Property tax

AN ACT Relating to property tax reform by expanding and 1
streamlining the senior citizen property tax relief program, 2
consolidating the state property tax, and making the use of state 3
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 AND STREAMLINING THE PROPERTY TAX RELIEF PROGRAM FOR 9
RETIRED PERSONS10
Sec. 101. RCW 84.36.381 and 2025 c 200 s 1 are each amended to 11
read as follows: 12
A person is exempt from any legal obligation to pay all or a 13
portion of the amount of excess and regular real property taxes due 14
and payable in the year following the year in which a claim is filed, 15
and thereafter, in accordance with the following: 16
(1)(a) The property taxes must have been imposed upon a residence 17
which was occupied by the person claiming the exemption as a 18
principal place of residence as of the time of filing. However, any 19
person who sells, transfers, or is displaced from his or her 20
H-3000.1
HOUSE BILL 2621
State of Washington 69th Legislature 2026 Regular Session
By Representatives Wylie, Leavitt, Parshley, and Pollet
Read first time 01/22/26. Referred to Committee on Finance.
p. 1 HB 2621
residence may transfer his or her exemption status to a replacement 1
residence, but no claimant may receive an exemption on more than one 2
residence in any year. Moreover, confinement of the person to a 3
hospital, nursing home, assisted living facility, adult family home, 4
or home of a relative for the purpose of long-term care does not 5
disqualify the claim of exemption if: 6
(i) The residence is temporarily unoccupied; 7
(ii) The residence is occupied by a spouse or a domestic partner 8
and/or a person financially dependent on the claimant for support; or9
(iii) The residence is rented for the purpose of paying nursing 10
home, hospital, assisted living facility, or adult family home costs.11
(b) For the purpose of this subsection (1), "relative" means any 12
individual related to the claimant by blood, marriage, or adoption;13
(2) The person claiming the exemption must have owned, at the 14
time of filing, in fee, as a life estate, or by contract purchase, 15
the residence on which the property taxes have been imposed or if the 16
person claiming the exemption lives in a cooperative housing 17
association, corporation, or partnership, such person must own a 18
share therein representing the unit or portion of the structure in 19
which he or she resides. For purposes of this subsection, a residence 20
owned by a marital community or state registered domestic partnership 21
or owned by cotenants is deemed to be owned by each spouse or each 22
domestic partner or each cotenant, and any lease for life is deemed a 23
life estate; 24
(3)(a) The person claiming the exemption must be:25
(i) Sixty-one years of age or older on December 31st of the year 26
in which the exemption claim is filed, or must have been, at the time 27
of filing, retired from regular gainful employment by reason of 28
disability; or 29
(ii) A veteran of the armed forces of the United States entitled 30
to and receiving compensation from the United States department of 31
veterans affairs at: 32
(A) A combined service-connected evaluation rating of 40 percent 33
or higher; or 34
(B) A total disability rating for a service-connected disability 35
without regard to evaluation percent. 36
(b) However, any surviving spouse or surviving domestic partner 37
of a person who was receiving an exemption at the time of the 38
person's death will qualify if the surviving spouse or surviving 39
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domestic partner is 57 years of age or older and otherwise meets the 1
requirements of this section; 2
(4)(a) The amount that the person is exempt from an obligation to 3
pay is calculated on the basis of combined disposable income, as 4
defined in RCW 84.36.383. 5
(b) If the person claiming the exemption was retired for two 6
months or more of the assessment year, the combined disposable income 7
of such person must be calculated by multiplying the average monthly 8
combined disposable income of such person during the months such 9
person was retired by 12. 10
(c) If the income of the person claiming exemption is reduced for 11
two or more months of the assessment year by reason of the death of 12
the person's spouse or the person's domestic partner, or when other 13
substantial changes occur in disposable income that are likely to 14
