On April 18, 2025, the Washington Senate introduced Senate Bill 5798, a legislative proposal aimed at revising the state property tax levy rates. The bill seeks to address the complexities surrounding property tax assessments and their implications for state funding, particularly in education.

The primary purpose of Senate Bill 5798 is to establish a clear framework for property tax levies, specifically setting the state property tax levy rate at $2.095 per $1,000 of assessed value for the calendar year 2026. This rate is based on the assessed valuation of all taxable property within the state, adjusted to the state equalized value as determined by the state department of revenue. The bill also stipulates that for taxes collected in 2022 and beyond, the levy is subject to the limitations outlined in chapter 84.55 of the Revised Code of Washington (RCW), which governs property tax increases.

Key provisions of the bill include the requirement that all taxes collected under this section be deposited into the state general fund, with a specific allocation to the education legacy trust account for the support of common schools for fiscal year 2019. Additionally, the bill establishes an aggregate rate limit for state property taxes, capping it at $3.60 per $1,000 of assessed value. Should the aggregate rate exceed this limit in any future calendar year, the rates must be reduced proportionally.

The introduction of Senate Bill 5798 has sparked notable debates among lawmakers, particularly regarding its potential impact on funding for public education and local governments. Proponents argue that the bill provides necessary clarity and stability in property tax assessments, which can help ensure consistent funding for essential services. Conversely, opponents express concerns that the cap on property tax rates may limit the ability of local jurisdictions to respond to rising costs and funding needs.

The economic implications of this bill are significant, as property taxes are a primary source of revenue for state and local governments. By establishing a clear levy rate and limitations, the bill aims to balance the need for adequate funding with the financial burden on property owners. Experts suggest that if passed, Senate Bill 5798 could lead to more predictable funding streams for education and other public services, while also addressing concerns about affordability for taxpayers.

As the legislative process unfolds, stakeholders will closely monitor the discussions surrounding Senate Bill 5798, particularly as it relates to potential amendments and the broader implications for Washington's fiscal landscape. The bill's progression will be pivotal in shaping the future of property tax policy in the state.