The proposed bill seeks to improve housing safety and security in Washington by introducing a primary residence property tax exemption aimed at reducing the financial burden on homeowners, especially those on fixed incomes. This exemption will allow homeowners to exempt a portion of their principal residence's assessed value from state property taxes, with the exemption amount being the greater of $100,000 or 60% of the county median residential assessed value. The bill outlines the eligibility criteria, application process, and conditions for claiming the exemption, which includes provisions for cooperative housing and community land trusts. The exemption will take effect for taxes collected in 2028 and beyond.

Furthermore, the bill establishes a dedicated account for administering the primary residence property tax exemption, with funds allocated to counties based on the number of applications processed. Initial distributions will begin in 2026, calculated at $10.00 per exemption, with provisions for proportional reductions if funds are insufficient. The legislation also amends existing laws related to the county board of equalization, ensuring timely notification to taxpayers regarding exemption decisions and maintaining accurate records. The bill's effectiveness is contingent upon voter approval of a proposed constitutional amendment regarding residential property tax exemptions, and if not ratified, the act will be void.

Statutes affected:
Original Bill: 43.135.060
Substitute Bill: 84.48.010