Property tax

AN ACT Relating to property tax reform by providing additional 1
property tax reductions under the senior citizen property tax relief 2
program, consolidating the state property tax, and making the use of 3
state property tax revenues more transparent; amending RCW 84.36.381, 4
84.36.383, 84.38.020, 84.56.020, 84.52.065, and 84.36.630; and 5
creating new sections. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
PART I8
EXPANDING THE PROPERTY TAX RELIEF PROGRAM FOR RETIRED PERSONS9
Sec. 101. RCW 84.36.381 and 2023 c 147 s 1 are each amended to 10
read as follows: 11
A person is exempt from any legal obligation to pay all or a 12
portion of the amount of excess and regular real property taxes due 13
and payable in the year following the year in which a claim is filed, 14
and thereafter, in accordance with the following: 15
(1)(a) The property taxes must have been imposed upon a residence 16
which was occupied by the person claiming the exemption as a 17
principal place of residence as of the time of filing. However, any 18
person who sells, transfers, or is displaced from his or her 19
residence may transfer his or her exemption status to a replacement 20
H-2810.1
HOUSE BILL 2376
State of Washington 69th Legislature 2026 Regular Session
By Representatives Wylie, Santos, and Thai
Prefiled 01/09/26. Read first time 01/12/26. Referred to Committee
on Finance.
p. 1 HB 2376
residence, but no claimant may receive an exemption on more than one 1
residence in any year. Moreover, confinement of the person to a 2
hospital, nursing home, assisted living facility, adult family home, 3
or home of a relative for the purpose of long-term care does not 4
disqualify the claim of exemption if: 5
(i) The residence is temporarily unoccupied; 6
(ii) The residence is occupied by a spouse or a domestic partner 7
and/or a person financially dependent on the claimant for support; or8
(iii) The residence is rented for the purpose of paying nursing 9
home, hospital, assisted living facility, or adult family home costs.10
(b) For the purpose of this subsection (1), "relative" means any 11
individual related to the claimant by blood, marriage, or adoption;12
(2) The person claiming the exemption must have owned, at the 13
time of filing, in fee, as a life estate, or by contract purchase, 14
the residence on which the property taxes have been imposed or if the 15
person claiming the exemption lives in a cooperative housing 16
association, corporation, or partnership, such person must own a 17
share therein representing the unit or portion of the structure in 18
which he or she resides. For purposes of this subsection, a residence 19
owned by a marital community or state registered domestic partnership 20
or owned by cotenants is deemed to be owned by each spouse or each 21
domestic partner or each cotenant, and any lease for life is deemed a 22
life estate; 23
(3)(a) The person claiming the exemption must be:24
(i) Sixty-one years of age or older on December 31st of the year 25
in which the exemption claim is filed, or must have been, at the time 26
of filing, retired from regular gainful employment by reason of 27
disability; or 28
(ii) A veteran of the armed forces of the United States entitled 29
to and receiving compensation from the United States department of 30
veterans affairs at: 31
(A) A combined service-connected evaluation rating of 80 percent 32
or higher; or 33
(B) A total disability rating for a service-connected disability 34
without regard to evaluation percent. 35
(b) However, any surviving spouse or surviving domestic partner 36
of a person who was receiving an exemption at the time of the 37
person's death will qualify if the surviving spouse or surviving 38
domestic partner is 57 years of age or older and otherwise meets the 39
requirements of this section; 40
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(4)(a) The amount that the person is exempt from an obligation to 1
pay is calculated on the basis of combined disposable income, as 2
defined in RCW 84.36.383. 3
(b) If the person claiming the exemption was retired for two 4
months or more of the assessment year, the combined disposable income 5
of such person must be calculated by multiplying the average monthly 6
combined disposable income of such person during the months such 7
person was retired by 12. 8
(c) If the income of the person claiming exemption is reduced for 9
two or more months of the assessment year by reason of the death of 10
the person's spouse or the person's domestic partner, or when other 11
substantial changes occur in disposable income that are likely to 12
continue for an indefinite period of time, the combined disposable 13
income of such person must be calculated by multiplying the average 14
monthly combined disposable income of such person after such 15
occurrences by 12. 16
(d)(i) If the income of the person claiming the exemption 17
increases as a result of a cost-of-living adjustment to social 18
security benefits or supplemental security income in an amount that 19
would disqualify the applicant from eligibility, the applicant is not 20
disqualified but instead maintains eligibility. 21
(ii) The continued eligibility under this subsection applies to 22
applications for property taxes levied for collection in calendar 23
year 2024. 24
(e) If it is necessary to estimate income to comply with this 25
subsection (4), the assessor may require confirming documentation of 26
