Property tax exemption

AN ACT Relating to increasing the personal property tax 1
exemption; amending RCW 84.36.110, 84.36.120, and 84.48.065; creating 2
a new section; and providing a contingent effective date.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 84.36.110 and 2006 c 281 s 2 are each amended to 5
read as follows: 6
The following property shall be exempt from taxation:7
(1) All household goods and furnishings in actual use by the 8
owner thereof in equipping and outfitting his or her residence or 9
place of abode and not for sale or commercial use, and all personal 10
effects held by any person for his or her exclusive use and benefit 11
and not for sale or commercial use. 12
(2)(a) The personal property, other than specified in subsection 13
(1) of this section, of ((each head of a family )) a person liable to 14
assessment and taxation of which the ((individual)) person is the 15
actual and bona fide owner to an amount of ((fifteen thousand 16
dollars)) $50,000 of true and fair value. This exemption shall not 17
apply to any private motor vehicle or mobile home. ((If the county 18
assessor is satisfied that all of the personal property of any person 19
is exempt from taxation under the provisions of this statute or any 20
H-0050.2
HOUSE BILL 1004
State of Washington 69th Legislature 2025 Regular Session
By Representatives Leavitt, Volz, Ryu, Parshley, Walen, Schmidt,
Shavers, Richards, Paul, Goodman, Rule, Pollet, Fey, and Reeves
Prefiled 12/03/24. Read first time 01/13/25. Referred to Committee
on Finance.
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other statute providing exemptions for personal property, no listing 1
of such property shall be required. However,))2
(b) A person claiming an exemption under this subsection (2) must 3
attest, under the penalty of perjury subject to the penalties in RCW 4
84.40.130(2), that:5
(i)(A) The total replacement cost new of its taxable personal 6
property is less than $50,000, or (B) if the personal property 7
described in this subsection exceeds in value the amount allowed as 8
exempt, then a complete list of said personal property shall be made 9
as provided by law, and the county assessor shall deduct the amount 10
of the exemption authorized by this subsection from the total amount 11
of the assessment and impose taxes on the remainder; and12
(ii) The person is claiming only one such exemption statewide for 13
the calendar year. 14
Sec. 2. RCW 84.36.120 and 2008 c 6 s 708 are each amended to 15
read as follows: 16
For the purposes of RCW 84.36.110 (("head of a family" shall be 17
construed to include a surviving spouse or surviving domestic partner 18
who has neither remarried nor entered into a subsequent domestic 19
partnership, any person receiving an old age pension under the laws 20
of this state and any citizen of the United States, over the age of 21
sixty-five years, who has resided in the state of Washington 22
continuously for ten years.)), the following definitions apply:23
(1) "Personal effects" shall be construed to mean and include 24
such tangible property as usually and ordinarily attends the person 25
such as wearing apparel, jewelry, toilet articles and the like.26
(2) "Private motor vehicle" shall be construed to mean and 27
include all motor vehicles used for the convenience or pleasure of 28
the owner and carrying a licensing classification other than motor 29
vehicle for hire, auto stage, auto stage trailer, motor truck, motor 30
truck trailer or dealers' licenses. 31
(3) "Mobile home" shall be construed to mean and include all 32
trailers of the type designed as facilities for human habitation and 33
which are capable of being moved upon the public streets and highways 34
and which are more than thirty-five feet in length or more than eight 35
feet in width. 36
Sec. 3. RCW 84.48.065 and 2015 c 174 s 2 are each amended to 37
read as follows: 38
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(1)(a) The county assessor or treasurer may cancel or correct 1
assessments on the assessment or tax rolls which are erroneous due to 2
manifest errors in description, double assessments, clerical errors 3
in extending the rolls, and such manifest errors in the listing of 4
the property that do not involve a revaluation of property, except in 5
the case that a taxpayer produces proof that an authorized land use 6
authority has made a definitive change in the property's land use 7
designation. In such a case, correction of the assessment or tax 8
rolls may be made notwithstanding the fact that the action involves a 9
revaluation of property. Manifest errors that do not involve a 10
revaluation of property include the assessment of property exempted 11
by law from taxation ((or the failure to deduct the exemption allowed 12
by law to the head of a family )). When the county assessor cancels or 13
corrects an assessment, the assessor must send a notice to the 14
taxpayer in accordance with RCW 84.40.045, advising the taxpayer that 15
the action has been taken and notifying the taxpayer of the right to 16
appeal the cancellation or correction to the county board of 17
equalization, in accordance with RCW 84.40.038. When the county 18
assessor or treasurer cancels or corrects an assessment, a record of 19
the action must be prepared, setting forth therein the facts relating 20
to the error. The record must also set forth by legal description all 21
property belonging exclusively to the state, any county, or any 22
municipal corporation whose property is exempt from taxation, upon 23
which there remains, according to the tax roll, any unpaid taxes.24
(b) Except as otherwise provided in this subsection (1)(b), no 25
manifest error cancellation or correction, including a cancellation 26
or correction made due to a definitive change of land use 27
designation, may be made for any period more than three years 28
preceding the year in which the error is discovered. However, a 29
manifest error cancellation or correction may be made for a period 30
more than three years preceding the year in which the error is 31
discovered if authorized by the county legislative authority and the 32
manifest error cancellation or correction would result in a refund or 33
reduction of taxes for a property owner. 34
(2)(a) In the case of a definitive change of land use 35
designation, an assessor must make corrections that involve a 36
revaluation of property to the assessment roll when:37
(i) The assessor and taxpayer have signed an agreement as to the 38
true and fair value of the taxpayer's property setting forth in the 39
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agreement the valuation information upon which the agreement is 1
based; and 2
(ii) The assessment roll has previously been certified in 3
accordance with RCW 84.40.320. 4
(b) In all other cases, an assessor must make corrections that 5
involve a revaluation of property to the assessment roll when:6
(i) The assessor and taxpayer have signed an agreement as to the 7
true and fair value of the taxpayer's property setting forth in the 8
agreement the valuation information upon which the agreement is 9
based; and 10
(ii) The following conditions are met: 11
(A) The assessment roll has previously been certified in 12
accordance with RCW 84.40.320; 13
(B) The taxpayer has timely filed a petition with the county 14
board of equalization pursuant to RCW 84.40.038 for the current 15
assessment year; 16
(C) The county board of equalization has not yet held a hearing 17
on the merits of the taxpayer's petition. 18
(3) The assessor must issue a supplementary roll or rolls 19
including such cancellations and corrections, and the assessment and 20
levy have the same force and effect as if made in the first instance, 21
and the county treasurer must proceed to collect the taxes due on the 22
rolls as modified. 23
NEW SECTION. Sec. 4. RCW 82.32.805 and 82.32.808 do not apply 24
to this act.25
NEW SECTION. Sec. 5. Section 1 of this act takes effect January 26
1, 2026, if the proposed amendment to Article VII, section 1 of the 27
state Constitution (House Joint Resolution No. . . . . (H-0049/25)), 28
providing for the personal property exemption of $50,000, is validly 29
submitted to and is approved and ratified by the voters at the next 30
general election. If the proposed amendment is not approved and 31
ratified, section 1 of this act is void in its entirety.32
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