Tri-City Regional Chamber of Commerce
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Legislative Activity

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

4/2/2025

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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
How to Testify Guide
Click to make your opposition known
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House Bill 1722 - Secondary career education

4/1/2025

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I am writing on behalf of the Tri-City Regional Chamber of Commerce to express our strong support for House Bill 1722, which seeks to review and revise state restrictions affecting students participating in secondary career and technical education (CTE) programs and other state-approved career pathways. As an organization committed to fostering a skilled and prepared workforce, we believe that this legislation is a crucial step toward enhancing student learning opportunities and better preparing our youth for successful careers.

​CTE programs provide students with practical skills and real-world experiences that are essential for their future employment. By reevaluating and potentially removing unnecessary state-imposed barriers, HB 1722 will enable more students to fully engage in these valuable programs. This increased participation not only enriches students' educational experiences but also equips them with the competencies required in today's dynamic job market.

Furthermore, aligning state regulations with federal standards, as proposed in HB 1722, ensures that educational policies are consistent and supportive of student advancement. By facilitating smoother transitions from education to employment, this bill will contribute to a more robust and capable workforce, ultimately benefiting the economic growth and competitiveness of Washington State.

This bill also helps Washington businesses by preparing students with the skills they needed to join the workforce. When students can learn job-related skills early, they become stronger candidates for employment after graduation. Local businesses benefit from a larger pool of workers who are ready to contribute on day one. HB 1722 supports both students and employers by ensuring that education matches the needs of current jobs.

We believe that HB 1722 is an important step toward building a stronger future workforce in Washington. It provides students with more opportunities to learn and grow and helps businesses find skilled workers in their own communities. For these reasons, the association encourages lawmakers to support House Bill 1722.
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House Bill 1819- Increasing transmission capacity. Senate Public Hearing

4/1/2025

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​I am writing to express our strong support for House Bill 1819, which aims to increase transmission capacity within our state's electrical grid. By focusing on reconductoring existing power lines with advanced conductors, this bill presents a cost-effective solution to enhance our current infrastructure without the extensive expenses associated with constructing new transmission lines. Studies have shown that reconductoring can significantly boost grid capacity while reducing overall costs.

Reconductoring offers a practical approach to modernizing our electrical grid by utilizing existing rights-of-way, thereby avoiding the complexities and delays often encountered with new land acquisitions and permitting processes. This method not only accelerates the expansion of grid capacity but also minimizes environmental and community impacts. Implementing advanced conductors can effectively double the capacity of existing lines, ensuring that our energy infrastructure keeps pace with growing demand and supports the integration of renewable energy sources.

​Furthermore, by streamlining the grid expansion process, HB 1819 will facilitate a more efficient and reliable energy distribution system. This improvement is crucial for businesses that depend on consistent and affordable electricity to operate effectively. Enhanced transmission capacity will not only meet current energy needs but also position Washington State as a leader in adopting innovative solutions for sustainable energy infrastructure. We urge the Legislature to pass HB 1819 to realize these benefits for our economy and communities.
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CALL TO ACTION-PREVENT EXCESSIVE PROPERTY TAX INCREASES WITHOUT VOTER APPROVAL- Oppose SB 5798

4/1/2025

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A Voter-Driven Limit on Property Taxes

In 2001, Washington voters approved Initiative 747 (I-747), a measure designed to limit how quickly property taxes could grow. I-747 capped the annual increase in regular property tax levies to 1%—unless voters approved a higher increase . Though the Washington State Supreme Court struck down I-747 in 2007, Governor Christine Gregoire called a special session, and the Legislature reinstated the 1% limit to reflect the will of the voters. This cap is now written into law under RCW 84.55.010 and has been a key piece of Washington’s tax policy ever since.

What SB 5798 Proposes in 2025

Fast forward to 2025: Senate Bill 5798 proposes a major shift by removing or significantly changing the 1% cap. If passed, the bill would allow local governments to raise property tax levies beyond the 1% annual limit without a public vote. It could also tie future tax increases to inflation or population growth—metrics that often outpace wage growth and household income.
While this might give local governments more flexibility to fund services, it would also strip away a long-standing taxpayer safeguard and shift decision-making power away from voters.

Why It Matters: Potential Consequences of SB 5798
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​The repeal or loosening of the 1% cap could lead to unpredictable and potentially steep property tax increases year after year. With affordability already a top concern in Washington, SB 5798 threatens to undermine housing stability, slow development, and burden communities with higher costs—without requiring voter approval. The 1% cap has served as a guardrail for over two decades. Removing it may create more problems than it solves.

Negative Impacts of Senate Bill 5798
• Removes the 1% property tax cap, which currently protects homeowners and small businesses from sharp tax increases.
• Leads to financial instability by allowing unpredictable spikes in property tax rates, especially harmful during times of inflation or economic downturn.
• Raises the cost of homeownership, making it more difficult for families to stay in their homes or enter the housing market.
• Discourages housing development by increasing carrying costs for developers, particularly on undeveloped land or during construction phases.
• Could worsen the housing crisis by slowing down new residential construction and limiting supply.
• Hurts small businesses that rent or own property, as higher taxes may be passed through in lease agreements or absorbed as increased overhead.
• Undermines long-term affordability goals by removing a key safeguard that helps keep housing costs stable across communities.
Link to State Bill Site
Bill Overview
How to Testify Guide
Click to make your position known
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Highlighted Bills from the March 27 Session Spotlight

3/27/2025

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​Senate Bill #5408

Allowing for corrections to wage and salary disclosures.
more information
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Senate Bill # 5167

​Making 2025-2027 fiscal biennium operating appropriations.
more information
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Senate Bill #5795

Reducing the state sales and use tax rate.
more information
return to the chamber advocacy page
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Understanding Washington House Bill 1722: What It Means for Students, Businesses, and Communities

3/24/2025

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Understanding Washington House Bill 1722: What It Means for Students, Businesses, and Communities

​Washington State House Bill 1722 (2025) is a proposal designed to strengthen Career and Technical Education (CTE) programs in public schools. These programs provide students with real-world job skills while still in middle or high school. The CTE includes training in areas such as construction, healthcare, information technology, and other high-demand industries. HB 1722 focuses on preparing students not only for college but also for the workforce. It encourages schools to work closely with local businesses, so students can get hands-on experiences that connect directly to their future careers.

