The proposed bill aims to enhance housing safety and security in Washington by establishing a primary residence property tax exemption to alleviate financial burdens on homeowners, particularly those on fixed incomes. The exemption will be the greater of $100,000 or 60% of the county's median residential assessed value, with annual adjustments. Homeowners must apply by April 1st of the year prior to receiving the exemption, which will remain in effect until the property is sold or the homeowner no longer qualifies. The bill also creates a dedicated account for administering this exemption, funded by legislative appropriations and other sources, to support counties in managing the program and protect homeowners from displacement due to rising property taxes.

Additionally, the bill introduces new procedures for the distribution of funds related to property tax exemptions for primary residences, mandating annual distributions by August 1st starting in 2026, with the Department certifying amounts by July 25th. It amends existing laws regarding the county board of equalization, requiring timely notifications to taxpayers and allowing reviews of property tax exemption claims. The bill will take effect on January 1, 2026, contingent upon the approval of a proposed constitutional amendment regarding residential real property tax exemptions; if the amendment is not ratified, the act will be void.

Statutes affected:
Original Bill: 43.135.060