The 1% limit is a limit on the level of the property tax. If property tax values somehow fell by 50%, in theory, the property tax rate would double to ensure city operations remain funded. However, Seattle is almost at the statutory limit right now so there isn't much room to increase the rate - I this scenario the city would hit the 1% limit and be forced to get the money somewhere else or cut its budget instead. As I initially wrote:

>...If total citywide property value drops by 50%, the tax rate would hit its legal maximum ceiling, and the city would have to make up the money somewhere else or cut spending.

And the city wouldn't even get all of the increase it is allowed as there are other tax districts who would also want a higher rate. The tax increase that would be allowed would be prorated with the other tax districts.

(The 1% revenue growth cap you referred to earlier is a different statute and a different issue.)