WA HB1729

Reduces state property tax levies for school funding beginning in tax year 2026 to address an estimated $4 billion in excess collections from 2018-2025 due to property values rising faster than budget writers anticipated when implementing the McCleary school funding fix

Establishes new base levy amounts for calendar year 2026: $2,789,400,000 for Part I of the state school levy and $1,315,500,000 for Part II, with subsequent years calculated from these new baselines plus allowable increases

Applies the new levy limits for collection in calendar years 2026, 2027, and 2028, with 2029 and thereafter governed by existing levy limit laws in chapter 84.55 RCW and the $3.60 per $1,000 aggregate rate cap

Amends RCW 84.52.065 and RCW 84.55.010 to restructure how state property tax levy calculations are made, preventing excess revenue from prior years from being carried forward into future levy calculations