The proposed bill seeks to reform property tax regulations in Washington State, with a primary focus on enhancing the senior citizen property tax relief program. Key amendments include raising income thresholds for exemptions, increasing the regular property tax exemption from $50,000 to $70,000, and raising the maximum valuation for certain exemptions from $70,000 to $200,000. Additionally, a standard deduction of $7,500 for claimants and their spouses or domestic partners is introduced, and rental income from the claimant's principal residence can now be included in income calculations, capped at $6,000 per year. The bill also clarifies definitions related to the program and aims to improve transparency in the use of state property tax revenues.

Moreover, the bill introduces amendments to property tax deferral and collection processes, allowing households to designate claimants for tax deferrals and adjusting income thresholds based on county median household income and the consumer price index for the years 2020 through 2027. It mandates that property tax statements identify the state property tax as the "state school levy," revises interest rates on delinquent taxes, and outlines electronic payment options. 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 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