The proposed bill seeks to reform property tax regulations in Washington State, with a particular focus on enhancing the property tax relief program for senior citizens. Key amendments include raising the income exemption threshold from $50,000 to $70,000 and increasing the percentage of property valuation eligible for exemption from 35% to 45%. The bill also introduces new income thresholds that will be adjusted every three years based on county median household income, ensuring the program remains responsive to economic changes. Additionally, it clarifies definitions related to the property tax relief program, such as "combined disposable income" and sets the standard deduction amount at $7,500 for claimants and their spouses or domestic partners.

Moreover, the bill consolidates the state property tax by adjusting the levy rate to a flat rate of $3.60 per $1,000 of assessed value and eliminates previous provisions for additional property taxes for common schools, streamlining the tax structure. It mandates that tax statements identify the state property tax as the "state school levy" for clarity. The legislation also includes provisions for electronic billing and payment options, waivers of interest and penalties for qualified taxpayers facing foreclosure, and establishes exemptions for machinery and equipment owned by farmers used exclusively for agricultural purposes. Overall, these changes aim to provide greater financial relief to senior citizens and improve the accessibility and transparency of the property tax relief program.

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