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Washington Democrats may be shifting their strategy on property taxes, with Senate Majority Leader Jamie Pedersen (D-Seattle) hinting at a new approach that could change how homeowners are taxed across the state.

Instead of simply raising the annual cap on property tax increases, Pedersen said lawmakers are exploring a plan to create a tax exemption for primary homes while placing a heavier burden on luxury properties and wealthy investors.

“We are actively exploring the possibility of creating a primary residence property tax exemption that would help out real human beings who own their houses and shift more of the burden onto people who own mansions, people who own second homes and large commercial enterprises,” Pedersen said during a press conference on Tuesday.

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“Right now, they are not paying their fair share,” he added.

This idea falls in line with the broader philosophy state Democrats have been pushing in recent years — taxing the wealthy to fund public services while easing the burden on middle-class and lower-income residents. A perfect example of that is the capital gains tax on large stock transactions that voters approved of in November.

HB 1334 still in play, but facing pushback

While Pedersen’s comments suggest a possible shift, the debate over (HB 1334) is still raging. The bill is about giving local governments the ability to raise their portion of a homeowner’s property tax.

The bill seeks to replace the current 1% revenue growth cap for local government spending with a formula that accounts for population change and inflation, capping the increase at 3%.

Under existing law, the annual growth of regular property tax levy revenue is limited to 1% for jurisdictions with populations under 10,000. For larger jurisdictions, the limit is the lesser of inflation or 1%.

Democrats argued that local governments need more flexibility to fund schools, public safety and infrastructure.

House Majority Leader Joe Fitzgibbon acknowledged that property taxes feel expensive because they come in large lump sums, but he pointed out that Washingtonians actually pay much more in sales tax — just spread out over time.

“Most Washingtonians pay much more in sales tax than they pay in property taxes, but they pay sales tax in many small increments,” Fitzgibbon said. “Whereas you pay your property taxes, you know, typically twice a year … so it feels like a lot, it is a lot.”

Republicans: ‘People are not in the mood for more taxes’

Republicans strongly oppose HB 1334 and any effort to raise property taxes, warning that homeowners and renters are already struggling with affordability. Senate Republican Leader John Braun predicted a fierce public backlash if Democrats move forward with the plan.

“I expect there to be significant pushback from the public around the state because this is just one more cost in a state where it’s been increasingly unaffordable for working Washingtonians to live,” Braun said.

He also called the tax increase “an enormous tax,” estimating it would generate more than $10 billion in revenue over the next 10 years for local governments.

Representative Peter Abbarno (R-Centralia) added that many Washingtonians already feel like they are being taxed to death.

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“This is just one more example of death by 1,000 cuts,” Abbarno said. “The number one message I get from my community is that taxes are too high, and the number one tax they want reduced is property taxes.”

Previous attempts to change the law

The 1% property tax levy limit has been a subject of debate in Washington for decades.

In 2001, Initiative 747, spearheaded by anti-tax activist Tim Eyman, imposed a 1% cap on annual property tax increases. This initiative was approved by voters but later declared unconstitutional by the Washington State Supreme Court in 2007.

In response, the Legislature reinstated the 1% cap during a special session called by then-Governor Christine Gregoire.

In recent years, lawmakers have revisited the discussion on property tax limits. In 2024, (SB 5770) was introduced to address the constraints of the existing 1% cap. The bill proposed tying the property tax cap to inflation, allowing for increases up to a maximum of 3%.

Proponents argued that the 1% limit was outdated and did not account for rising costs faced by local governments, the same arguments being used today. Despite these arguments, SB 5770 faced significant opposition and ultimately did not pass.

Will Democrats change course?

Pedersen’s comments about shifting the tax burden to the wealthy signal that Democrats may be reconsidering their approach.

A “primary residence exemption” could provide direct relief to middle-class homeowners while ensuring that the state still brings in additional revenue from those with high-value properties and investment real estate.

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This strategy would likely appeal more to voters than a broad property tax increase.

However, it could face legal and logistical hurdles, as Washington’s constitution requires uniform taxation. It’s unclear if Democrats would attempt to pass both HB 1334 and a wealth-based property tax plan or if they are setting the stage to pivot away from the current bill.

The House Finance Committee took public testimony Tuesday on HB 1334 during a hearing set for Feb. 11. Washington homeowners and renters will be watching closely to see whether lawmakers double down on HB 1334 — or take a different path forward.

Matt Markovich often covers the state legislature and public policy for ³ÉÈËXÕ¾ Newsradio. You can read more of Matt’s stories here. Follow him on , or email him here.