such income prior to May 31st of the year following application;27
(5)(a) A person who otherwise qualifies under this section and 28
has a combined disposable income equal to or less than income 29
threshold 3 is exempt from all excess property taxes, the 30
((additional)) state property tax imposed under RCW 84.52.065(((2))), 31
and the portion of the regular property taxes authorized pursuant to 32
RCW 84.55.050 and approved by the voters, if the legislative 33
authority of the county or city imposing the additional regular 34
property taxes identified this exemption in the ordinance placing the 35
RCW 84.55.050 measure on the ballot; and 36
(b)(i) A person who otherwise qualifies under this section and 37
has a combined disposable income equal to or less than income 38
threshold 2 but greater than income threshold 1 is exempt from all 39
regular property taxes on the greater of (($50,000)) $70,000 or 40
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((35)) 45 percent of the valuation of his or her residence, but not 1
to exceed (($70,000)) $200,000 of the valuation of his or her 2
residence; or 3
(ii) A person who otherwise qualifies under this section and has 4
a combined disposable income equal to or less than income threshold 1 5
is exempt from all regular property taxes on the greater of 6
(($60,000)) $80,000 or ((60)) 80 percent of the valuation of his or 7
her residence, but not to exceed $500,000 of the valuation of his or 8
her residence; 9
(6)(a) For a person who otherwise qualifies under this section 10
and has a combined disposable income equal to or less than income 11
threshold 3, the valuation of the residence is the assessed value of 12
the residence on the later of January 1, 1995, or January 1st of the 13
assessment year the person first qualifies under this section. If the 14
person subsequently fails to qualify under this section only for one 15
year because of high income, this same valuation must be used upon 16
requalification. If the person fails to qualify for more than one 17
year in succession because of high income or fails to qualify for any 18
other reason, the valuation upon requalification is the assessed 19
value on January 1st of the assessment year in which the person 20
requalifies. If the person transfers the exemption under this section 21
to a different residence, the valuation of the different residence is 22
the assessed value of the different residence on January 1st of the 23
assessment year in which the person transfers the exemption.24
(b) In no event may the valuation under this subsection be 25
greater than the true and fair value of the residence on January 1st 26
of the assessment year. 27
(c) This subsection does not apply to subsequent improvements to 28
the property in the year in which the improvements are made. 29
Subsequent improvements to the property must be added to the value 30
otherwise determined under this subsection at their true and fair 31
value in the year in which they are made. 32
Sec. 102. RCW 84.36.383 and 2024 c 119 s 1 are each amended to 33
read as follows: 34
As used in RCW 84.36.381 through 84.36.389, unless the context 35
clearly requires otherwise: 36
(1) "Accessory dwelling unit" means a separate, autonomous 37
residential dwelling unit that provides complete independent living 38
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facilities for one or more persons and includes permanent provisions 1
for living, sleeping, eating, cooking, and sanitation.2
(2) "Combined disposable income" means the disposable income of 3
the person claiming the exemption, plus the disposable income of his 4
or her spouse or domestic partner, and the disposable income of each 5
cotenant occupying the residence for the assessment year, less the 6
standard deduction amount or amounts paid by the person claiming the 7
exemption or his or her spouse or domestic partner during the 8
assessment year for the items in this subsection (2). In determining 9
combined disposable income, the person claiming the exemption may 10
choose to use the standard deduction amount or the total itemized 11
amount of the following items: 12
(a) Drugs supplied by prescription of a medical practitioner 13
authorized by the laws of this state or another jurisdiction to issue 14
prescriptions; 15
(b) The treatment or care of either person received in the home 16
or in a nursing home, assisted living facility, or adult family home;17
(c) Health care insurance premiums for medicare under Title XVIII 18
of the social security act; 19
(d) Costs related to medicare supplemental policies as defined in 20
Title 42 U.S.C. Sec. 1395ss; 21
(e) Durable medical equipment, mobility enhancing equipment, 22
medically prescribed oxygen, and prosthetic devices as defined in RCW 23
82.08.0283; 24
(f) Long-term care insurance as defined in RCW 48.84.020;25
(g) Cost-sharing amounts as defined in RCW 48.43.005;26
(h) Nebulizers as defined in RCW 82.08.803; 27
(i) Medicines of mineral, animal, and botanical origin 28
prescribed, administered, dispensed, or used in the treatment of an 29
individual by a person licensed under chapter 18.36A RCW;30
(j) Ostomic items as defined in RCW 82.08.804;31
(k) Insulin for human use; 32
(l) Kidney dialysis devices; and 33
(m) Disposable devices used to deliver drugs for human use as 34
defined in RCW 82.08.935. 35
(3) "Cotenant" means a person who resides with the person 36
