Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-19 - Property tax levies, rates, and limits › Section 458-19-045 - Levy limit-Removal of limit (lid lift)

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule
			 explains the procedures for implementing a lid lift ballot measure when a
			 taxing district wants to ask its voters for the authority to exceed the levy
			 limit.
(2)
Definitions.
The definitions in WAC
			 458-19-005 apply to
			 this rule.
(3)
Lid lift -
			 Purpose.
The purpose of a lid lift is to allow additional property taxes
			 to be collected at a time when the levy limit in chapter 84.55 RCW is the
			 effective legal constraint to increasing property taxes. A levy limit may be
			 exceeded when authorized by a majority of the voters voting on a proposition to
			 "lift the lid" of the levy limit as described in
			 RCW
			 84.55.050. This "lid lift" is intended to
			 allow the levy limit to be exceeded for the levy made immediately following the
			 vote on the proposition. Lid lifts may result in increasing the limit factor,
			 as defined in WAC
			 458-19-005, for one
			 year or up to six consecutive years. The result of the limit factor increase
			 can temporarily or permanently impact subsequent levy limit
			 calculations.
(4)
Election
			 for approval of lid lift proposition -When held.
The election to approve
			 a lid lift proposition must be held within the taxing district and may be held
			 at the time of a general election, or at a special election called by the
			 governing body of the taxing district for that purpose. The election must not
			 be held more than twelve months prior to the date the proposed levy is to be
			 made. For purposes of this rule, a levy is "made" when the taxing district's
			 budget is certified. The ballot title and measure proposing the lid lift are
			 prepared by the county prosecutor or city attorney, as applicable, in
			 accordance with
			 RCW
			 29A.36.071.
			 RCW
			 29A.36.071 requires a ballot title to include
			 a concise description of the measure, not to exceed 75 words. The requirements
			 for the text of a ballot title and measure differ depending on whether the levy
			 limit will be exceeded for a single year or multiple years, up to six
			 consecutive years. A simple majority vote is required for approval of a lid
			 lift.
(5)
Single year lid
			 lift.
A single year lid lift allows a taxing district to increase its
			 levy by more than one percent over its highest lawful levy since 1985 for 1986
			 collection, for one year.
(6)
Ballot title and measure - Single year lid lift.
The text of a
			 ballot title and measure for a single year lid lift must contain the following:
(a) The dollar rate of the proposed levy so
			 that it reflects the total dollar rate for the taxing district, which may be
			 less than the maximum statutory dollar rate allowed for the particular class of
			 taxing district; and
(b) Any of the
			 following conditions that are applicable:
(i)
			 The number of years the increased levy is to be made by the taxing district;
			 however, if one of the purposes of the increased levy is to make redemption
			 payments on bonds of the taxing district, the duration of the increased levy
			 cannot exceed nine years, except for taxes levied for collection in 2018 and
			 thereafter in Thurston County, the period for which the increased levies are
			 made may not exceed 25 years;
(ii)
			 The purpose or purposes of the increased levy;
(iii) Whether the dollar amount of the
			 increased levy will be used for the purpose of computing the limitations for
			 subsequent levies and thereby permanently increase the taxing district's levy
			 base; and
(iv) Whether the increase
			 in regular property taxes by a county or city resulting from the approval of
			 the lid lift will not apply to property exempt under the senior citizens and
			 disabled persons property tax exemption in
			 RCW
			 84.36.381.