continue for an indefinite period of time, the combined disposable 15
income of such person must be calculated by multiplying the average 16
monthly combined disposable income of such person after such 17
occurrences by 12. 18
(d)(i) If the income of the person claiming the exemption 19
increases as a result of a cost-of-living adjustment to social 20
security benefits or supplemental security income in an amount that 21
would disqualify the applicant from eligibility, the applicant is not 22
disqualified but instead maintains eligibility. 23
(ii) The continued eligibility under this subsection applies to 24
applications for property taxes levied for collection in calendar 25
year 2024. 26
(e) If it is necessary to estimate income to comply with this 27
subsection (4), the assessor may require confirming documentation of 28
such income prior to May 31st of the year following application;29
(5)(a) A person who otherwise qualifies under this section and 30
has a combined disposable income equal to or less than income 31
threshold 3 is exempt from all excess property taxes, the 32
((additional)) state property tax imposed under RCW 84.52.065(((2))), 33
and the portion of the regular property taxes authorized pursuant to 34
RCW 84.55.050 and approved by the voters, if the legislative 35
authority of the county or city imposing the additional regular 36
property taxes identified this exemption in the ordinance placing the 37
RCW 84.55.050 measure on the ballot; and 38
(b)(i) A person who otherwise qualifies under this section and 39
has a combined disposable income equal to or less than income 40
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threshold 2 but greater than income threshold 1 is exempt from all 1
regular property taxes on the greater of (($50,000)) $70,000 or 2
((35)) 45 percent of the valuation of his or her residence, but not 3
to exceed (($70,000)) $200,000 of the valuation of his or her 4
residence; or 5
(ii) A person who otherwise qualifies under this section and has 6
a combined disposable income equal to or less than income threshold 1 7
is exempt from all regular property taxes on the greater of 8
(($60,000)) $80,000 or ((60)) 80 percent of the valuation of his or 9
her residence, but not to exceed $500,000 of the valuation of his or 10
her residence; 11
(6)(a) For a person who otherwise qualifies under this section 12
and has a combined disposable income equal to or less than income 13
threshold 3, the valuation of the residence is the assessed value of 14
the residence on the later of January 1, 1995, or January 1st of the 15
assessment year the person first qualifies under this section. If the 16
person subsequently fails to qualify under this section only for one 17
year because of high income, this same valuation must be used upon 18
requalification. If the person fails to qualify for more than one 19
year in succession because of high income or fails to qualify for any 20
other reason, the valuation upon requalification is the assessed 21
value on January 1st of the assessment year in which the person 22
requalifies. If the person transfers the exemption under this section 23
to a different residence, the valuation of the different residence is 24
the assessed value of the different residence on January 1st of the 25
assessment year in which the person transfers the exemption.26
(b) In no event may the valuation under this subsection be 27
greater than the true and fair value of the residence on January 1st 28
of the assessment year. 29
(c) This subsection does not apply to subsequent improvements to 30
the property in the year in which the improvements are made. 31
Subsequent improvements to the property must be added to the value 32
otherwise determined under this subsection at their true and fair 33
value in the year in which they are made. 34
Sec. 102. RCW 84.36.383 and 2024 c 119 s 1 are each amended to 35
read as follows: 36
As used in RCW 84.36.381 through 84.36.389, unless the context 37
clearly requires otherwise: 38
p. 4 HB 2621
(1) "Accessory dwelling unit" means a separate, autonomous 1
residential dwelling unit that provides complete independent living 2
facilities for one or more persons and includes permanent provisions 3
for living, sleeping, eating, cooking, and sanitation.4
(2) "Combined disposable income" means the disposable income of 5
the person claiming the exemption, plus the disposable income of his 6
