The bill seeks to enhance transit-oriented development in Washington by amending the Revised Code to provide property tax exemptions for housing projects near major transit stations. It introduces a 20-year exemption from ad valorem property taxation for new housing construction, conversion, and rehabilitation, contingent upon meeting specific criteria such as location within designated station areas and affordability requirements. At least 20% of the dwelling units must be affordable to low-income households for a minimum of 50 years. The bill also establishes criteria for designating station areas, mandates local jurisdictions to adopt regulations to facilitate the tax exemption, and specifies that no new exemptions will be granted after January 1, 2032.

Additionally, the bill revises the process for obtaining limited tax exemptions for multiunit housing developments, including defined timeframes for assessments and the possibility of extending deadlines for construction or rehabilitation. It mandates annual reporting for property owners receiving tax exemptions and introduces a biennial review process by the Department of Commerce starting in 2027. The legislation also addresses impact fees for early learning facilities and low-income housing, allowing local governments to grant exemptions and establishing a 50% reduction in impact fees for qualifying projects. Furthermore, it introduces a sales and use tax deferral program for the conversion of underutilized commercial properties and the construction of new multifamily housing, requiring that at least 10% of units be designated for low-income households.

Statutes affected:
Original Bill: 84.14.010, 84.14.030, 84.14.060, 84.14.070, 84.14.090, 84.14.100, 84.14.110, 82.02.060, 43.31.565, 82.45.060, 82.59.007, 82.59.010, 82.59.020, 82.59.030, 82.59.040, 82.59.070, 82.59.130, 82.59.080