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House Bill 1334 (HB 1334), introduced by Representative Pollet (D), would increase the amount a municipality could raise property taxes by changing the way inflation is calculated and adding up to an additional 3% based on population.
Under HB 1334, The inflation calculation would change from the implicit price deflator to the Consumer Price Index (CPI). The implicit price deflator, is calculated on the goods and services the US produces, CPI is calculated using a selection of commonly purchased products by consumers over time and is the most widely used number for calculating inflation in the US. The CPI calculation typically results in a higher percentage, 2-2.4% per year which would increase the maximum ceiling to which a municipality could increase taxes.
The result would allow property taxes to be increased by a potential 5% to 6% depending on the CPI increase and population growth.
Last year Senate Bill 5570 (SB 5570), sponsored by Senator Pederson (D), failed to pass the Senate. SB 5770 would have removed the 1% cap on property tax increases, overturning voter approved initiative 747 that passed in 2001.
HB 1334 will increase property taxes on Washington residents, both homeowners and renters, who are already struggling with high inflation, high food, gas and utility costs and should not be passed.
The state has increased spending significantly over the last 12 years and needs to control costs, reduce government waste and not increase taxes to fund lawmakers’ non-essential projects.