claiming the exemption and who has an ownership interest in the 37
residence. 38
(4) "County median household income" means the median household 39
income estimates for the state of Washington by county of the legal 40
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address of the principal place of residence, as published by the 1
office of financial management. 2
(5) "Department" means the state department of revenue.3
(6) "Disability" has the same meaning as provided in 42 U.S.C. 4
Sec. 423 (d)(1)(A) as amended prior to January 1, 2005, or such 5
subsequent date as the department may provide by rule consistent with 6
the purpose of this section. 7
(7) "Disposable income" means adjusted gross income as defined in 8
the federal internal revenue code, as amended prior to January 1, 9
1989, or such subsequent date as the director may provide by rule 10
consistent with the purpose of this section, plus all of the 11
following items to the extent they are not included in or have been 12
deducted from adjusted gross income: 13
(a) Capital gains, other than gain excluded from income under 14
section 121 of the federal internal revenue code to the extent it is 15
reinvested in a new principal residence; 16
(b) Amounts deducted for loss; 17
(c) Amounts deducted for depreciation; 18
(d) Pension and annuity receipts; 19
(e) Military pay and benefits other than attendant-care and 20
medical-aid payments; 21
(f) Veterans benefits, other than: 22
(i) Attendant-care payments; 23
(ii) Medical-aid payments; 24
(iii) Disability compensation, as defined in Title 38, part 3, 25
section 3.4 of the Code of Federal Regulations, as of January 1, 26
2008; ((and))27
(iv) Dependency and indemnity compensation, as defined in Title 28
38, part 3, section 3.5 of the Code of Federal Regulations, as of 29
January 1, 2008; and30
(v) Combat-related special compensation under 10 U.S.C. Sec. 31
1413a; 32
(g) Federal social security act and railroad retirement benefits;33
(h) Dividend receipts; and 34
(i) Interest received on state and municipal bonds.35
(8) "Income threshold 1" means: 36
(a) For taxes levied for collection in calendar years prior to 37
2020, a combined disposable income equal to $30,000;38
(b) For taxes levied for collection in calendar years 2020 39
through 2023, a combined disposable income equal to the greater of 40
p. 6 HB 2376
"income threshold 1" for the previous year or 45 percent of the 1
county median household income; ((and))2
(c) For taxes levied for collection in calendar year s 2024 ((and 3
thereafter)) through 2026, a combined disposable income equal to the 4
greater of "income threshold 1" for the previous year or 50 percent 5
of the county median household income ((, adjusted every three years 6
beginning August 1, 2023, as provided in RCW 84.36.385(8))); and7
(d) For taxes levied for collection in calendar years 2027 and 8
thereafter, a combined disposable income equal to the greater of 9
"income threshold 1" for the previous year or 60 percent of the 10
county median household income, adjusted every three years beginning 11
August 1, 2023, as provided in RCW 84.36.385(8). 12
(9) "Income threshold 2" means: 13
(a) For taxes levied for collection in calendar years prior to 14
2020, a combined disposable income equal to $35,000;15
(b) For taxes levied for collection in calendar years 2020 16
through 2023, a combined disposable income equal to the greater of 17
"income threshold 2" for the previous year or 55 percent of the 18
county median household income; ((and))19
(c) For taxes levied for collection in calendar year s 2024 ((and 20
thereafter)) through 2026, a combined disposable income equal to the 21
greater of "income threshold 2" for the previous year or 60 percent 22
of the county median household income ((, adjusted every three years 23
beginning August 1, 2023, as provided in RCW 84.36.385(8))); and24
(d) For taxes levied for collection in calendar years 2027 and 25
thereafter, a combined disposable income equal to the greater of 26
"income threshold 2" for the previous year or 70 percent of the 27
county median household income, adjusted every three years beginning 28
August 1, 2023, as provided in RCW 84.36.385(8). 29
(10) "Income threshold 3" means: 30
(a) For taxes levied for collection in calendar years prior to 31
2020, a combined disposable income equal to $40,000;32
(b) For taxes levied for collection in calendar years 2020 33
through 2023, a combined disposable income equal to the greater of 34
"income threshold 3" for the previous year or 65 percent of the 35
county median household income; ((and))36
(c) For taxes levied for collection in calendar year s 2024 ((and 37
thereafter)) through 2026, a combined disposable income equal to the 38
greater of "income threshold 3" for the previous year or 70 percent 39
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of the county median household income ((, adjusted every three years 1
beginning August 1, 2023, as provided in RCW 84.36.385(8))); and2
(d) For taxes levied for collection in calendar years 2027 and 3
thereafter, a combined disposable income equal to the greater of 4
"income threshold 3" for the previous year or 80 percent of the 5
county median household income, adjusted every three years beginning 6
August 1, 2023, as provided in RCW 84.36.385(8). 7
(11) "Principal place of residence" means a residence occupied 8
for more than six months each calendar year by a person claiming an 9
