1. There is something called a levy lid that creates a limitation on the annual regular levy amount of a PHD. A PHD may want to raise that lid and to do so will need to hold a public vote.

2. Here is how the levy lid works: each year the levy of a PHD can be no greater than the “limit factor”multiplied by the regular property taxes levied in the highest of the three most recent years (excluding the levy rate applied to new construction and state assessed property). RCW 84.55.050.

3. “Limit factor” means: (a) for taxing districts with a population less than ten thousand, 106%; (b) for taxing districts whose legislative authorities approve a higher amount by a vote of substantial need, the lesser of the higher amount approved or 106%; (c) for all other districts, the lesser of 106% or inflation. RCW 84.55.005. (If initiative 747 passes, the limit factor will be reducted to 101%.)

4. The levy lid may be raised if a simple majority of voters approve an increase. The vote does not need to be validated by a specific voter turn out as required by the constitution for special levies. Note that districts which have not levied any tax in the three most recent years and want to start levying taxes must have a public vote of this type. That is because the lid is calculated by multiplying the limit factor by the highest amount of tax levied in the three most recent years. If that amount is zero then the lid is zero and the public needs to vote to raise the lid.