or her spouse or domestic partner, and the disposable income of each 7
cotenant occupying the residence for the assessment year, less the 8
standard deduction amount or amounts paid or, for purposes of (n) of 9
this subsection (2), received by the person claiming the exemption or 10
his or her spouse or domestic partner during the assessment year for 11
the items in this subsection (2). In determining combined disposable 12
income, the person claiming the exemption may choose to use the 13
standard deduction amount or the total itemized amount of the 14
following items: 15
(a) Drugs supplied by prescription of a medical practitioner 16
authorized by the laws of this state or another jurisdiction to issue 17
prescriptions; 18
(b) The treatment or care of either person received in the home 19
or in a nursing home, assisted living facility, or adult family home;20
(c) Health care insurance premiums for medicare under Title XVIII 21
of the social security act; 22
(d) Costs related to medicare supplemental policies as defined in 23
Title 42 U.S.C. Sec. 1395ss; 24
(e) Durable medical equipment, mobility enhancing equipment, 25
medically prescribed oxygen, and prosthetic devices as defined in RCW 26
82.08.0283; 27
(f) Long-term care insurance as defined in RCW 48.84.020;28
(g) Cost-sharing amounts as defined in RCW 48.43.005;29
(h) Nebulizers as defined in RCW 82.08.803; 30
(i) Medicines of mineral, animal, and botanical origin 31
prescribed, administered, dispensed, or used in the treatment of an 32
individual by a person licensed under chapter 18.36A RCW;33
(j) Ostomic items as defined in RCW 82.08.804;34
(k) Insulin for human use; 35
(l) Kidney dialysis devices; ((and))36
(m) Disposable devices used to deliver drugs for human use as 37
defined in RCW 82.08.935; and38
(n) Rental amounts up to $6,000 per year received from the 39
renting of living space in the person's principal place of residence.40
p. 5 HB 2621
(i) For the purposes of this subsection (2)(n), "rental amount" 1
has the same meaning as in RCW 59.18.030.2
(ii) For the purposes of this subsection (2)(n), amounts received 3
from short-term rentals, as defined in RCW 64.37.010, are not 4
included. Any amounts received from a short-term rental must be 5
reported as income. 6
(3) "Cotenant" means a person who resides with the person 7
claiming the exemption and who has an ownership interest in the 8
residence. 9
(4) "County median household income" means the median household 10
income estimates for the state of Washington by county of the legal 11
address of the principal place of residence, as published by the 12
office of financial management. 13
(5) "Department" means the state department of revenue.14
(6) "Disability" has the same meaning as provided in 42 U.S.C. 15
Sec. 423 (d)(1)(A) as amended prior to January 1, 2005, or such 16
subsequent date as the department may provide by rule consistent with 17
the purpose of this section. 18
(7) "Disposable income" means adjusted gross income as defined in 19
the federal internal revenue code, as amended prior to January 1, 20
1989, or such subsequent date as the director may provide by rule 21
consistent with the purpose of this section, plus all of the 22
following items to the extent they are not included in or have been 23
deducted from adjusted gross income: 24
(a) Capital gains, other than gain excluded from income under 25
section 121 of the federal internal revenue code to the extent it is 26
reinvested in a new principal residence; 27
(b) Amounts deducted for loss; 28
(c) Amounts deducted for depreciation; 29
(d) Pension and annuity receipts; 30
(e) Military pay and benefits other than attendant-care and 31
medical-aid payments; 32
(f) Veterans benefits, other than: 33
(i) Attendant-care payments; 34
(ii) Medical-aid payments; 35
(iii) Disability compensation, as defined in Title 38, part 3, 36
section 3.4 of the Code of Federal Regulations, as of January 1, 37
2008; ((and))38
p. 6 HB 2621
(iv) Dependency and indemnity compensation, as defined in Title 1
38, part 3, section 3.5 of the Code of Federal Regulations, as of 2
January 1, 2008; and3
(v) Combat-related special compensation under 10 U.S.C. Sec. 4
1413a; 5
(g) Federal social security act and railroad retirement benefits;6
(h) Dividend receipts; and 7
(i) Interest received on state and municipal bonds.8
(8) "Income threshold 1" means: 9
(a) For taxes levied for collection in calendar years prior to 10
2020, a combined disposable income equal to $30,000;11