exemption under RCW 84.36.381. 10
(12) The term "real property" also includes a mobile home which 11
has substantially lost its identity as a mobile unit by virtue of its 12
being fixed in location upon land owned or leased by the owner of the 13
mobile home and placed on a foundation (posts or blocks) with fixed 14
pipe, connections with sewer, water, or other utilities. A mobile 15
home located on land leased by the owner of the mobile home is 16
subject, for tax billing, payment, and collection purposes, only to 17
the personal property provisions of chapter 84.56 RCW and RCW 18
84.60.040. 19
(13) The term "residence" means a single-family dwelling unit 20
whether such unit be separate or part of a multiunit dwelling, may 21
include one accessory dwelling unit and includes the land on which 22
such dwellings stand not to exceed one acre, except that a residence 23
includes any additional property up to a total of five acres that 24
comprises the residential parcel if this larger parcel size is 25
required under land use regulations. The term also includes a share 26
ownership in a cooperative housing association, corporation, or 27
partnership if the person claiming exemption can establish that his 28
or her share represents the specific unit or portion of such 29
structure in which he or she resides. The term also includes a 30
single-family dwelling situated upon lands the fee of which is vested 31
in the United States or any instrumentality thereof including an 32
Indian tribe or in the state of Washington, and notwithstanding the 33
provisions of RCW 84.04.080 and 84.04.090, such a residence is deemed 34
real property. 35
(14) "Standard deduction amount" means $7,500 for the person 36
claiming the exemption plus an additional $7,500 for the person's 37
spouse or domestic partner.38
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Sec. 103. RCW 84.38.020 and 2023 c 147 s 4 are each amended to 1
read as follows: 2
The definitions in this section apply throughout this chapter 3
unless the context clearly requires otherwise. 4
(1)(a) "Claimant" means a person who either elects or is required 5
under RCW 84.64.050 to defer payment of the special assessments 6
and/or real property taxes accrued on the claimant's residence by 7
filing a declaration to defer as provided by this chapter.8
(b) When two or more individuals of a household file or seek to 9
file a declaration to defer, they may determine between them as to 10
who the claimant is. 11
(2) "Devisee" has the same meaning as provided in RCW 21.35.005.12
(3) "Equity value" means the amount by which the fair market 13
value of a residence as determined from the records of the county 14
assessor exceeds the total amount of any liens or other obligations 15
against the property. 16
(4) "Heir" has the same meaning as provided in RCW 21.35.005.17
(5) "Income threshold" means: (a) For taxes levied for collection 18
in calendar years prior to 2020, a combined disposable income equal 19
to $45,000; ((and)) (b) for taxes levied for collection in calendar 20
year 2020 ((and thereafter )) through 2026 , a combined disposable 21
income equal to the greater of the income threshold for the previous 22
year, or 75 percent of the county median household income ; and (c) 23
for taxes levied for collection in calendar year 2027 and thereafter, 24
a combined disposable income equal to the greater of the income 25
threshold for the previous year, or 90 percent of the county median 26
household income , adjusted every three years beginning August 1, 27
2023, as provided in RCW 84.36.385(8). Beginning with the adjustment 28
made by August 1, 2023, as provided in RCW 84.36.385(8), if the 29
income threshold in a county is not adjusted based on percentage of 30
county median income as provided in this subsection, then the income 31
threshold must be adjusted based on the growth of the consumer price 32
index for all urban consumers (CPI-U) for the prior ((twelve)) 12-33
month period as published by the United States bureau of labor 34
statistics. In no case may the adjustment be greater than one 35
percent. The adjusted threshold must be rounded to the nearest one 36
dollar. If the income threshold adjustment is negative, the income 37
threshold for the prior year continues to apply. 38
(6) "Local government" means any city, town, county, water-sewer 39
district, public utility district, port district, irrigation 40
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district, flood control district, or any other municipal corporation, 1
quasi-municipal corporation, or other political subdivision 2
authorized to levy special assessments. 3
(7) "Real property taxes" means ad valorem property taxes levied 4
on a residence in this state in the preceding calendar year.5
(8) "Residence" has the meaning given in RCW 84.36.383.6
(9) "Special assessment" means the charge or obligation imposed 7
by a local government upon property specially benefited.8
PART II9
REQUIRING PROPERTY TAX STATEMENTS TO LIST THE STATE PROPERTY TAX AS 10
THE STATE SCHOOL LEVY11
Sec. 201. RCW 84.56.020 and 2023 c 376 s 1 are each amended to 12
read as follows: 13
Treasurers' tax collection duties.14
(1) The county treasurer must be the receiver and collector of 15
all taxes extended upon the tax rolls of the county, whether levied 16
for state, county, school, bridge, road, municipal or other purposes, 17
and also of all fines, forfeitures or penalties received by any 18
