The proposed bill seeks to reform property tax regulations in Washington State, with a focus on enhancing the property tax relief program for senior citizens. Key amendments include expanding eligibility criteria for exemptions based on age and income, allowing individuals to transfer their exemption status to a new residence, and increasing the maximum exemption amounts from $50,000 to $70,000. The bill also raises the percentage of property valuation eligible for exemption from 35% to 45% and introduces a standard deduction of $7,500 for claimants and their spouses or domestic partners. Additionally, it consolidates the state property tax and modifies definitions related to disposable income, ensuring that income thresholds are adjusted every three years to remain relevant to county median household income.

Moreover, the bill clarifies various property tax definitions and establishes a new state property tax levy rate of $2.095 per $1,000 of assessed value for taxes collected in 2026, with limitations applying to subsequent years. It exempts machinery and equipment owned by farmers from property taxes for state purposes, provided they are used exclusively for agricultural production. The legislation mandates that county treasurers notify taxpayers of delinquent taxes and outlines provisions for waiving interest and penalties for qualified taxpayers facing foreclosure. Overall, the bill aims to streamline property tax processes, enhance clarity for taxpayers, and provide greater financial relief to senior citizens and farmers.

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