SB 5776 creates a program for "American dream homes" - owner-occupied single-family homes under 1,500 square feet designed for low-income households. It requires cities to limit permitting fees to $1,250 per home, provides property tax exemptions for seven years, and offers tax credits to builders based on the home's selling price. Homes must stay affordable for low-income buyers (defined as households earning ≤70% of local median income) for seven years after the first sale, with restrictions preventing resale above affordability limits unless due to foreclosure. The program expires December 31, 2036, and applies only to homes meeting specific income and size criteria.
HB 1044 increases the real estate excise tax fee from $5.00 to $20.00 per transaction for all real estate sales in Washington. This fee directly affects buyers and sellers in real estate transactions, with the revenue funding administrative assistance for county assessors and treasurers. The bill creates new funds to support county offices in managing property tax administration and electronic processing systems, requiring counties to use these funds exclusively for technology upgrades compatible with state systems. It also modifies collection procedures, mandating monthly reporting of transaction proceeds to the state treasurer.
HB 2025 adds a new $300 annual tax credit for low-income renters in Washington who pay sales or use tax. Eligible residents must have rented their primary residence for at least 183 days during the year and meet existing credit requirements. The credit, effective starting in 2026, will be adjusted annually for inflation based on the Seattle consumer price index. This directly supports residential tenants whose rent includes property tax costs, expanding the existing working families' tax credit program.
SB 5151 limits annual state spending growth to the average annual increase in Washington's median worker wage, starting in 2026. It requires the state to calculate a spending cap based on the prior decade's median wage growth and directs any excess revenue above this cap toward lowering property tax rates. The bill applies to all state general fund spending and mandates that the Economic and Revenue Forecast Council determine excess revenues by December 1 each year, which the Department of Revenue must use to reduce property tax rates by the following year. This directly affects state budget decisions and homeowners through potential property tax relief.
HB 2049 aims to enhance funding for K-12 education and communities by modifying state and local property tax authority and adjusting the school funding formula. The bill revises the maximum dollar amount school districts can levy for enrichment, setting it as the lesser of $2.50 per $1,000 of assessed value or a per-pupil limit. This per-pupil limit is updated with specific "inflation enhancements" through 2030 and establishes a new base amount starting in 2031, impacting funding based on student enrollment. Additionally, it adjusts how the state provides local effort assistance funding to supplement these school district enrichment levies.
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.
HB 1746 adjusts how Washington state provides supplemental funding to public schools based on local property tax levies. It calculates state assistance by comparing a school district's actual levy rate (per $1,000 assessed value) to a $1.50 threshold, with full funding for districts meeting or exceeding that rate. The bill extends this formula to tribal schools (starting 2022) and charter schools (starting 2025), capping per-student assistance at $2,000 (adjusted for inflation) based on prior-year levy data. This funding is separate from the state's basic education program and directly affects school districts, tribal education compact schools, and charter schools that rely on local levies.
HJR 4200 proposes a constitutional amendment to increase Washington state's personal property tax exemption from $15,000 to $50,000 per head of household for taxable personal property. If approved by voters, this change would directly affect homeowners and residents who own personal property (like vehicles or equipment) subject to state taxation. The amendment would modify Article VII, Section 1 of the state constitution to adjust the exemption amount while maintaining other constitutional tax principles, such as uniformity and public purpose requirements. This measure requires voter approval at the next general election after the secretary of state publishes the amendment notice in local newspapers.
SB 5020 would exempt Washington homeowners aged 75 or older from all state and local property taxes on their primary residence, regardless of household income. To qualify, seniors must own the home (as fee simple, life estate, or contract purchase) and occupy it as their main home at the time of filing. The exemption transfers to a new primary residence if the senior sells or moves due to displacement, but does not apply to secondary homes. It takes effect for property taxes due in 2026 and later, with temporary absences for long-term care (e.g., nursing home stays) not disqualifying eligibility if the original home remains occupied by a spouse or dependent.
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.
