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 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, funded by legislative appropriations and other sources, to assist counties with the costs of the program.

Furthermore, the bill establishes new procedures for the distribution of funds related to property tax exemptions, requiring the state treasurer to make annual distributions based on certifications from the Department of Revenue, with specific deadlines for data submission and certification. It also amends existing laws regarding the county board of equalization, allowing for the review of claims for the primary residence property tax exemption and mandating timely notifications to taxpayers. The act is set to 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