A Cap Worth Keeping: How HB 2049 Threatens Property Tax Stability and Housing Affordability in Washington

Washington's Property Tax Cap: A Proven Safeguard at Risk Under HB 2049

The Origin of the 1% Property Tax Cap
In 2001, Washington voters overwhelmingly approved Initiative 747 (I-747), a measure aimed at limiting the growth of property taxes. Led by tax reform advocate Tim Eyman, the initiative restricted local governments from increasing their regular property tax levies by more than 1% per year, unless a higher rate was approved directly by voters. The intent was to protect homeowners, seniors, and small businesses from unpredictable tax hikes that could threaten housing stability and economic security.

For over two decades, this law has provided predictability and accountability in property tax policy, balancing the funding needs of local governments with the financial realities of Washington residents.

What HB 2049 Proposes — And Why It Matters

In 2025, House Bill 2049 seeks to undo this balance by removing the 1% cap on property tax increases. If passed, HB 2049 would allow local governments to raise property tax levies beyond the 1% limit without voter approval, giving taxing authorities far more leeway without public input or oversight. While the bill is intended to increase funding for K-12 education and public safety, it eliminates a key taxpayer protection that has shielded residents from volatile and unaffordable tax increases.

​Negative Impacts of House Bill 2049
• Removes voter oversight, allowing tax increases without public approval.
• Enables sharp, unpredictable property tax hikes, creating financial instability.
• Raises the cost of homeownership, making it harder for families to stay in their homes.
• Increases rental housing costs, as property taxes are passed through to tenants.
• Discourages housing development, particularly for affordable and entry-level homes.
• Raises pre-construction costs, making land banking and project financing more difficult.
• Worsens Washington’s housing shortage, especially for low- and moderate-income households.
• Undermines 20+ years of tax stability, eroding a proven safeguard against housing insecurity.

Link to State Bill Site

Bill Overview

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