Federal government

From the 2024 DOR Tax Exemption Study

84.36.010(1) - Federal government Description Real and personal property owned by the federal government is exempt from property taxation. Purpose Property of the federal government is exempt under the Washington Constitution, except to the extent that Congress specifically allows such taxation, which it has rarely done. The federal government does make certain payments in lieu of property taxes, e.g., for federal forest lands. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $138.444 $139.885 $141.345 $142.834 Local Taxes $409.501 $426.625 $444.539 $463.147 Repeal of Repealing this exemption would not increase revenues. Constitutional case law exemption makes federal instrumentalities immune from state and local taxes. Potential ($ 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 $0.000 $0.000 $0.000 Assumptions - Total estimated exempt value is $63.3 billion. - Growth rate mirrors the property tax growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Repealing this exemption would not increase revenues. Constitutional case law m