person or officer for the use of his or her county. No treasurer may 19
accept tax payments or issue receipts for the same until the 20
treasurer has completed the tax roll for the current year's 21
collection and provided notification of the completion of the roll. 22
Notification may be accomplished electronically, by posting a notice 23
in the office, or through other written communication as determined 24
by the treasurer. All real and personal property taxes and 25
assessments made payable by the provisions of this title are due and 26
payable to the county treasurer on or before the 30th day of April 27
and, except as provided in this section, are delinquent after that 28
date. 29
Tax statements.30
(2)(a) Tax statements for the current year's collection must be 31
distributed to each taxpayer on or before March 15th provided that:32
(i) All city and other taxing district budgets have been 33
submitted to county legislative authorities by November 30th per RCW 34
84.52.020; 35
(ii) The county legislative authority in turn has certified taxes 36
levied to the county assessor in accordance with RCW 84.52.070; and37
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(iii) The county assessor has delivered the tax roll to the 1
county treasurer by January 15th per RCW 84.52.080.2
(b) Each tax statement must include a notice that checks for 3
payment of taxes may be made payable to "Treasurer of . . . . . . 4
County" or other appropriate office, but tax statements may not 5
include any suggestion that checks may be made payable to the name of 6
the individual holding the office of treasurer nor any other 7
individual. 8
(c) Each tax statement distributed to an address must include a 9
notice with information describing the: 10
(i) Property tax exemption program pursuant to RCW 84.36.379 11
through 84.36.389; and 12
(ii) Property tax deferral program pursuant to chapter 84.38 RCW.13
(d) Each tax statement must identify the state property tax as 14
the "state school levy."15
Tax payment due dates.16
On-time tax payments: First-half taxes paid by April 30th and 17
second-half taxes paid by October 31st.18
(3)(a) When the total amount of tax or special assessments on 19
personal property or on any lot, block or tract of real property 20
payable by one person is $50 or more, and if one-half of such tax is 21
paid on or before the 30th day of April, the remainder of such tax is 22
due and payable on or before the following 31st day of October and is 23
delinquent after that date. 24
(b) Payments generated by an automated check processing service 25
or payments sent via United States mail with no discernable postmark 26
date and received within three business days of the 30th day of April 27
or the 31st day of October, as required under (a) of this subsection, 28
are not delinquent. 29
Delinquent tax payments for current year: First-half taxes paid 30
after April 30th.31
(4)(a) When the total amount of tax or special assessments on any 32
lot, block or tract of real property, personal property, or on any 33
mobile home payable by one person is $50 or more, and if one-half of 34
such tax is paid after the 30th day of April but before the 31st day 35
of October, together with the applicable interest and penalty on the 36
full amount of tax payable for that year, the remainder of such tax 37
is due and payable on or before the following 31st day of October and 38
is delinquent after that date. 39
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(b) Payments generated by an automated check processing service 1
or payments sent via United States mail with no discernable postmark 2
date and received within three business days of the 30th day of April 3
or the 31st day of October, as required under (a) of this subsection, 4
are not delinquent. 5
Delinquent tax payments: Interest, penalties, and treasurer 6
duties.7
(5)(a) Except as provided in (c) of this subsection, delinquent 8
taxes under this section are subject to interest as provided in this 9
subsection computed on a monthly basis on the amount of tax 10
delinquent from the date of delinquency until paid. Interest must be 11
calculated at the rate as described below. 12
(i) Until December 31, 2022, the interest rate is 12 percent per 13
annum for all nonresidential real property, residential real 14
property, and personal property. 15
(ii) Beginning January 1, 2023, interest rates are as follows:16
(A) Nine percent per annum for all residential real property with 17
four or fewer units per taxable parcel, including manufactured/mobile 18
homes as defined in RCW 59.20.030 for taxes levied in 2023 or after; 19
or 20
(B) Twelve percent per annum for all other property.21
(b)(i) Penalties on delinquent taxes under this section may not 22
be assessed beginning January 1, 2022, and through December 31, 2022.23
(ii) Beginning January 1, 2023, delinquent taxes under this 24
section are subject to penalties for nonresidential real property, 25
residential real property with greater than four units per taxable 26
parcel, and for personal property as follows: 27
(A) A penalty of three percent of the amount of tax delinquent is 28
assessed on the tax delinquent on June 1st of the year in which the 29
tax is due. 30
(B) An additional penalty of eight percent is assessed on the 31
delinquent tax amount on December 1st of the year in which the tax is 32
due. 33
(iii) Penalties may not be assessed on residential real property 34
