The bill amends existing tax laws to allow counties with populations of at least 900,000 but not exceeding 1,500,000 to exempt the value of accessory dwelling units (ADUs) from taxation, provided certain conditions are met. These conditions include that the improvement must represent 30% or less of the original structure's value, the unit must be rented to low-income households, and the taxpayer must submit an affidavit verifying the tenant's income. Additionally, the bill requires that the exemption be applied for annually and includes provisions for counties to establish policies to assist tenants when the exemption expires.

The legislation also mandates a review by the joint legislative audit and review committee to assess the costs and benefits of the tax exemption program, with a report due by December 1, 2027. If the review indicates that the exemption successfully increases the number of ADUs rented to low-income households, the legislature intends to extend the expiration date of the tax preferences. The act is set to expire on January 1, 2034, and applies to taxes levied for collection in 2026 and thereafter.

Statutes affected:
Original Bill: 84.36.400
Engrossed Bill: 84.36.400
Bill as Passed Legislature: 84.36.400
Session Law: 84.36.400