What is the property tax cap?

The state of Washington has a property tax cap, or "levy lid," which is designed to limit how much money a local government can raise from property taxes. The levy lid is set at 1% of the taxable value of all property in a jurisdiction. This means that local governments cannot set a higher property tax rate than 1% of the total taxable value of all property in their jurisdiction. If local governments try to raise taxes beyond the levy lid, then taxpayers may challenge the higher rate in court. In addition, state lawmakers may also pass a law limiting property taxes to the cap. The property tax cap is designed to ensure equity in the tax system by preventing local governments from taxing some property owners at higher rates than others. It also encourages local governments to use other sources of revenue, such as fees and fines, to pay for services, instead of relying solely on property taxes. Overall, the property tax cap in Washington is intended to provide a fairer, more affordable tax system to property owners in the state. It ensures that local governments do not raise property taxes too high, and it encourages them to look for other sources of revenue to pay for services.

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What is the property tax cap?

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