HomeMy WebLinkAboutOnePager_Homestead_Property_Tax_FlexPrimary Residence Homestead + Local Levy Flexibility
Prepared for the Jefferson County Housing Task Force • Planning Group Discussion
The idea
Modernize the 1% annual regular levy growth limit in RCW 84.55.010 – 101% levy limit (1% growth)
by allowing local governments to grow by inflation + population (capped at ~3%), while protecting
owner-occupied primary residences with a homestead-style benefit. This shifts the relative burden
toward non-owner-occupied (second/third) homes without a stand-alone vacancy tax.
Two legal paths
•Path A – Constitutional amendment (cleaner on-bill homestead). Washington’s uniformity
rule in WA Constitution – Art. VII (uniformity) prevents different tax treatment for primary
residences. A homestead authorization requires an amendment (see WA Constitution – Art. XXIII
(amendments)). Use SJR 8203 (2025) – principal residence exemption (homestead) proposal as
a model to permit a principal residence exemption; implement via HB 2024 (2025) – principal
residence exemption (implementing bill)-style bill with Department of Revenue (DOR) attestation,
verification, and a school funding hold-harmless. Precedent for a constitutional carve-out: senior/
disabled relief in WA Constitution – Art. VII §10 (senior/disabled relief) and RCW 84.36.381 –
senior/disabled property tax exemption.
•Path B – No amendment (uniformity preserved). Keep the tax uniform but deliver relief off-bill
via a state-funded homestead credit or use/expand property tax deferrals (RCW 84.37 –property
tax deferral for limited income homeowners, RCW 84.38 – property tax deferral for seniors/
disabled). DOR would run an owner-occupied attestation and issue the credit/refund; counties’
administration burden stays low.
Benefits
•Protects primary-residence homeowners while aligning local revenues with inflation and
population growth.
•Tilts effective burden away from owner-occupied homes and toward non-owner occupied
property without a separate vacancy tax.
•Uses tested administrative models (DOR attestation; verification) and draws on 2023–25 bill
language.
Risks & mitigations
•Constitutional risk if mis-drafted ® use amendment authority (Path A) and mirror proposed SJR
language.
•Administrative integrity ® rely on DOR verification (license/voter registration/utility address),
penalties for false claims.
Primary Residence Homestead + Local Levy Flexibility
Prepared for planning discussion; policy research only – not legal advice.Page 2
•Renter pass-through risk ® pair with a state circuit-breaker or renter rebate to cushion
low-income tenants.
•School-funding optics ® include hold -harmless adjustments as in SJR proposals.
What we would ask Olympia
•Re-file levy-growth modernization (HB 1670/SB 5770 lineage: inflation + population, capped at
~3%). See HB 1670 (2023–24) – levy limit factor modernization and SB 5770 (2024) – levy limit
factor (Senate).
•Refer a homestead constitutional amendment (SJR 8203-style) and pass an implementing bill
(HB 2024-style) with DOR administration.
•If the amendment lags, enact a state homestead credit or expand deferrals to protect primary
residences while levy modernization proceeds.
Hyperlinked bibliography
•RCW 84.55.010 – 101% levy limit
•WA Constitution – Article VII (uniformity) & §10 (senior/disabled relief)
•WA Constitution – Article XXIII (amendment process)
•HB 1670 (2023–24) – levy limit factor modernization
•SB 5770 (2024) – levy limit factor modernization
•SJR 8203 (2025) – principal residence exemption (homestead) proposal
•HB 2024 (2025) – principal residence exemption (implementing bill)
•RCW 84.36.381 – senior/disabled exemption (statutory)
•RCW 84.37 & RCW 84.38 – property tax deferrals