the portion of a levy protected under RCW 84.52.816.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levy is reduced to the remaining balance in step six. There is no remaining
levy capacity for any other junior taxing district at a lower tier and their
levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step eight.
(h) Step eight: Subtract from the
remaining levy capacity the levy rates for city transportation authorities
under RCW 35.95A.100, park and recreation service areas under RCW 36.68.525,
park and recreation districts under RCW 36.69.145, except a park and recreation
district located on an island and within a county with a population exceeding
2,000,000, and cultural arts, stadium, and convention districts under RCW
67.38.130.
(i) If the balance is zero, there
is no remaining levy capacity for any other junior taxing districts at a lower
tier and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis from the
remaining balance in step seven until the balance is zero. After prorationing,
there is no remaining levy capacity for any other junior taxing district at a
lower tier and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step nine.
(i) Step nine: Subtract from the
remaining levy capacity the levy imposed, if any, for cultural access programs
under RCW 36.160.080.
(i) If the balance is
zero, there is no remaining levy capacity from any other junior taxing
districts at a lower tier and their levies, if any, must be
eliminated.
(ii) If the balance is
less than zero, the levy is reduced to the remaining balance in step eight.
There is no remaining levy capacity for any other junior taxing districts at a
lower tier and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed to step ten.
(j) Step ten: Subtract from the remaining
levy capacity the levy rate for the first 30 cents per $1,000 for emergency
medical care or emergency medical services under RCW 84.52.069.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levy is reduced to the remaining balance in step nine. There is no
remaining levy capacity for any other junior taxing district at a lower tier
and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step eleven.
(k) Step eleven: Subtract from the
remaining levy capacity the levy rates for levies used for acquiring
conservation futures under RCW 84.34.230, financing affordable housing under
RCW 84.52.105, and any portion of a levy rate for emergency medical care or
emergency medical services under RCW 84.52.069 in excess of 30 cents per $1,000
of assessed value.
(i) If the balance is zero,
there is no remaining levy capacity for any other junior taxing districts at a
lower tier and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis from the
remaining balance in step ten until the balance is zero. After prorationing,
there is no remaining levy capacity for any other junior taxing district at a
lower tier and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step twelve.
(l) Step twelve: Subtract from the
remaining levy capacity the levies imposed under RCW 36.69.145 for a park and
recreation district located on an island and within a county with a population
exceeding 2,000,000.
(i) If the balance is
zero, there is no remaining levy capacity for any other junior taxing districts
at a lower tier and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the portion of the levy within this tier must be reduced to the remaining
balance in step eleven. There is no remaining levy capacity for any other
junior taxing district at a lower tier and their levies, if any, must be
eliminated.
(iii) If the remaining
balance is greater than zero, this amount is available to the remaining junior
taxing districts at a lower tier and the assessor should proceed on to step
thirteen.
(m) Step
thirteen: Subtract from the remaining levy capacity the portion of the levy by
a metropolitan park district with a population of 150,000 or more that is
protected under RCW 84.52.120.
(i) If the
balance is zero, there is no remaining levy capacity for any other junior
taxing districts at a lower tier and their levies, if any, must be
eliminated.
(ii) If the balance is
less than zero, then the portion of the levy within this tier must be reduced
to the remaining balance in step twelve. There is no remaining levy capacity
for any other junior taxing district at a lower tier and their levies, if any,
must be eliminated.
(iii) If the
remaining balance is greater than zero, this amount is available to the
remaining junior taxing districts at a lower tier and the assessor should
proceed on to step fourteen.
(n) Step fourteen: Subtract from the
remaining levy capacity the levy rates for county ferry districts under RCW
36.54.130.
(i) If the balance is zero, there
is no remaining levy capacity for any other junior taxing districts at a lower
tier and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levy is reduced to the remaining balance in step thirteen. There is no
remaining levy capacity for any other junior taxing district at a lower tier
and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step fifteen.
(o) Step fifteen: Subtract from
the remaining levy capacity the levy rate for criminal justice purposes imposed
under RCW 84.52.135.
(i) If the balance is
zero, there is no remaining levy capacity for any other junior taxing districts
at a lower tier and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levy is reduced to the remaining balance in step fourteen. There is no
remaining levy capacity for any other junior taxing district at a lower tier
and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step sixteen.
(p) Step sixteen: Subtract from
the remaining levy capacity the levy rate for a fire protection district or
regional fire protection service authority protected under RCW 84.52.125.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the portion of the levy within this tier must be reduced to the remaining
balance in step fifteen. There is no remaining levy capacity for any other
junior taxing district at a lower tier and their levies, if any, must be
eliminated.
(iii) If the remaining
balance is greater than zero, this amount is available to the remaining junior
taxing districts at a lower tier and the assessor should proceed on to step
seventeen.
(q) Step
seventeen: Subtract from the remaining levy capacity the levy rate for
transit-related purposes by a county under RCW 84.52.140.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levy is reduced to the remaining balance in step sixteen. There is no
remaining levy capacity for any other junior taxing district at a lower tier
and their levies, if any, must be eliminated.
(iii) If the remaining balance is greater
than zero, this amount is available to the remaining junior taxing districts at
a lower tier and the assessor should proceed on to step eighteen.
(r) Step eighteen: Subtract from
the remaining levy capacity the protected portion of the levy imposed under RCW
84.52.816 by a flood control zone district until the remaining levy capacity
equals zero.
Wash. Admin. Code § 458-19-075
Amended by WSR 14-14-023, Filed 6/23/2014, effective 7/24/2014
Amended by WSR 16-02-126, Filed 1/6/2016, effective 2/6/2016
Amended by WSR 18-04-006, Filed 1/25/2018, effective 2/25/2018
Amended by WSR 20-24-065, Filed 11/24/2020, effective 12/25/2020
Amended by WSR 22-04-023, Filed 1/24/2022, effective 2/24/2022
Statutory Authority: RCW 84.08.070, 84.34.141, 84.36.865, 84.52.0502. 09-19-010, § 458-19-075, filed 9/3/09, effective 10/4/09. Statutory Authority: RCW 84.52.010, 84.52.043, and 84.52.0502. 06-02-008, § 458-19-075, filed 12/22/05, effective 1/22/06. 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, § 458-19-075, filed 11/25/02, effective 12/26/02. Statutory Authority: RCW 84.55.060 and 84.08.070. 94-07-066, § 458-19-075, filed 3/14/94, effective 4/14/94.
This section was updated on 3/4/2022 by an editor because it was made effective.
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