The proposed bill seeks to improve housing safety and security in Washington by introducing a primary residence property tax exemption aimed at easing the financial strain on homeowners, especially those with fixed incomes. This exemption will allow homeowners to exclude 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's median residential assessed value, effective for taxes collected starting in 2028. The bill outlines an application process requiring homeowners to file by April 1st of the year before the exemption takes effect and mandates the Department of Revenue to provide online application options and publish relevant data.

Furthermore, the bill establishes a primary residence property tax exemption administration account to support counties in managing the exemption program, with initial funding based on the number of applications processed. It emphasizes the protection of homeowners from displacement and foreclosure, recognizing the importance of homeownership for wealth creation and community stability. The legislation also includes amendments to the county board of equalization's procedures, allowing for the review of exemption claims and requiring timely communication of decisions to taxpayers. The act is set to take effect on January 1, 2026, pending voter approval of a constitutional amendment related to residential real property tax exemptions. If the amendment is not ratified, the act will be void.

Statutes affected:
Original Bill: 43.135.060
Substitute Bill: 84.48.010