The proposed bill introduces a new homestead property tax exemption in Washington State, designed to provide tax relief to homeowners and renters. It defines key terms such as "claimant," "homestead exemption," and "residence," and sets eligibility criteria for the exemption, which will apply to the first $500,000 of assessed value for each residential tax parcel, adjusted annually based on state levy growth. The bill requires claimants to submit specific forms to claim and renew the exemption, while also mandating public outreach about its availability. Additionally, it amends existing laws to incorporate the new exemption, detailing the roles of county assessors and legislative authorities in its administration, including processes for denial, cancellation, and appeals.

Moreover, the bill establishes a renter's credit program effective January 1, 2028, allowing eligible claimants to receive refunds based on property taxes paid through rent for qualified residences. It outlines the application process, eligibility criteria, and provisions for late applications and appeals. The bill also mandates the development of a centralized computer system for data exchange among relevant entities and includes amendments to the appeals process for tax determinations related to the renter's credit. The act is set to take effect on January 1, 2027, contingent upon the approval of a proposed constitutional amendment regarding the homestead exemption and renter's credit, with a provision that the act will be void if the amendment is not ratified.

Statutes affected:
Original bill: 84.48.010, 84.69.020, 82.03.190