If passed, this bill would bring more support and funding to the CTE programs across the state. It would modernize classrooms and equipment, expand career-connected learning opportunities, such as internships and apprenticeships, and make it easier for students to earn credentials and certifications before they graduate. The goal is to help students explore careers early, build practical skills, and become more prepared to enter the workforce.

For businesses, HB 1722 offers a chance to help shape their future workforces. Companies can partner with local schools to provide job shadowing, internships, or even direct training. This means that businesses could find skilled workers more easily, especially in trade and technical jobs that are currently facing shortages. Employers also benefit from having a voice in what students are learning, so graduates come out of school with the exact skills they need.

Communities across Washington would also feel the impact. When students have access to career training in high school, they are more likely to remain motivated, graduate, and contribute to the local economy. Young people are better prepared to enter local industries, which helps towns and cities grow stronger. 

There are many potential benefits to the bill. This would help students obtain real job experiences before they graduate. It would also allow them to earn certifications that would make them more competitive in the job market. Families could save money, since students might not need expensive college degrees to start a good career. In addition, employers would have a reliable pipeline of skilled workers trained in their communities.

In the end, House Bill 1722 is about giving students more choices and better opportunities. This helps connect classroom learning to real careers and supports the idea that success after high school does not always require a four-year college degree. With careful planning and strong community support, this bill could help prepare the next generation of Washington workers for success in the modern economy.
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Highlighted Bills from the March 21 Session Spotlight

3/20/2025

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House Bill # 1747

Expanding protections for applicants and employees under the Washington fair chance act.
More Information

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House Bill #1819

Increasing transmission capacity.
More Information

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Senate Bill #5083

Ensuring access to primary care, behavioral health, and affordable hospital services.
More Information
return to the chamber advocacy page
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House Bill 1210 Target Urban Area, Senate public hearing

3/20/2025

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I am writing to express my strong support for House Bill 1210, which provides tax incentives to businesses that invest in economically struggling urban areas across Washington State. I believe this bill is a critical step toward revitalizing communities that need economic development and job opportunities. Encouraging businesses to expand into these regions will help stimulate local economies and improve the quality of life for many Washingtonians.

HB 1210 is not just about business growth—it is about creating opportunities for people. When companies invest in underdeveloped areas, they bring jobs, infrastructure improvements, and increased economic activity. This means more employment for local residents, stronger small businesses, and a healthier economy overall. As someone who has seen the impact of economic disparity firsthand, I believe this bill offers a practical solution to help struggling communities thrive.

​Additionally, HB 1210 promotes balanced economic development across our state. Instead of allowing prosperity to be concentrated in a few regions, this bill ensures that all communities have the chance to grow and succeed. By supporting this legislation, we are taking a step toward reducing regional disparities and building a more equitable future for Washington State. I urge you to support HB 1210 and help bring meaningful economic change to communities that need it most.
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Senate Bill 5041, Unemployment benefits for striking workers, House public hearing.

3/20/2025

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The Tri-City Regional Chamber of Commerce is deeply concerned about Senate Bill 5041, which proposes extending unemployment insurance (UI) benefits to workers on strike and urge your opposition. This bill could significantly increase the financial burden on small businesses, as they would be required to fund UI benefits for striking workers, even though they are not unemployed due to economic downturns or layoffs.

The additional costs associated with this bill could lead to higher unemployment insurance premiums for all employers, regardless of their involvement in labor disputes. For small businesses operating on tight margins, these increased expenses may force them to make difficult decisions such as reducing the workforce or delaying growth plans. In turn, this could hinder job creation and negatively impact the local economy.

Furthermore, providing unemployment benefits to striking workers may prolong labor disputes as the financial pressure to reach a resolution is lessened. Extended strikes can disrupt local communities and economies, affecting not only businesses directly involved but also other small enterprises that rely on the patronage of these workers. This bill could inadvertently create an uneven playing field, placing small businesses at a disadvantage compared with larger corporations with more resources to absorb these additional costs.

​Please help small businesses in Washington State and oppose Senate Bill 5041
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House Bill 1217- Rent Control, Senate public hearing.

3/20/2025

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The Tri-City Regional Chamber of Commerce is opposed to House Bill 1217, which aims to cap annual rent increases at 7%, could have unintended negative consequences on affordable housing and the rental market in Washington State. By limiting the potential return on investment for property owners, this bill may discourage developers from building new rental units, thereby exacerbating the existing housing shortage.

Additionally, small landlords, who often provide more affordable housing options, might struggle to cover the maintenance and operational costs under these restrictions. This financial strain could force them to sell their properties or convert them to other uses, further reducing the availability of affordable rentals. The rent cap may also result in landlords automatically increasing rent by 7% every year, whether it is needed.

Moreover, capping rent increases could lead to a decrease in the quality of rental housing. With their limited ability to adjust rents in response to rising expenses, landlords may be less inclined to invest in property upkeep and improvements, resulting in deteriorating living conditions for tenants.Please oppose House Bill 1217.
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  • MEMBERSHIP
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