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History of Property Tax

Washington's property tax system has been shaped by more than 170 years of constitutional amendments, laws, court decisions, and voter initiatives. Open a subject below to see the key changes, oldest first.

Year Change
1853 The Organic Act creating Washington Territory requires all taxes to be assessed uniformly and exempts property of the United States, churches, and benevolent institutions.
1889 The State Constitution is adopted, requiring property to be assessed uniformly.
1929 14th Amendment: property may be classified, with all real estate as one class, and taxes must be uniform within a class across each taxing district.
1968 53rd Amendment: allows farm, timber, and open space land to be assessed on current use instead of market value.
1972 Voters approve SJR 1, adding the 1 percent limit on regular levies ($10 per $1,000 of value) to the Constitution.

Year Change
1932 An initiative limits combined regular levies to 40 mills, with property assessed at 50 percent of value.
1944 17th Amendment writes the 40 mill limit into the Constitution.
1971 Annual growth in each local district's regular levy is limited to 106 percent of its highest levy in the prior three years.
1973 55th Amendment sets a 20 mill limit on regular levies (upheld in Hoppe v. Kinnear).
1975 With assessment at 100 percent of value, the statutory rate limit is set at $9.15 per $1,000.
1979 The state school levy becomes subject to the 106 percent limit.
1986 Voters may approve a limited waiver of the 106 percent limit.
1988 Local districts are divided into senior and junior districts with a combined limit of $5.55 per $1,000; the state levy is excluded from the limit.
1990 The combined local limit is raised to $5.90 per $1,000.
1997 Referendum 47 reduces the 106 percent limit on annual levy growth to the rate of inflation.
2000 Initiative 722 would have capped levy and value growth at 2 percent; the courts struck it down.
2001 Initiative 747 limits annual levy growth to 1 percent, or inflation if lower.
2007 The Supreme Court strikes down Initiative 747, and the Legislature reinstates the 1 percent limit in a special session that same month.
2026 ESHB 2442 lets counties levy for veterans' assistance, developmental disabilities or mental health, and a new public health clinic purpose separately from the county general levy, and extends how long a levy lid lift may run.

Year Change
1955 A statewide revaluation cycle is set at four years.
1967 Barlow v. Kinnear gives the state authority to equalize assessments between counties.
1969 Carkonen v. Williams requires assessments at a uniform 50 percent of market value.
1971 Assessors are allowed to update values annually.
1973 The assessment level is raised from 50 percent to 100 percent of true and fair value, effective for 1975 taxes.
1982 The physical inspection cycle is extended to six years for assessors who update values annually.

Year Change
1965 47th Amendment allows a property tax exemption for retired persons.
1967 Senior citizens are exempted from the first $50 of real property tax.
1971 The $50 exemption is replaced by an income based exemption from special (voter approved) levies.
1974 to 1991 Income limits and exemption amounts are revised repeatedly, adding value based exemptions from regular levies for the lowest income tiers.
1975 Seniors with limited incomes may defer property taxes and special assessments.
1995 Values of homes in the exemption program are frozen as of January 1, 1995, and the deferral program is expanded.
2019 ESSB 5160 ties income limits to each county's median household income, updated every five years.
2023 SHB 1355 raises the income limits for the exemption, effective for 2024 taxes.
2024 HB 2375 allows an accessory dwelling unit on the same parcel to be included in the exemption.
2026 ESSB 6162 fully exempts program participants from the state school levy and adds a standard deduction when calculating income, beginning with 2027 taxes.

Year Change
2005 Veterans with a 100 percent service-connected disability become eligible for the senior and disability exemption, regardless of age.
2024 Eligibility now covers veterans with a combined 80 percent service-connected rating or a total disability rating.
2025 EHB 1106 lowers the threshold again: 60 percent for 2026 taxes and 40 percent for 2027 taxes and after.
2026 ESHB 2442 lets counties fund veterans' assistance through a separate levy outside the county general levy.

Year Change
1976 64th Amendment lets school districts seek voter approval of two-year special levies.
1977 School maintenance and operation levies are limited to 10 percent of the prior year's basic education spending.
1978 Seattle School District v. State requires the state to fully fund basic education.
1987 The school levy limit is raised to 20 percent of budget and levy equalization is created.
1997 Voters allow school maintenance and operation levies for up to four years.
2017 In response to the McCleary decision, EHB 2242 raises the state school levy and limits local school levies beginning in 2019.
2019 SB 5313 sets local enrichment levies at the lesser of $2.50 per $1,000 or a per pupil amount adjusted for inflation.
2025 ESHB 2049 raises the per pupil limit on enrichment levies over several years.
2026 ESSB 6162 changes the state school levy, including full exemption for senior and disability exemption participants, beginning with 2027 taxes.

Year Change
1886 Revenue producing property of churches becomes taxable.
1900 The first $300 of household personal property is exempt.
1935 All household goods and personal effects are exempted.
1937 Motor vehicles are exempted from property tax and taxed through an excise tax instead.
1961 Goods in transit (freeport) are exempted.
1974 to 1983 Business inventories are phased out of the property tax, fully exempt for 1984 collections.
1988 Voters raise the head of family personal property exemption from $300 to $3,000.
2020 SSB 5628 exempts heavy equipment rental property, replacing it with a rental tax beginning in 2021.

Year Change
1925 Private schools and colleges are exempted.
1981 Nonprofit musical and artistic organizations and public assembly halls are exempted.
1989 Nonprofit and federally subsidized homes for the aging are exempted.
1993 Nonprofits that distribute grants to other nonprofits, such as United Way, are exempted.
1995 A multi-unit housing exemption is created for new construction and rehabilitation in urban centers.
2023 Nonprofit recovery residences are exempted for taxes collected 2024 through 2033.
2025 HB 1094 exempts nonprofit property loaned or rented to government or other nonprofits for social services.

Year Change
1970 The Open Space Taxation Act implements the 53rd Amendment.
1971 Standing timber is exempted and taxed through a timber excise tax at harvest.
1984 Conservation easements become eligible for current use assessment.
2024 SHB 1818 waives compensating tax when designated forest land is sold to a government that keeps managing it as forest.
2025 SHB 1261 reduces back taxes on removal of farm and agricultural land from seven years to four.

Year Change
1974 Fire districts may impose voter approved benefit charges.
1992 Conservation districts may impose special assessments for up to 10 years.
2025 SHB 1488 raises the conservation district per parcel limit to $25.

Year Change
2014 Following a 2013 federal appeals court decision on leasehold improvements on tribal trust land, about 942 building only parcels at Shelter Bay and Pull and Be Damned on the Swinomish Reservation are removed from the tax rolls. See the Department of Revenue Property Tax Advisory.

Contact Us

Assessor: Danny Hagen

Office Hours:
8:30 to 4:30 Mon - Fri

700 South 2nd Street
Room 204
Mount Vernon, WA 98273

Contact:
Phone: (360) 416-1780
assessor@
skagitcountywa.gov