The proposed bill seeks to reform property tax regulations in Washington State, with a particular focus on enhancing property tax relief for senior citizens. Key changes include raising income thresholds for tax exemptions, such as increasing the exemption for individuals with a combined disposable income equal to or less than income threshold 1 from $50,000 to $70,000, and for those under income threshold 2 from $60,000 to $80,000. The bill also raises the maximum valuation for property tax exemptions significantly, from $70,000 to $200,000 for certain income levels and from $80,000 to $500,000 for others. Additionally, it introduces new definitions related to combined disposable income and allows claimants to choose between standard or itemized deductions for medical expenses.

Moreover, the bill amends existing laws regarding property tax statements and introduces a new state property tax levy rate of $2.095 per $1,000 of assessed value for taxes collected in 2026. It streamlines the tax structure by removing previous provisions for additional property taxes for common schools and emphasizes timely notifications and collection processes for delinquent taxes. The bill also includes specific exemptions for farmers, stating that all machinery and equipment used exclusively for agricultural production will be exempt from property taxes levied for state purposes. Overall, the legislation aims to provide greater financial relief to senior citizens, enhance clarity in property tax administration, and support state government and public institutions.

Statutes affected:
Original Bill: 84.55.005, 84.04.140, 84.55.0101, 84.36.381, 84.56.020
Substitute Bill: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630