Property tax value freeze

AN ACT Relating to providing a property tax valuation freeze for 1
senior citizens and disabled veterans; amending RCW 84.36.381; and 2
creating a new section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 84.36.381 and 2023 c 147 s 1 are each amended to 5
read as follows: 6
A person is exempt from any legal obligation to pay all or a 7
portion of the amount of excess and regular real property taxes due 8
and payable in the year following the year in which a claim is filed, 9
and thereafter, in accordance with the following: 10
(1)(a) The property taxes must have been imposed upon a residence 11
which was occupied by the person claiming the exemption as a 12
principal place of residence as of the time of filing. However, any 13
person who sells, transfers, or is displaced from his or her 14
residence may transfer his or her exemption status to a replacement 15
residence, but no claimant may receive an exemption on more than one 16
residence in any year. Moreover, confinement of the person to a 17
hospital, nursing home, assisted living facility, adult family home, 18
or home of a relative for the purpose of long-term care does not 19
disqualify the claim of exemption if: 20
(i) The residence is temporarily unoccupied; 21
H-0225.1
HOUSE BILL 1179
State of Washington 69th Legislature 2025 Regular Session
By Representatives Volz, Leavitt, Low, Schmidt, Graham, Shavers,
Couture, Callan, Barkis, Caldier, Rule, Schmick, Nance, and Richards
Prefiled 01/07/25. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1179
(ii) The residence is occupied by a spouse or a domestic partner 1
and/or a person financially dependent on the claimant for support; or2
(iii) The residence is rented for the purpose of paying nursing 3
home, hospital, assisted living facility, or adult family home costs.4
(b) For the purpose of this subsection (1), "relative" means any 5
individual related to the claimant by blood, marriage, or adoption;6
(2) The person claiming the exemption must have owned, at the 7
time of filing, in fee, as a life estate, or by contract purchase, 8
the residence on which the property taxes have been imposed or if the 9
person claiming the exemption lives in a cooperative housing 10
association, corporation, or partnership, such person must own a 11
share therein representing the unit or portion of the structure in 12
which he or she resides. For purposes of this subsection, a residence 13
owned by a marital community or state registered domestic partnership 14
or owned by cotenants is deemed to be owned by each spouse or each 15
domestic partner or each cotenant, and any lease for life is deemed a 16
life estate; 17
(3)(a) The person claiming the exemption must be:18
(i) Sixty-one years of age or older on December 31st of the year 19
in which the exemption claim is filed, or must have been, at the time 20
of filing, retired from regular gainful employment by reason of 21
disability; or 22
(ii) A veteran of the armed forces of the United States entitled 23
to and receiving compensation from the United States department of 24
veterans affairs at: 25
(A) A combined service-connected evaluation rating of 80 percent 26
or higher; or 27
(B) A total disability rating for a service-connected disability 28
without regard to evaluation percent. 29
(b) However, any surviving spouse or surviving domestic partner 30
of a person who was receiving an exemption at the time of the 31
person's death will qualify if the surviving spouse or surviving 32
domestic partner is 57 years of age or older and otherwise meets the 33
requirements of this section; 34
(4)(a) The amount that the person is exempt from an obligation to 35
pay is calculated on the basis of combined disposable income, as 36
defined in RCW 84.36.383. 37
(b) If the person claiming the exemption was retired for two 38
months or more of the assessment year, the combined disposable income 39
of such person must be calculated by multiplying the average monthly 40
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combined disposable income of such person during the months such 1
person was retired by 12. 2
(c) If the income of the person claiming exemption is reduced for 3
two or more months of the assessment year by reason of the death of 4
the person's spouse or the person's domestic partner, or when other 5
substantial changes occur in disposable income that are likely to 6
continue for an indefinite period of time, the combined disposable 7
income of such person must be calculated by multiplying the average 8
monthly combined disposable income of such person after such 9
occurrences by 12. 10
(d)(i) If the income of the person claiming the exemption 11
increases as a result of a cost-of-living adjustment to social 12
security benefits or supplemental security income in an amount that 13
would disqualify the applicant from eligibility, the applicant is not 14
disqualified but instead maintains eligibility. 15
(ii) The continued eligibility under this subsection applies to 16
applications for property taxes levied for collection in calendar 17
year 2024. 18
(e) If it is necessary to estimate income to comply with this 19
subsection (4), the assessor may require confirming documentation of 20
such income prior to May 31st of the year following application;21
(5)(a) A person who otherwise qualifies under this section and 22
has a combined disposable income equal to or less than income 23
threshold 3 is exempt from all excess property taxes, the additional 24
state property tax imposed under RCW 84.52.065(2), and the portion of 25
the regular property taxes authorized pursuant to RCW 84.55.050 and 26
approved by the voters, if the legislative authority of the county or 27
city imposing the additional regular property taxes identified this 28
exemption in the ordinance placing the RCW 84.55.050 measure on the 29
ballot; and 30
(b)(i) A person who otherwise qualifies under this section and 31
has a combined disposable income equal to or less than income 32
threshold 2 but greater than income threshold 1 is exempt from all 33
regular property taxes on the greater of $50,000 or 35 percent of the 34
valuation of his or her residence, but not to exceed $70,000 of the 35
valuation of his or her residence; or 36
(ii) A person who otherwise qualifies under this section and has 37
a combined disposable income equal to or less than income threshold 1 38
is exempt from all regular property taxes on the greater of $60,000 39
or 60 percent of the valuation of his or her residence;40
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(6)(a) For a person who otherwise qualifies under this section 1
((and has a combined disposable income equal to or less than income 2
threshold 3 )), regardless of income level , the valuation of the 3
residence is the assessed value of the residence on the later of 4
January 1, 1995, or January 1st of the assessment year the person 5
first qualifies under this section. ((If the person subsequently 6
fails to qualify under this section only for one year because of high 7
income, this same valuation must be used upon requalification. )) If 8
the person fails to qualify for more than one year in succession 9
((because of high income or fails to qualify )) for any ((other)) 10
reason, the valuation upon requalification is the assessed value on 11
January 1st of the assessment year in which the person requalifies. 12
If the person transfers the exemption under this section to a 13
different residence, the valuation of the different residence is the 14
assessed value of the different residence on January 1st of the 15
assessment year in which the person transfers the exemption.16
(b) In no event may the valuation under this subsection be 17
greater than the true and fair value of the residence on January 1st 18
of the assessment year. 19
(c) This subsection does not apply to subsequent improvements to 20
the property in the year in which the improvements are made. 21
Subsequent improvements to the property must be added to the value 22
otherwise determined under this subsection at their true and fair 23
value in the year in which they are made. 24
NEW SECTION. Sec. 2. This act applies to taxes levied for 25
collection in 2026 and thereafter.26
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