The proposed bill aims to enhance housing safety and security in Washington by establishing a primary residence property tax exemption to alleviate the financial burden on homeowners, particularly those on fixed incomes. This exemption will allow homeowners to exempt a portion of the assessed value of their principal residence from state property taxes, specifically the greater of $100,000 or 60% of the county's median residential assessed value, effective for taxes collected in 2028 and beyond. The bill outlines the application process, eligibility criteria, and conditions for claiming the exemption, ensuring accessibility for various housing arrangements, including cooperative ownership and community land trusts.

Additionally, the bill creates a dedicated account for administering the property tax exemption, with initial distributions beginning in calendar year 2026 based on the estimated number of exemptions processed by counties. It mandates that counties establish a dedicated fund for these exemptions, accessible only by the county assessor. The bill also amends existing laws regarding the county board of equalization, specifying notification timelines for taxpayers and maintaining accurate records. It introduces a timeline for implementation, contingent upon voter approval of a proposed constitutional amendment regarding residential property tax exemptions, with provisions ensuring that existing rights and obligations remain unaffected.

Statutes affected:
Original Bill: 43.135.060
Substitute Bill: 84.48.010