SB 5770 creates a new state property tax exemption for Washington homeowners' primary residences, reducing taxes on a portion of their home's value. The exemption equals the greater of $100,000 or 60% of the county's median home value (updated annually), applied to state taxes only (not local taxes). Homeowners must apply yearly by April 1st with proof of residency and personal information like Social Security numbers, and it applies to all primary homes including community land trusts and cooperatives. The bill aims to prevent displacement and help middle- and fixed-income families maintain housing stability by making home ownership more affordable. This policy change directly affects homeowners who qualify as primary residents, with the exemption taking effect for taxes levied in 2028 and later.
HB 1179 would allow Washington seniors aged 61+ and disabled veterans with VA disability ratings of 80% or higher to freeze their property tax valuation. Qualifying residents would pay no tax on a portion of their home's value based on income: lower-income households get full relief on all taxes, while others receive partial relief up to $70,000 of home value. The exemption uses "combined disposable income" to determine eligibility and applies the frozen valuation (based on 1995 or qualification year) to reduce taxes. This law would take effect for property taxes collected starting in 2026.
HB 1867 allows Washington counties or cities to impose a real estate excise tax of up to 0.5% on home sales, with proceeds dedicated exclusively to developing affordable housing for very low, low, and moderate-income residents and those with special needs. Local governments must first gain voter approval through a majority vote in an election, either via a resolution from local officials or a petition signed by 10% of eligible voters. The tax revenue must be managed through a competitive grant process for nonprofit housing providers, housing authorities, or public agencies, with spending plans requiring public hearings. Counties and cities cannot levy this tax if the county has already implemented a similar tax under prior law. This bill directly affects local governments and homebuyers/sellers in communities that choose to adopt the tax.
SB 5679 expands eligibility for Washington's multifamily tax exemption program to include all counties required or choosing to plan under the Growth Management Act (RCW 36.70A.040), removing a previous population requirement. This change directly affects counties that must develop comprehensive plans under state law, allowing them to apply for the tax exemption program for multifamily housing projects. The bill amends definitions in RCW 84.14.010 to define "county" as any jurisdiction meeting the planning requirement, and adds new criteria for designating residential targeted areas, including mandatory displacement risk evaluations for county-designated areas after July 2021. The policy change aims to increase affordable housing opportunities by broadening access to tax incentives for qualifying multifamily developments.
HB 1165 expands Washington state's property tax exemption program to help seniors, people retired due to disability, and veterans with disabilities keep their homes. The bill creates three income thresholds based on combined disposable income (including certain medical expenses), setting limits at 50%, 60%, and 70% of county median household income for 2024-2026. Homeowners meeting these income thresholds for their primary residence qualify for reduced property taxes, with thresholds adjusted every three years. This directly affects eligible residents who own or rent their primary home and meet the income criteria.
HB 2024 creates a state property tax exemption for Washington homeowners' primary residences, reducing their state tax burden. It exempts either $100,000 of a home's assessed value or 60% of the county's median home value (whichever is greater), applied after other existing exemptions. This directly benefits primary residence owners - especially fixed-income households and those at risk of displacement - by lowering annual state property tax costs. The exemption applies only to state levies (not local taxes) and requires an annual application by April 1st, with verification to ensure it applies to only one residence.
SB 5591 creates a local sales and use tax reimbursement program for developers building affordable housing projects. It allows cities or counties to adopt programs that reimburse developers for sales taxes paid on construction materials, provided the project includes at least 50% units affordable to low-income households (costing ≤30-38% of income) for 40 years. Developers must apply to local governments, meet strict affordability and timeline requirements (completion within 3 years), and maintain affordability for the full 40-year period. The program applies only to projects meeting Washington’s defined "affordable housing" standards and requires local government approval before implementation.