(b) For taxes levied for collection in calendar years 2020 12
through 2023, a combined disposable income equal to the greater of 13
"income threshold 1" for the previous year or 45 percent of the 14
county median household income; ((and))15
(c) For taxes levied for collection in calendar year s 2024 ((and 16
thereafter)) through 2026, a combined disposable income equal to the 17
greater of "income threshold 1" for the previous year or 50 percent 18
of the county median household income ((, adjusted every three years 19
beginning August 1, 2023, as provided in RCW 84.36.385(8))); and20
(d) For taxes levied for collection in calendar years 2027 and 21
thereafter, a combined disposable income equal to the greater of 22
"income threshold 1" for the previous year or 60 percent of the 23
county median household income, adjusted every three years beginning 24
August 1, 2023, as provided in RCW 84.36.385(8). 25
(9) "Income threshold 2" means: 26
(a) For taxes levied for collection in calendar years prior to 27
2020, a combined disposable income equal to $35,000;28
(b) For taxes levied for collection in calendar years 2020 29
through 2023, a combined disposable income equal to the greater of 30
"income threshold 2" for the previous year or 55 percent of the 31
county median household income; ((and))32
(c) For taxes levied for collection in calendar year s 2024 ((and 33
thereafter)) through 2026, a combined disposable income equal to the 34
greater of "income threshold 2" for the previous year or 60 percent 35
of the county median household income ((, adjusted every three years 36
beginning August 1, 2023, as provided in RCW 84.36.385(8))); and37
(d) For taxes levied for collection in calendar years 2027 and 38
thereafter, a combined disposable income equal to the greater of 39
"income threshold 2" for the previous year or 70 percent of the 40
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county median household income, adjusted every three years beginning 1
August 1, 2023, as provided in RCW 84.36.385(8). 2
(10) "Income threshold 3" means: 3
(a) For taxes levied for collection in calendar years prior to 4
2020, a combined disposable income equal to $40,000;5
(b) For taxes levied for collection in calendar years 2020 6
through 2023, a combined disposable income equal to the greater of 7
"income threshold 3" for the previous year or 65 percent of the 8
county median household income; ((and))9
(c) For taxes levied for collection in calendar year s 2024 ((and 10
thereafter)) through 2026, a combined disposable income equal to the 11
greater of "income threshold 3" for the previous year or 70 percent 12
of the county median household income ((, adjusted every three years 13
beginning August 1, 2023, as provided in RCW 84.36.385(8))); and14
(d) For taxes levied for collection in calendar years 2027 and 15
thereafter, a combined disposable income equal to the greater of 16
"income threshold 3" for the previous year or 80 percent of the 17
county median household income, adjusted every three years beginning 18
August 1, 2023, as provided in RCW 84.36.385(8). 19
(11) "Principal place of residence" means a residence occupied 20
for more than six months each calendar year by a person claiming an 21
exemption under RCW 84.36.381. 22
(12) The term "real property" also includes a mobile home which 23
has substantially lost its identity as a mobile unit by virtue of its 24
being fixed in location upon land owned or leased by the owner of the 25
mobile home and placed on a foundation (posts or blocks) with fixed 26
pipe, connections with sewer, water, or other utilities. A mobile 27
home located on land leased by the owner of the mobile home is 28
subject, for tax billing, payment, and collection purposes, only to 29
the personal property provisions of chapter 84.56 RCW and RCW 30
84.60.040. 31
(13) The term "residence" means a single-family dwelling unit 32
whether such unit be separate or part of a multiunit dwelling, may 33
include one accessory dwelling unit and includes the land on which 34
such dwellings stand not to exceed one acre, except that a residence 35
includes any additional property up to a total of five acres that 36
comprises the residential parcel if this larger parcel size is 37
required under land use regulations. The term also includes a share 38
ownership in a cooperative housing association, corporation, or 39
partnership if the person claiming exemption can establish that his 40
