The bill introduces optional municipal property tax exemptions for various categories of properties, including long-term rental units converted from short-term rentals, mobile home parks, real property rented to low-income families, and properties owned by first-time homebuyers. Specifically, municipalities are empowered to exempt or partially exempt from taxation structures that have transitioned to long-term rentals, mobile home parks for up to ten years post-construction or renovation, and properties rented to low-income families where rent does not exceed 30% of their income. Additionally, exemptions are available for properties owned and occupied as a permanent residence by local residents and for first-time homebuyers.

Furthermore, the bill amends the existing law regarding tax refunds. It changes the interest rate for refunds from a fixed rate of eight percent to a variable rate that is three percentage points above the 12th Federal Reserve District discount rate as of January 2 of the payment year. The bill also clarifies that if a taxpayer overpays their taxes, the municipality must refund the excess amount without the previous stipulation of interest on such refunds. These changes aim to provide more flexibility and support for municipalities in managing property taxes and to ensure fair treatment of taxpayers.

Statutes affected:
HB0013A, AM HB 13, introduced 01/10/2025: 29.45.050
HB0013B, AM SSHB 13, introduced 03/10/2025: 29.45.050
HB0013C, AM CSSSHB 13(CRA), introduced 04/25/2025: 29.45.050
HB0013D, AM SCS CSSSHB 13(CRA), introduced 03/18/2026: 29.45.050, 34.03.360, U.S.C, 29.45.500