with four or fewer units per taxable parcel, including manufactured/35
mobile homes as defined in RCW 59.20.030. 36
(c)(i) If a taxpayer is successfully participating in a payment 37
agreement under subsection (15)(b) of this section or a partial 38
payment program pursuant to subsection (15)(c) of this section, the 39
county treasurer may not assess additional penalties on delinquent 40
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taxes that are included within the payment agreement. Interest and 1
penalties that have been assessed prior to the payment agreement 2
remain due and payable as provided in the payment agreement.3
(ii) The following remain due and payable as provided in any 4
payment agreement: 5
(A) Interest that has been assessed prior to the payment 6
agreement; and 7
(B) Penalties assessed prior to January 1, 2022, that have been 8
assessed prior to the payment agreement. 9
(6) A county treasurer must provide notification to each taxpayer 10
whose taxes have become delinquent under subsections (4) and (5) of 11
this section. The delinquency notice must specify where the taxpayer 12
can obtain information regarding: 13
(a) Any current tax or special assessments due as of the date of 14
the notice; 15
(b) Any delinquent tax or special assessments due, including any 16
penalties and interest, as of the date of the notice; and17
(c) Where the taxpayer can pay his or her property taxes directly 18
and contact information, including but not limited to the phone 19
number, for the statewide foreclosure hotline recommended by the 20
Washington state housing finance commission. 21
(7) Within 90 days after the expiration of two years from the 22
date of delinquency (when a taxpayer's taxes have become delinquent), 23
the county treasurer must provide the name and property address of 24
the delinquent taxpayer to a homeownership resource center or any 25
other designated local or state entity recommended by the Washington 26
state housing finance commission. 27
Collection of foreclosure costs.28
(8)(a) When real property taxes become delinquent and prior to 29
the filing of the certificate of delinquency, the treasurer is 30
authorized to assess and collect tax foreclosure avoidance costs.31
(b) When tax foreclosure avoidance costs are collected, such 32
costs must be credited to the county treasurer service fund account, 33
except as otherwise directed. 34
(c) For purposes of chapter 84.64 RCW, any taxes, interest, or 35
penalties deemed delinquent under this section remain delinquent 36
until such time as all taxes, interest, and penalties for the tax 37
year in which the taxes were first due and payable have been paid in 38
full. 39
Periods of armed conflict.40
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(9) Subsection (5) of this section notwithstanding, no interest 1
or penalties may be assessed during any period of armed conflict 2
regarding delinquent taxes imposed on the personal residences owned 3
by active duty military personnel who are participating as part of 4
one of the branches of the military involved in the conflict and 5
assigned to a duty station outside the territorial boundaries of the 6
United States. 7
State of emergency.8
(10) During a state of emergency declared under RCW 9
43.06.010(12), the county treasurer, on his or her own motion or at 10
the request of any taxpayer affected by the emergency, may grant 11
extensions of the due date of any taxes payable under this section as 12
the treasurer deems proper. 13
Retention of funds from interest.14
(11) All collections of interest on delinquent taxes must be 15
credited to the county current expense fund. 16
(12) For purposes of this chapter, "interest" means both interest 17
and penalties. 18
Retention of funds from property foreclosures and sales.19
(13) The direct cost of foreclosure and sale of real property, 20
and the direct fees and costs of distraint and sale of personal 21
property, for delinquent taxes, must, when collected, be credited to 22
the operation and maintenance fund of the county treasurer 23
prosecuting the foreclosure or distraint or sale; and must be used by 24
the county treasurer as a revolving fund to defray the cost of 25
further foreclosure, distraint, and sale because of delinquent taxes 26
without regard to budget limitations and not subject to indirect 27
costs of other charges. 28
Tax due dates and options for tax payment collections.29
Electronic billings and payments.30
(14) For purposes of this chapter, and in accordance with this 31
section and RCW 36.29.190, the treasurer may collect taxes, 32
assessments, fees, rates, interest, and charges by electronic billing 33
and payment. Electronic billing and payment may be used as an option 34
by the taxpayer, but the treasurer may not require the use of 35
electronic billing and payment. Electronic bill presentment and 36
payment may be on a monthly or other periodic basis as the treasurer 37
deems proper for: 38
(a) Delinquent tax year payments; and 39
(b) Prepayments of current tax. 40
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Tax payments.1
Prepayment for current taxes.2
(15)(a) The treasurer may accept prepayments for current year 3
taxes by any means authorized. All prepayments must be paid in full 4
by the due date specified in subsection (16) of this section.5
Payment agreements for current year taxes.6
(b)(i) The treasurer may provide, by electronic means or 7