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or her share represents the specific unit or portion of such 1
structure in which he or she resides. The term also includes a 2
single-family dwelling situated upon lands the fee of which is vested 3
in the United States or any instrumentality thereof including an 4
Indian tribe or in the state of Washington, and notwithstanding the 5
provisions of RCW 84.04.080 and 84.04.090, such a residence is deemed 6
real property. 7
(14) "Standard deduction amount" means $7,500 for the person 8
claiming the exemption plus an additional $7,500 for the person's 9
spouse or domestic partner.10
Sec. 103. RCW 84.38.020 and 2023 c 147 s 4 are each amended to 11
read as follows: 12
The definitions in this section apply throughout this chapter 13
unless the context clearly requires otherwise. 14
(1)(a) "Claimant" means a person who either elects or is required 15
under RCW 84.64.050 to defer payment of the special assessments 16
and/or real property taxes accrued on the claimant's residence by 17
filing a declaration to defer as provided by this chapter.18
(b) When two or more individuals of a household file or seek to 19
file a declaration to defer, they may determine between them as to 20
who the claimant is. 21
(2) "Devisee" has the same meaning as provided in RCW 21.35.005.22
(3) "Equity value" means the amount by which the fair market 23
value of a residence as determined from the records of the county 24
assessor exceeds the total amount of any liens or other obligations 25
against the property. 26
(4) "Heir" has the same meaning as provided in RCW 21.35.005.27
(5) "Income threshold" means: (a) For taxes levied for collection 28
in calendar years prior to 2020, a combined disposable income equal 29
to $45,000; ((and)) (b) for taxes levied for collection in calendar 30
year 2020 ((and thereafter )) through 2026 , a combined disposable 31
income equal to the greater of the income threshold for the previous 32
year, or 75 percent of the county median household income ; and (c) 33
for taxes levied for collection in calendar year 2027 and thereafter, 34
a combined disposable income equal to the greater of the income 35
threshold for the previous year, or 90 percent of the county median 36
household income , adjusted every three years beginning August 1, 37
2023, as provided in RCW 84.36.385(8). Beginning with the adjustment 38
made by August 1, 2023, as provided in RCW 84.36.385(8), if the 39
p. 9 HB 2621
income threshold in a county is not adjusted based on percentage of 1
county median income as provided in this subsection, then the income 2
threshold must be adjusted based on the growth of the consumer price 3
index for all urban consumers (CPI-U) for the prior ((twelve)) 12-4
month period as published by the United States bureau of labor 5
statistics. In no case may the adjustment be greater than one 6
percent. The adjusted threshold must be rounded to the nearest one 7
dollar. If the income threshold adjustment is negative, the income 8
threshold for the prior year continues to apply. 9
(6) "Local government" means any city, town, county, water-sewer 10
district, public utility district, port district, irrigation 11
district, flood control district, or any other municipal corporation, 12
quasi-municipal corporation, or other political subdivision 13
authorized to levy special assessments. 14
(7) "Real property taxes" means ad valorem property taxes levied 15
on a residence in this state in the preceding calendar year.16
(8) "Residence" has the meaning given in RCW 84.36.383.17
(9) "Special assessment" means the charge or obligation imposed 18
by a local government upon property specially benefited.19
PART II20
REQUIRING PROPERTY TAX STATEMENTS TO LIST THE STATE PROPERTY TAX AS 21
THE STATE SCHOOL LEVY22
Sec. 201. RCW 84.56.020 and 2023 c 376 s 1 are each amended to 23
read as follows: 24
Treasurers' tax collection duties.25
(1) The county treasurer must be the receiver and collector of 26
all taxes extended upon the tax rolls of the county, whether levied 27
for state, county, school, bridge, road, municipal or other purposes, 28
and also of all fines, forfeitures or penalties received by any 29
person or officer for the use of his or her county. No treasurer may 30
accept tax payments or issue receipts for the same until the 31
treasurer has completed the tax roll for the current year's 32
collection and provided notification of the completion of the roll. 33
