AN ACT Relating to lowering the property tax levy limit from one percent to zero to prohibit certain annual property tax increases; amending RCW 84.55.005 and 84.55.0101; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1.  RCW 84.55.005 and 2014 c 97 s 316 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Inflation" means the percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent twelve-month period by the bureau of economic analysis of the federal department of commerce by September 25th of the year before the taxes are payable;

(2) "Limit factor" means:

(a) For taxing districts with a population of less than ten thousand in the calendar year prior to the assessment year, one hundred ((one)) percent;

(b) For taxing districts for which a limit factor is authorized under RCW 84.55.0101, the lesser of the limit factor authorized under that section or one hundred ((one)) percent;

(c) For all other districts, the ((lesser of one hundred one percent or)) one hundred percent ((plus inflation)); and

(3) "Regular property taxes" has the meaning given it in RCW 84.04.140.

Sec. 2.  RCW 84.55.0101 and 2007 sp.s. c 1 s 2 are each amended to read as follows:

Upon a finding of substantial need, the legislative authority of a taxing district other than the state may provide for the use of a limit factor under this chapter of one hundred ((one)) percent or less. In districts with legislative authorities of four members or less, two-thirds of the members must approve an ordinance or resolution under this section. In districts with more than four members, a majority plus one vote must approve an ordinance or resolution under this section. The new limit factor ((shall be)) is effective for taxes collected in the following year only.

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