This bill aims to increase the working families' tax credit in Washington State to better reflect the economic impact of property taxes included in rental amounts for residential tenants. It amends RCW 82.08.0206 to provide a refundable tax credit for eligible low-income individuals starting from calendar years after January 1, 2022. The bill specifies the definitions of eligible low-income persons, income, and qualifying children, and outlines the refund amounts based on the number of qualifying children. Notably, the refund amounts will be adjusted for inflation starting January 1, 2024, and the percentage rate of remittance reductions will be adjusted annually beginning January 1, 2023.

Additionally, the bill introduces a new provision that provides an extra $300 refund for eligible individuals who have leased or rented their primary residence in Washington for at least 183 days during the year for which the credit is claimed, starting in calendar year 2026. It also establishes requirements for applicants to submit documentation, such as lease agreements, to substantiate their eligibility for this additional refund. The bill includes various administrative provisions, including application processes, privacy protections, and the department's authority to assess overpayments. Importantly, refunds will not be provided for any period before January 1, 2025.

Statutes affected:
Original Bill: 82.08.0206