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 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, including provisions for cooperative housing and community land trusts. Additionally, it creates a dedicated account for administering the exemption, providing funding to counties based on the number of applications processed, with initial distributions set at a higher rate for the first year.

The legislation also amends existing laws regarding the county board of equalization, specifying that the board may review claims for the primary residence property tax exemption and must notify taxpayers of their decisions within 45 days. It establishes new procedures for the distribution of funds related to property tax exemptions, with annual distributions starting August 1, 2026, based on certifications from the department. The bill emphasizes that these estimates and certifications cannot be overturned by a court without clear evidence of willful misconduct. The act will take effect on January 1, 2026, contingent upon the approval of a proposed constitutional amendment regarding residential real property tax exemptions, and it clarifies that it does not affect existing rights or obligations under the amended sections.

Statutes affected:
Original Bill: 43.135.060