Taxing districts are able to increase their highest lawful levy by up to one percent (the “limit factor”), depending on the population of the taxing district and the resolutions/ordinances they adopt.

Taxing districts with a population less than 10,000

Taxing districts with a population less than 10,000 must adopt a resolution/ordinance to increase their highest lawful levy since 1985 by one percent, for a limit factor of 101 percent. Each year a majority of the governing board of the district must approve a resolution/ordinance to increase their highest lawful levy.

Taxing districts with a population of 10,000 or more

Taxing districts with a population of 10,000 or more must adopt a resolution/ordinance to increase their highest lawful levy since 1985 by 100 percent plus the Implicit Price Deflator (IPD) or 101 percent, whichever is less. Each year a majority of the governing board of the district must approve a resolution/ordinance to increase their highest lawful levy.

If a taxing district with a population of 10,000 or more adopts a second resolution stating a substantial need for additional funds, the district’s limit factor can be a maximum of 101 percent. The substantial need resolution/ordinance requires approval by a supermajority of the governing board of the district.

As the levy limitation is applied to a district's levy over the years, and the district’s taxable base grows, the rate a district is allowed to levy tends to drift downward from the maximum statutory levy rate. A district may need to raise the levy limit in order to increase revenue.

A levy lid lift is the means to exceed the 101% levy limit. A district may ask its voters to authorize an amount that exceeds the levy limit or "lift the levy lid."

The taxing district can request a single year lid lift (1 year) or a multiple year lid lift (up to 6 years). In either case, approval of the lid lift must occur within 12 months of when it will be imposed. The lift is temporary unless the ballot specifically states the resulting levy will be used for future levy limit calculations. RCW 84.55.050

Single year levy lid lifts:

• May be voted at a General Election or a Special Election.
• Require voter approval of a simple majority.
• Must be levied within 12 months of voter approval.
• Increase the district's highest lawful levy above statutory levy limitation for the first year of the lid lift.
• Levy capacity increase is temporary unless the ballot specifically states the resulting levy will be used in the following years levy limit calculations.
• May limit the levy increase for a specific period of time or purpose.
• May provide that the exemption authorized by RCW 84.36.381 will apply to the lid lift increased levy capacity.

Single year levy lid lift ballot titles must contain:

• Identification of the enacting legislative body.
• Statement of the subject matter, not to exceed 10 words.
• A concise description of the measure, not to exceed 75 words.
• The dollar rate (levy rate) proposed.
• A clear statement of the conditions, if any, which are applicable under RCW 84.55.050(4).
• A question asking if the ballot measure should be approved.

RCW 29A.36.071, 29A.72.050, 84.55.050(1)

Multiple year levy lid lifts:

• May only be voted at a Primary Election or General Election.
• Require voter approval of a simple majority.
• Must be levied within 12 months of voter approval.
• Increase the district's highest lawful levy above statutory levy limitation and establish a limit factor in each of a maximum of 6 subsequent years.
• Levy capacity increase is temporary unless the ballot specifically states the resulting levy will be used for future levy limit calculations.
• Funds raised through a lid lift can be supplanted in counties with a population of 1.5 million or more, when approved by the voters between July 26, 2009 and December 31, 2011.
• Funds raised through a lid lift can be supplanted in counties with a population less than 1.5 million, when approved by voters after July 26, 2009.
• May provide that the exemption authorized by RCW 84.36.381 will apply to the lid lift increased levy capacity.

Multiple year levy lid lift ballot titles must contain:

• Identification of the enacting legislative body.
• Statement of the subject matter, not to exceed 10 words.
• A concise description of the measure, not to exceed 75 words.
• The dollar rate (levy rate) proposed only for the first year of the consecutive years.
• The limit factor, or a specific index to be used for determining a limit factor (for example, Consumer Price Index) by which the regular tax levy will be increased in each of the subsequent consecutive years.
• The limited purpose for the increase.
• A question asking if the ballot measure should be approved.

RCW 29A.36.071, 29A.72.050, 84.55.050(2)

General obligation bonds issued by port districts have significant differences from the general obligation bonds discussed in Part 3 of this guide. General obligation bonds issued by port districts are not excess levies (though the tax base includes timber assessed value).

Port districts must receive voter approval for most general obligation bond levies. A port district general obligation bond levy is a regular levy subject to some statutory limitations.

Port district general obligation bond ballot titles must contain:

• Identification of the enacting legislative body.
• Statement of the subject matter, not to exceed 10 words.
• A concise description of the measure, not to exceed 75 words.
• The maximum amount of the indebtedness to be authorized.
• The maximum term any bonds may have.
• A description of the purpose or purposes of the bond issue.
• Whether excess property taxes will be levied to pay and retire such bonds.
• A question asking if the ballot measure should be approved.

RCW 53.36.030, 39.36.050, 39.40.010, 84.52.056, 29A.36.071

As a subcategory of the excess levy, a general obligation bond is backed by the taxing district's ability to levy tax.

The taxing district must receive voter approval to issue a general obligation bond. The district can levy an amount sufficient to pay principal and interest for the bonded debt.

The major difference between an excess levy and a bond is time. A bond has a longer duration than an excess levy. Taxing districts issue bonds to pay for long-term projects such as buildings, infrastructure, schools and sewer systems. Typical bond levies include:

• Construction bonds.
• Transportation vehicle fund bonds.
• Technology bonds.

While several taxing districts have specific statutes authorizing issuance of bonds, many taxing districts fall under the general bond statute, RCW 84.52.056.

Voter-approved bond levies are not subject to the statutory limitations.

General obligation bond ballot titles must contain:

• Identification of the enacting legislative body.
• Statement of the subject matter, not to exceed 10 words.
• A concise description of the measure, not to exceed 75 words.
• The maximum amount of the indebtedness to be authorized.
• The maximum term any bonds may have.
• A description of the purpose or purposes of the bond issue.
• Whether excess property taxes will be levied to pay and retire such bonds.
• A question asking if the ballot measure should be approved.

RCW 29A.36.071, 29A.72.050, 39.36.050