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Legislative updates to Property Tax Levies

Issue Date

Intended audience: County assessors, county treasurers, county legislative authorities, taxing districts, and Department of Veterans Affairs. 

Legislation 

The 2026 Legislature passed Engrossed Substitute House Bill 2442, (PDF) which takes effect July 1, 2026. This Special Notice only references changes made to property tax topics within the bill. 

Summary of property tax changes

  • Authorizes county legislative authorities to continue funding veterans’ assistance and developmental disabilities or mental health services either as part of the county general levy or as separate independent levies. 
  • Creates a new county public health clinic levy that may be included in the county general levy or as a separate levy. 
  • Changes how cities and towns are affected when a fire district is created within the same boundaries as the city or town, depending on whether the district is created before and after July 1, 2026. 
  • Changes the number of years voters can approve a rate-based levy lid lift and increases the number of years a multi-year lid lift may occur. 

Veterans’ assistance levy, developmental disabilities or mental health levy, and county public health clinic levy 

County legislative authorities may continue to impose the veterans’ assistance levy and the developmental disabilities or mental health levy as dedicated funds within the county general levy. The bill also allows the new county public health clinic levy to be imposed in the same way. The maximum county general levy rate does not change and remains $1.80 per $1,000 of assessed value, or up to $2.475 per $1,000 of assessed value under certain conditions. 

County legislative authorities may also choose to impose the veterans’ assistance levy, the developmental disabilities or mental health levy, and the new county public health clinic levy as separate levies instead of funding them within the county general levy. The maximum county general levy rate does not change and remains $1.80 per $1,000 of assessed value, or up to $2.475 per $1,000 of assessed value under certain conditions. If a county chooses to impose any of these levies separately, the county general levy’s highest lawful levy is not affected. 

Actions required if a county legislative authority chooses to impose these levies separately 

If a county legislative authority chooses to impose the veterans’ assistance levy, developmental disabilities or mental health levy, or county public health clinic levy as separate levies, it must certify the levy amounts separately to the county assessor. This process is similar to how counties certify the county general levy and county road levy under RCW 84.52.070.  

The first year a levy is imposed separately, the levy amount is not limited to the amount previously included within the county general levy. 

If the county legislative authority wishes to increase the levy amount for the second year or any later year, they must adopt a resolution or ordinance authorizing the increase just like they do for the county general levy or county road levy (RCW 84.55.120). 

Specific changes to the individual levies 

Veterans’ assistance levy (RCW 73.08.080) 

  • This levy may be part of the county general levy or a separate levy. 
  • The maximum levy rate remains $0.27 per $1,000 of assessed value. 
  • The minimum levy rate remains $0.01125 per $1,000 assessed value. However, the county may levy a lower amount if the fund balance, less outstanding warrants, on the first Tuesday in September is greater than the amount the minimum levy would generate. 
  • Removes the authorization to reduce this earmarked fund at the same proportion as the county general levy. 
  • If levied separately, the limit factor is: 
  • 101% for counties with a population less than 10,000. 
  • The lesser of 101% or 100% plus the implicit price deflator (IPD) for counties with a population of 10,000 or more. 
  • If this levy is made as a separate levy, the levy is not subject to the $5.90 aggregate limit, but it is subject to the constitutional 1% aggregate limit. 
  • If this levy is made as a separate levy, the first levy is not subject to the 1% growth limit and other limitations in RCW 84.55.010. 

Developmental disabilities or mental health levy (RCW 71.20.110) 

  • This levy may be part of the county general levy or a separate levy. 
  • The county legislative authority must levy a $0.025 per $1,000 assessed value property tax levy for this fund. 
  • Removed the authorization to reduce this earmarked fund at the same proportion as the county general levy. 
  • If levied separately, the limit factor is: 
  • 101% for counties with a population less than 10,000. 
  • Lesser of 101% or 100% plus the IPD for counties with a population of 10,000 or more. 
  • If this levy is made as a separate levy, the levy is not subject to the $5.90 aggregate limitation, but it is subject to the Constitutional 1% aggregate limitation. 
  • If this levy is made as a separate levy, the first levy is not subject to the 1% growth limit and other limitations in RCW 84.55.010. 

County public health clinic levy (Chapter 84.52 RCW) 

  • County legislative authorities can start collecting this new levy with the 2027 tax year. 
  • The maximum rate limit is $0.05 per $1,000 of assessed value. 
  • This new levy may be part of the county general levy or imposed as a separate levy. 
  • If imposed as a separate levy: 
  • It is not subject to the $5.90 aggregate levy limit. 
  • It is subject to the constitutional 1% aggregate levy limit. 
  • The levy limit factor is: 
  • 101% for counties with a population less than 10,000. 
  • Lesser of 101% or 100% plus the IPD for counties with a population of 10,000 or more.  
  • The first levy is not subject to the 1% growth limit and other limitations in RCW 84.55.010. 
  • Revenue from the levy may only be used for public health clinic operations, maintenance, and capital expenses. 
  • A public health clinic means a publicly operated fixed or mobile site that provides low-barrier public health and other related services. 

Fire districts with the same boundaries as a city or town property tax levy impacts 

Activity 

Fire district was created before July 1, 2026 

Fire district created on or after July 1, 2026 

City must adopt a resolution before the fire district is created. 

Yes 

Yes 

The finance plan in the resolution may include a regular levy and or benefit assessment for the fire district. 

Yes 

Yes 

The finance plan must state the dollar amount the fire district will levy in the district’s first year. 

Yes 

Yes 

The city or town’s highest lawful levy is reduced based on the finance plan. 

Yes 

No 

The finance plan must include a statement of impact on the taxpayers with the district. 

Yes 

No 

Simple majority voter approval or supermajority voter approval is required to create the fire district if the fire district will levy a benefit assessment. 

Yes 

Yes 

The city or town must reduce their general levy by the amount of the levy as stated in the financial plan. 

Yes 

No 

The city or town’s statutory maximum must be adjusted. If they are annexed to a library district, the city or town’s rate is $3.60 less the library district’s actual levy rate and fire district’s actual levy rate. If the city or town is not annexed to a library district, their statutory maximum rate limit is $3.375 less the fire district’s actual levy rate. 

No 

Yes 

Levy lid lifts (RCW 84.55.050) 

  • Increases the number of years in which the voters can set a maximum levy rate from one to two consecutive years. 
  • The levy rates are not required to be the same, but they must be included in the ballot proposition. 
  • Increases the number of years in which the voters can lift the appropriate growth limit factor from 6 years to 10 years.