otherwise, a payment agreement that provides for payment of current 8
year taxes, inclusive of prepayment collection charges. The payment 9
agreement must be signed by the taxpayer and treasurer or the 10
treasurer's deputy prior to the sending of an electronic or 11
alternative bill, which includes a payment plan for current year 12
taxes. 13
Payment agreements for delinquent year taxes.14
(ii)(A) The treasurer may provide, by electronic means or 15
otherwise, a payment agreement for payment of past due delinquencies. 16
The payment agreement must be signed by the taxpayer and treasurer or 17
the treasurer's deputy prior to the sending of an electronic or 18
alternative bill, which includes a payment plan for past due 19
delinquent taxes and charges. 20
(B) Tax payments received by a treasurer for delinquent year 21
taxes from a taxpayer participating on a payment agreement must be 22
applied first to the oldest delinquent year unless such taxpayer 23
requests otherwise. 24
Partial payments: Acceptance of partial payments for current and 25
delinquent taxes.26
(c)(i) In addition to the payment agreement program in (b) of 27
this subsection, the treasurer may accept partial payment of any 28
current and delinquent taxes including interest and penalties by any 29
means authorized including electronic bill presentment and payments.30
(ii) All tax payments received by a treasurer for delinquent year 31
taxes from a taxpayer paying a partial payment must be applied first 32
to the oldest delinquent year unless such taxpayer requests 33
otherwise. 34
Payment for delinquent taxes.35
(d) Payments on past due taxes must include collection of the 36
oldest delinquent year, which includes interest, penalties, and taxes 37
within an ((eighteen)) 18-month period, prior to filing a certificate 38
of delinquency under chapter 84.64 RCW or distraint pursuant to RCW 39
84.56.070. 40
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Due date for tax payments.1
(16) All taxes upon real and personal property made payable by 2
the provisions of this title are due and payable to the treasurer on 3
or before the 30th day of April and are delinquent after that date. 4
The remainder of the tax is due and payable on or before the 5
following 31st of October and is delinquent after that date. All 6
other assessments, fees, rates, and charges are delinquent after the 7
due date. 8
Electronic funds transfers.9
(17) A county treasurer may authorize payment of:10
(a) Any current property taxes due under this chapter by 11
electronic funds transfers on a monthly or other periodic basis; and12
(b) Any past due property taxes, penalties, and interest under 13
this chapter by electronic funds transfers on a monthly or other 14
periodic basis. Delinquent taxes are subject to interest and 15
penalties, as provided in subsection (5) of this section. All tax 16
payments received by a treasurer from a taxpayer paying delinquent 17
year taxes must be applied first to the oldest delinquent year unless 18
such taxpayer requests otherwise. 19
Payment for administering prepayment collections.20
(18) The treasurer must pay any collection costs, investment 21
earnings, or both on past due payments or prepayments to the credit 22
of a county treasurer service fund account to be created and used 23
only for the payment of expenses incurred by the treasurer, without 24
limitation, in administering the system for collecting prepayments.25
Waiver of interest and penalties for qualified taxpayers subject 26
to foreclosure.27
(19) No earlier than 60 days prior to the date that is three 28
years after the date of delinquency, the treasurer must waive all 29
outstanding interest and penalties on delinquent taxes due from a 30
taxpayer if the property is subject to an action for foreclosure 31
under chapter 84.64 RCW and the following requirements are met:32
(a) The taxpayer is income-qualified under RCW 84.36.381(5)(a), 33
as verified by the county assessor; 34
(b) The taxpayer occupies the property as their principal place 35
of residence; and 36
(c) The taxpayer has not previously received a waiver on the 37
property as provided under this subsection. 38
Definitions.39
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(20) The definitions in this subsection apply throughout this 1
section unless the context clearly requires otherwise.2
(a) "Electronic billing and payment" means statements, invoices, 3
or bills that are created, delivered, and paid using the internet. 4
The term includes an automatic electronic payment from a person's 5
checking account, debit account, or credit card. 6
(b) "Internet" has the same meaning as provided in RCW 7
19.270.010. 8
(c) "Tax foreclosure avoidance costs" means those direct costs 9
associated with the administration of properties subject to and prior 10
to foreclosure. Tax foreclosure avoidance costs include:11
(i) Compensation of employees for the time devoted to 12
administering the avoidance of property foreclosure; and13
(ii) The cost of materials, services, or equipment acquired, 14
consumed, or expended in administering tax foreclosure avoidance 15
prior to the filing of a certificate of delinquency.16
PART III17
CONSOLIDATING THE STATE PROPERTY TAX18
Sec. 301. RCW 84.52.065 and 2022 c 56 s 13 are each amended to 19
read as follows: 20
(1) Except as otherwise provided in this section, subject to the 21
limitations in RCW 84.55.010, in each year the state must levy for 22
