This bill amends existing legislation to modify the population threshold for counties that can exempt the value of accessory dwelling units (ADUs) from taxation, specifically to encourage the rental of these units to low-income households. The bill removes the previous requirement that only counties with a population of 1,500,000 or more could offer such exemptions. It establishes criteria for the exemption, including that the ADU must represent 30 percent or less of the original structure's value, must be rented to low-income households (defined as those earning 60 percent or less of the median household income), and must not be occupied by immediate family members of the taxpayer. The exemption can continue as long as the unit is leased to a low-income household.

Additionally, the bill includes provisions for the administration of the exemption, allowing counties to collect fees for administrative costs and designate officials to verify compliance. It also mandates a review by the joint legislative audit and review committee to assess the effectiveness of the tax preferences, with a report due by December 1, 2029. The act is set to expire on January 1, 2034, and will apply to taxes levied for collection in 2026 and thereafter.

Statutes affected:
Original Bill: 84.36.400