House Bill 1106 expands eligibility for property tax relief to more disabled military veterans in Washington state. It lowers the required combined service-connected disability rating from 80% to 40% or higher for veterans to qualify for property tax exemptions on their primary residence. This change allows a broader group of disabled veterans to receive a reduction in their annual property tax obligations, provided they meet other existing criteria related to residency, ownership, and income thresholds. The bill aims to recognize the sacrifices of veterans by making property tax relief more accessible.
SB 5604 creates a 20-year property tax exemption for new housing projects located within a designated "station area" (within 0.5 miles of a major transit stop) in Washington. To qualify, projects must include at least 20% of units affordable to low- or moderate-income households (defined as 50-80% of local median income) for 50 years, with long-term covenants ensuring affordability. Local governments must adopt regulations for station areas and oversee compliance, including recording deeds to maintain affordability. The bill aims to incentivize housing near transit by reducing development costs while mandating long-term affordability for residents.
HB 1206 expands eligibility for Washington's multifamily tax exemption program to all counties required or choosing to plan under the Growth Management Act (RCW 36.70A.040), removing a previous population threshold. The bill amends tax code definitions to include any qualifying county under the Growth Management Act, regardless of unincorporated population size. This change directly affects counties that must develop or choose to develop comprehensive plans under state law, enabling them to offer tax incentives for multifamily housing projects. The key mechanism is revising eligibility criteria to eliminate the prior minimum population requirement for counties seeking to use this program. The policy change aims to broaden access to tax incentives for affordable housing development across more jurisdictions.
HB 1763 imposes a 6% tax on short-term rental platforms (like Airbnb) starting January 2026. Revenue from this tax funds local affordable housing programs and housing infrastructure projects (such as water, sewer, and transportation systems) in counties and cities. Local governments must use the funds exclusively for homeless services, shelters, or infrastructure, with requirements including limiting single-family units to 2,000 square feet and requiring urban annexation for projects within growth boundaries. The bill directly affects short-term rental platforms (as taxpayers) and local governments (as fund recipients).
Senate Bill 5529 amends the county population requirements for jurisdictions that can offer property tax exemptions on accessory dwelling units (ADUs). It lowers the minimum population threshold, allowing counties with populations between 900,000 and 1,500,000 to also exempt ADUs from taxation. This aims to incentivize homeowners to rent these units to low-income households, provided conditions like tenant income verification and rent limits are met. For these newly eligible counties, the exemption specifically applies to detached ADUs and requires a local legislative authority resolution.
HB 2027 increases real estate transfer taxes on property sales above specific thresholds to fund affordable housing programs. The tax applies at 1.1% for sales under $500,000, 1.28% for $500,000-$1.5 million, 2.75% for $1.5-$3 million, and 3% for sales over $3 million. Revenue from these taxes will support state housing programs targeting low- and middle-income households, including seniors, veterans, farmworkers, and others facing housing insecurity. The bill aims to build over 500,000 new affordable homes for residents earning under 50% of area median income by addressing supply shortages.
HB 1094 creates a property tax exemption for nonprofit organizations that loan, lease, or rent property to government entities (like cities, counties, or state agencies) for character-building, benevolent, protective, or rehabilitative social services - such as youth programs, homeless shelters, or community health initiatives. It directly affects qualifying nonprofits that provide these services and government agencies using their facilities. The key provision expands existing tax exemptions by allowing property used by government for these purposes to be exempt, even if owned by a nonprofit. This policy change aims to reduce costs for nonprofits and governments delivering essential community services, effective July 2025.
Senate Bill 5647 establishes a new exemption from the real estate excise tax for the sale of properties designated as "qualified affordable housing." This means that sellers of these specific types of affordable homes would not be required to pay this tax. The bill achieves this by amending the existing state law that defines what constitutes a "sale" for real estate excise tax purposes, adding this new category of exempt transactions. This policy change aims to reduce the tax burden associated with the sale of affordable housing.
HB 1040 allows people eligible for Washington’s property tax exemption programs (for seniors or disabled residents) to exclude up to $6,000 annually in rental income from their primary residence when calculating income eligibility for the exemption. This applies only to long-term rentals (not short-term rentals like Airbnb, which must still be reported as taxable income). The bill amends existing tax code to include rental income as part of "combined disposable income" calculations, adjusting how income thresholds are applied. It directly affects low-income homeowners in qualifying exemption programs who rent out space in their primary home.
This constitutional amendment proposal (HJR 4207) would allow Washington voters to approve a homestead property tax exemption for primary residences. If approved, it would permit the legislature to create a tax break reducing the taxable value of qualifying homes by up to $250,000 for state taxes only. The amendment includes safeguards to prevent shifting tax burdens to other properties and allows for annual adjustments to the exemption amount. It requires voter approval at the next general election, as the proposed constitutional change is not yet law.