Notification may be accomplished electronically, by posting a notice 34
in the office, or through other written communication as determined 35
by the treasurer. All real and personal property taxes and 36
assessments made payable by the provisions of this title are due and 37
payable to the county treasurer on or before the 30th day of April 38
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and, except as provided in this section, are delinquent after that 1
date. 2
Tax statements.3
(2)(a) Tax statements for the current year's collection must be 4
distributed to each taxpayer on or before March 15th provided that:5
(i) All city and other taxing district budgets have been 6
submitted to county legislative authorities by November 30th per RCW 7
84.52.020; 8
(ii) The county legislative authority in turn has certified taxes 9
levied to the county assessor in accordance with RCW 84.52.070; and10
(iii) The county assessor has delivered the tax roll to the 11
county treasurer by January 15th per RCW 84.52.080.12
(b) Each tax statement must include a notice that checks for 13
payment of taxes may be made payable to "Treasurer of . . . . . . 14
County" or other appropriate office, but tax statements may not 15
include any suggestion that checks may be made payable to the name of 16
the individual holding the office of treasurer nor any other 17
individual. 18
(c) Each tax statement distributed to an address must include a 19
notice with information describing the: 20
(i) Property tax exemption program pursuant to RCW 84.36.379 21
through 84.36.389; and 22
(ii) Property tax deferral program pursuant to chapter 84.38 RCW.23
(d) Each tax statement must identify the state property tax as 24
the "state school levy."25
Tax payment due dates.26
On-time tax payments: First-half taxes paid by April 30th and 27
second-half taxes paid by October 31st.28
(3)(a) When the total amount of tax or special assessments on 29
personal property or on any lot, block or tract of real property 30
payable by one person is $50 or more, and if one-half of such tax is 31
paid on or before the 30th day of April, the remainder of such tax is 32
due and payable on or before the following 31st day of October and is 33
delinquent after that date. 34
(b) Payments generated by an automated check processing service 35
or payments sent via United States mail with no discernable postmark 36
date and received within three business days of the 30th day of April 37
or the 31st day of October, as required under (a) of this subsection, 38
are not delinquent. 39
p. 11 HB 2621
Delinquent tax payments for current year: First-half taxes paid 1
after April 30th.2
(4)(a) When the total amount of tax or special assessments on any 3
lot, block or tract of real property, personal property, or on any 4
mobile home payable by one person is $50 or more, and if one-half of 5
such tax is paid after the 30th day of April but before the 31st day 6
of October, together with the applicable interest and penalty on the 7
full amount of tax payable for that year, the remainder of such tax 8
is due and payable on or before the following 31st day of October and 9
is delinquent after that date. 10
(b) Payments generated by an automated check processing service 11
or payments sent via United States mail with no discernable postmark 12
date and received within three business days of the 30th day of April 13
or the 31st day of October, as required under (a) of this subsection, 14
are not delinquent. 15
Delinquent tax payments: Interest, penalties, and treasurer 16
duties.17
(5)(a) Except as provided in (c) of this subsection, delinquent 18
taxes under this section are subject to interest as provided in this 19
subsection computed on a monthly basis on the amount of tax 20
delinquent from the date of delinquency until paid. Interest must be 21
calculated at the rate as described below. 22
(i) Until December 31, 2022, the interest rate is 12 percent per 23
annum for all nonresidential real property, residential real 24
property, and personal property. 25
(ii) Beginning January 1, 2023, interest rates are as follows:26
(A) Nine percent per annum for all residential real property with 27
four or fewer units per taxable parcel, including manufactured/mobile 28
homes as defined in RCW 59.20.030 for taxes levied in 2023 or after; 29
or 30
(B) Twelve percent per annum for all other property.31
(b)(i) Penalties on delinquent taxes under this section may not 32