collection in the following year for the support of common schools of 23
the state a tax of ((three dollars and sixty cents )) $3.60 per 24
((thousand dollars )) $1,000 of assessed value upon the assessed 25
valuation of all taxable property within the state adjusted to the 26
state equalized value in accordance with the indicated ratio fixed by 27
the state department ((of revenue)). 28
(2)(a) ((In addition to the tax authorized under subsection (1) 29
of this section, the state must levy an additional property tax for 30
the support of common schools of the state.31
(i) For taxes levied for collection in calendar years 2018 32
through 2021, the rate of tax is the rate necessary to bring the 33
aggregate rate for state property tax levies levied under this 34
subsection and subsection (1) of this section to a combined rate of 35
two dollars and forty cents per thousand dollars of assessed value in 36
calendar year 2019 and two dollars and seventy cents per thousand 37
dollars of assessed value in calendar years 2018, 2020, and 2021. The 38
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state property tax levy rates provided in this subsection (2)(a)(i) 1
are based upon the assessed valuation of all taxable property within 2
the state adjusted to the state equalized value in accordance with 3
the indicated ratio fixed by the state department of revenue.4
(ii) For taxes levied for collection in calendar year 2022 and 5
thereafter, the tax authorized under this subsection (2) is subject 6
to the limitations of chapter 84.55 RCW.7
(b)(i) Except as otherwise provided in this subsection, all taxes 8
collected under this subsection (2) must be deposited into the state 9
general fund.10
(ii) For fiscal year 2019, taxes collected under this subsection 11
(2) must be deposited into the education legacy trust account for the 12
support of common schools.13
(3) For taxes levied for collection in calendar years 2019 14
through 2021, the state property taxes levied under subsections (1) 15
and (2) of this section are not subject to the limitations in chapter 16
84.55 RCW.17
(4)(a) For taxes levied for collection in calendar year 2022 and 18
thereafter, the aggregate rate limit for state property taxes levied 19
under subsections (1) and (2) of this section is three dollars and 20
sixty cents per thousand dollars of assessed value upon the assessed 21
valuation of all taxable property within the state adjusted to the 22
state equalized value in accordance with the indicated ratio fixed by 23
the state department of revenue.24
(b) If the aggregate rate of state property taxes levied under 25
subsections (1) and (2) of this section for collection in any 26
calendar year after 2021 exceeds $3.60 per $1,000 of assessed value, 27
each rate must be reduced on a pro rata basis until the aggregate 28
rate no longer exceeds $3.60 per $1,000 of assessed value.29
(5) For property taxes levied for collection in calendar years 30
2019 through 2021, the rate of tax levied under subsection (1) of 31
this section is the actual rate that was levied for collection in 32
calendar year 2018 under subsection (1) of this section.33
(6))) For taxes levied for collection in calendar year 2026, the 34
state property tax levy rate is $2.095 per $1,000 of assessed value. 35
The state property tax levy rate provided in this subsection (2)(a) 36
is based upon the assessed valuation of all taxable property within 37
the state adjusted to the state equalized value in accordance with 38
the indicated ratio fixed by the department.39
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(b) For taxes levied for collection in calendar year 2027 and 1
thereafter, the limitations of chapter 84.55 RCW apply.2
(3) As used in this section, "the support of common schools" 3
includes the payment of the principal and interest on bonds issued 4
for capital construction projects for the common schools.5
Sec. 302. RCW 84.36.630 and 2017 3rd sp.s. c 13 s 312 are each 6
amended to read as follows: 7
(1) All machinery and equipment owned by a farmer that is 8
personal property is exempt from property taxes levied for any state 9
purpose((, including the additional state property tax imposed under 10
RCW 84.52.065(2),)) if it is used exclusively in growing and 11
producing agricultural products during the calendar year for which 12
the claim for exemption is made. 13
(2) (("Farmer")) For purposes of this section, "farmer" and 14
"agricultural product" have the same meaning as defined in RCW 15
82.04.213. 16
(3) A claim for exemption under this section must be filed with 17
the county assessor together with the statement required under RCW 18
84.40.190, for exemption from taxes payable the following year. The 19
claim must be made solely upon forms as prescribed and furnished by 20
the department ((of revenue)). 21
PART IV22
MISCELLANEOUS23
NEW SECTION. Sec. 401. Except for sections 101 (5)(b), 102, and 24
103 of this act, this act applies to taxes levied for collection in 25
2026 and thereafter.26
NEW SECTION. Sec. 402. Sections 101(5)(b), 102, and 103 of this 27
act apply to taxes levied for collection in 2027 and thereafter.28
NEW SECTION. Sec. 403. RCW 82.32.805 and 82.32.808 do not apply 29
to this act.30
NEW SECTION. Sec. 404. This act is necessary for the support of 31
the state government and its existing public institutions.32
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