This bill amends existing legislation regarding property tax exemptions for accessory dwelling units (ADUs) in Washington State, specifically targeting counties with populations of 900,000 to 1,500,000. It allows these counties to exempt the value of ADUs from taxation if certain conditions are met, including that the unit is rented to low-income households, defined as those with an income at or below 60% of the median household income for the area. The bill requires taxpayers to submit an affidavit verifying tenant income and a lease agreement of at least 12 months. Additionally, it mandates that the exemption must be applied for annually and outlines the responsibilities of county legislative authorities in administering the program.

The bill also includes provisions for a performance review of the tax preferences associated with the exemption, to be conducted by the joint legislative audit and review committee by December 1, 2027. This review will assess the costs and benefits of the exemption program, including its impact on the availability of affordable housing for low-income households. The act is set to expire on January 1, 2034, and the new provisions will apply to taxes levied for collection in 2026 and thereafter.

Statutes affected:
Original Bill: 84.36.400
Engrossed Bill: 84.36.400