Assessor's Office

Levy Limitations

Overview

The Assessor's Office must determine the property tax base for each taxing district and ensure that district levies are not more than allowed by law.

Regular levies are subject to various limitations. Excess levies are determined by the voters and are not included in these levy limitations. Pro-rating occurs when one or more taxing districts has the same statutory right to levy for taxes. Levy rates are limited by either the $5.90 or the 1% constitutional limit. RCW 39.67.010 and .020 allow taxing districts to contract or transfer funds between the districts for the purpose of reducing pro-rationing.

Levy Limitations

Regular Levies are taxes that a district may impose each year without voter approval. Regular property tax levies are subject to several statutory and constitutional limits.

  • The "levy limit" restricts the increase of the levy of individual taxing districts to one percent or to the implicit price deflator, whichever is lower. The base to which the increase is applied is the highest allowable levy since 1986. Amounts attributable to new construction and increases in utility values are added to the allowed percentage increase. This law applies to a taxing district budget and not to individual properties. RCW 84.55.010.

Stat Max
Cemetery 0.1125
County Current Expense 1.8
County Road 2.25
County Flood 0.5
Cities 3.375-3.60*
Emergency Medical 0.5
Fire Districts 1.000-1.500
Public Hospital 0.75
State School (State) 3.6
State School (Local) Varies
*Unless annexed to Library and/or Fire.

  • The aggregate regular levy rate of all senior and junior taxing districts (not including the state, port districts and public utility districts, emergency medical levies, and conservation futures) cannot exceed $5.90. RCW 84.52.043
  • The aggregate of all regular levies (not including port and public utility districts) shall not exceed 1% of true and fair value. WASHINGTON 1972 AMENDMENT STATE CONSTITUTION, ARTICLE VII, Sec. 2 and RCW 84.52.050

Voters within a district may approve excess or special levies. These levies may be for maintenance and operation (M&O) or for construction of buildings or other facilities. M&O levies are generally limited to one year except for the School Districts & Fire Districts, which are permitted to vote on two-to-four-year levies. Levies to finance general obligation bonds for capital improvement purposes usually obligate the voters to pay annual principal and interest costs over a period of several years. Voter approved excess or special levies are over and above the statutory and constitutional limitations. Qualified senior/disabled persons are exempt from these levies. RCW 84.52.052

101% Levy Limit

This limit prohibits a taxing district from levying regular property taxes in any year more than 101% of the highest amount of regular property taxes that could have been lawfully levied in that taxing district in any year since 1985, plus an additional amount calculated for new construction, improvements to property and the increase in the value of state assessed property. (RCW 84.55.010)

The limit is based on the population of the district and the district's need to increase revenue. A taxing district with a population below 10,000 would need to adopt a resolution / ordinance by simple majority to increase its levy up to the 1% limit. Taxing districts with a population over 10,000 are limited to the lesser of 1% or inflation as defined by the IPD (implicit price deflator) with the adoption of a resolution / ordinance by simple majority. If the rate of inflation is less than 1%, the taxing district could increase its levy up to 1% with a finding of substantial need and the passage of a second resolution/ordinance by a super majority vote of the governing body.

$5.90 Levy Limit

This is the maximum combined regular tax levies for senior and junior taxing districts, other than the state, in each tax code area. Not all districts are subject to the $5.90 limit. Exceptions include:

  • State school
  • Ports and PUDs
  • Conservation futures
  • EMS
  • Affordable housing
  • Metro parks (if voted)
  • Excess levies

1% Constitutional Limit

Established by Article VII, Section 2 of the State Constitution, the limit prohibits the aggregate of all tax levies on real and personal property from exceeding 1% ($10 per $1,000) of the true and fair value of property. This limit does not apply to excess levies, levies by port districts and levies by public utility districts. (RCW 84.52.050)