The proposed bill seeks to reform property tax regulations in Washington State, with a particular emphasis on improving the property tax relief program for senior citizens. Key amendments include expanded eligibility criteria for exemptions based on age and income, the ability for individuals to transfer their exemption status to a new residence, and provisions ensuring that temporary confinement in care facilities does not disqualify seniors from receiving benefits. The bill also adjusts income thresholds for eligibility and raises the maximum property valuation limit for exemptions from $70,000 to $200,000 for certain income brackets. Additionally, it introduces new definitions for combined disposable income, allowing for a standard deduction of $7,500 for claimants and their spouses or domestic partners, and includes rental income from living space in the income calculation, capped at $6,000 per year.

Moreover, the bill amends existing laws related to property tax deferral and collection processes, allowing household members to determine the claimant for tax deferral declarations. It defines key terms such as "devisee," "equity value," and "income threshold," with specific adjustments to the income threshold based on county median household income and the consumer price index through 2027. The bill mandates that property tax statements identify the state property tax as the "state school levy" and outlines the responsibilities of county treasurers in tax collection. It also addresses penalties for delinquent taxes, providing a framework for waiving interest and penalties for qualified taxpayers facing foreclosure. Additionally, the bill establishes a state property tax levy rate for 2027 and beyond, clarifies the support of common schools, and amends property tax exemptions for farmers, ensuring that all machinery and equipment used exclusively for agricultural production are exempt from state property taxes.

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