The proposed bill seeks to reform property tax regulations in Washington State, with a primary focus on enhancing property tax relief for senior citizens and disabled veterans. Key amendments include raising income thresholds for exemptions, increasing the maximum valuation for property tax relief, and allowing the transfer of exemption status to new residences under specific conditions. The exemption threshold is raised from $50,000 to $70,000 and from $60,000 to $80,000 for different income brackets, while the maximum valuation for exemptions is increased from $70,000 to $200,000, with a new cap of $500,000 for qualifying individuals. The bill also introduces new definitions related to income and establishes a framework for adjusting income thresholds every three years based on county median household income.

Additionally, the bill amends existing laws regarding property tax definitions, collection processes, and exemptions. It sets the state property tax levy rate at $2.095 per $1,000 of assessed value for taxes collected in 2026, with limitations applying for 2027 and beyond. The bill clarifies that "the support of common schools" includes payments on bonds for capital construction projects and aligns definitions of "farmer" and "agricultural product" with existing laws. It also exempts all machinery and equipment owned by farmers used exclusively for agricultural purposes from state property taxes. Overall, the legislation aims to streamline tax collection processes, enhance transparency, and ensure that those facing financial hardship can access necessary exemptions and payment options.

Statutes affected:
Original bill: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630