Cities and towns

From the 2024 DOR Tax Exemption Study

84.36.010(1) - Cities and towns Description Real and personal property owned by municipalities is exempt from property taxation. Purpose Property of municipal corporations is exempt under the Washington Constitution. This reflects a long-standing legislative policy not to tax publicly owned property. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $173.860 $175.670 $177.504 $179.374 Local Taxes $514.258 $535.764 $558.261 $581.629 Repeal of Repealing a property tax exemption would not increase state revenues. A repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. It may decrease the local rate and possibly result in local taxing districts at their statutory maximum rate experiencing a revenue increase. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $15.604 $30.355 $31.430 Assumptions - The total estimated exempt value is $80.6 billion. - This repeal takes effect beginning with property taxes due for calendar year 2025. - Growth rate mirrors the property tax growth rate reflected