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Bill

HB 1397

Imposing local property tax levies wholly credited against the state property tax to provide support and services for veterans' assistance and for persons with developmental disabilities or mental health needs.

2025-2026 Regular Session Introduced by Cyndy Jacobsen and 4 co-sponsors

HB 1397 lets Washington counties impose property tax levies for veteran and disability services, fully credited against state taxes, shifting local funding while maintaining tax neutrality.

By resolution, reintroduced and retained in present status.
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Bill Summary · HB 1397

Legislative bill overview

HB 1397 authorizes local jurisdictions in Washington to impose property tax levies that are fully credited against state property taxes, with revenue dedicated to veterans' assistance and mental health/developmental disability services. The bill creates a mechanism where local taxes offset state tax obligations rather than adding to taxpayers' overall burden. This allows communities to locally fund these services while maintaining revenue neutrality at the state level.

Why is this important

This addresses funding gaps for vulnerable populations—veterans, people with developmental disabilities, and those with mental health needs—by enabling local control over service provision. It attempts to solve a fiscal problem: allowing needed services to be funded locally without increasing total property tax burden, which could make these services more politically feasible. The approach reflects how different regions may prioritize these services differently based on local needs.

Potential points of contention

  • State revenue impact: While framed as "revenue neutral," this shifts funding responsibility from state to local budgets, potentially creating unequal service levels across wealthy versus less-affluent communities
  • Tax complexity: The credit mechanism adds administrative complexity; taxpayers may find it confusing that local levies are credited against state taxes
  • Adequacy concerns: Local-only funding may prove insufficient for these services, especially in rural or economically disadvantaged areas without broad tax bases
  • Precedent questions: This could encourage similar local-state tax swap proposals that fragment funding responsibility

Compiled from official sources — confirm details with the bill’s official record.

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