The bill amends existing tax laws to allow counties with populations of at least 900,000 but not more than 1,500,000, in addition to those with populations of 1,500,000 or more, to exempt the value of accessory dwelling units (ADUs) from taxation. This exemption is contingent upon several conditions, including that the ADU must represent 30% or less of the original structure's value, be rented to low-income households, and the taxpayer must provide documentation verifying the tenant's income. The bill also requires that the exemption be applied for annually and includes provisions for counties to establish policies to assist tenants when the exemption expires.

Additionally, the bill outlines the responsibilities of county legislative authorities in administering the exemption, including the ability to collect fees for administration and to designate officials to verify compliance. It mandates a review of the tax preferences by the joint legislative audit and review committee by December 1, 2027, to assess the program's effectiveness in increasing the availability of affordable housing. 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