The bill seeks to reform property tax regulations in Washington State by enhancing the senior citizen property tax relief program, consolidating the state property tax, and improving transparency in the use of state property tax revenues. Key changes include raising the income threshold for full property tax exemptions for seniors from $50,000 to $70,000 and increasing the percentage of residence valuation eligible for exemption from 35% to 45% for certain income brackets. The bill also introduces new definitions related to combined disposable income, allowing for a standard deduction of $7,500 for claimants and an additional $7,500 for spouses or domestic partners, while excluding rental income up to $6,000 from disposable income calculations.

Additionally, the bill establishes a state property tax levy rate of $2.075355 per $1,000 of assessed value for taxes collected in 2027, with provisions for adjustments based on county median household income. It mandates that tax statements identify the state property tax as the "state school levy" and includes measures for electronic billing and payment options. The bill also outlines responsibilities for county treasurers regarding tax collection and provides relief measures for qualified taxpayers facing foreclosure. By March 1, 2027, the Department of Revenue is required to report on the potential impact of the new consolidated state property tax levy rate, ensuring that the legislature has the necessary information to consider future modifications.

Statutes affected:
Original bill: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630
Substitute bill: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630
Engrossed substitute: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630
Bill as passed Legislature: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630
Session law: 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, 84.36.630