be assessed beginning January 1, 2022, and through December 31, 2022.33
(ii) Beginning January 1, 2023, delinquent taxes under this 34
section are subject to penalties for nonresidential real property, 35
residential real property with greater than four units per taxable 36
parcel, and for personal property as follows: 37
(A) A penalty of three percent of the amount of tax delinquent is 38
assessed on the tax delinquent on June 1st of the year in which the 39
tax is due. 40
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(B) An additional penalty of eight percent is assessed on the 1
delinquent tax amount on December 1st of the year in which the tax is 2
due. 3
(iii) Penalties may not be assessed on residential real property 4
with four or fewer units per taxable parcel, including manufactured/5
mobile homes as defined in RCW 59.20.030. 6
(c)(i) If a taxpayer is successfully participating in a payment 7
agreement under subsection (15)(b) of this section or a partial 8
payment program pursuant to subsection (15)(c) of this section, the 9
county treasurer may not assess additional penalties on delinquent 10
taxes that are included within the payment agreement. Interest and 11
penalties that have been assessed prior to the payment agreement 12
remain due and payable as provided in the payment agreement.13
(ii) The following remain due and payable as provided in any 14
payment agreement: 15
(A) Interest that has been assessed prior to the payment 16
agreement; and 17
(B) Penalties assessed prior to January 1, 2022, that have been 18
assessed prior to the payment agreement. 19
(6) A county treasurer must provide notification to each taxpayer 20
whose taxes have become delinquent under subsections (4) and (5) of 21
this section. The delinquency notice must specify where the taxpayer 22
can obtain information regarding: 23
(a) Any current tax or special assessments due as of the date of 24
the notice; 25
(b) Any delinquent tax or special assessments due, including any 26
penalties and interest, as of the date of the notice; and27
(c) Where the taxpayer can pay his or her property taxes directly 28
and contact information, including but not limited to the phone 29
number, for the statewide foreclosure hotline recommended by the 30
Washington state housing finance commission. 31
(7) Within 90 days after the expiration of two years from the 32
date of delinquency (when a taxpayer's taxes have become delinquent), 33
the county treasurer must provide the name and property address of 34
the delinquent taxpayer to a homeownership resource center or any 35
other designated local or state entity recommended by the Washington 36
state housing finance commission. 37
Collection of foreclosure costs.38
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(8)(a) When real property taxes become delinquent and prior to 1
the filing of the certificate of delinquency, the treasurer is 2
authorized to assess and collect tax foreclosure avoidance costs.3
(b) When tax foreclosure avoidance costs are collected, such 4
costs must be credited to the county treasurer service fund account, 5
except as otherwise directed. 6
(c) For purposes of chapter 84.64 RCW, any taxes, interest, or 7
penalties deemed delinquent under this section remain delinquent 8
until such time as all taxes, interest, and penalties for the tax 9
year in which the taxes were first due and payable have been paid in 10
full. 11
Periods of armed conflict.12
(9) Subsection (5) of this section notwithstanding, no interest 13
or penalties may be assessed during any period of armed conflict 14
regarding delinquent taxes imposed on the personal residences owned 15
by active duty military personnel who are participating as part of 16
one of the branches of the military involved in the conflict and 17
assigned to a duty station outside the territorial boundaries of the 18
United States. 19
State of emergency.20
(10) During a state of emergency declared under RCW 21
43.06.010(12), the county treasurer, on his or her own motion or at 22
the request of any taxpayer affected by the emergency, may grant 23
extensions of the due date of any taxes payable under this section as 24
the treasurer deems proper. 25
Retention of funds from interest.26
(11) All collections of interest on delinquent taxes must be 27
credited to the county current expense fund. 28
(12) For purposes of this chapter, "interest" means both interest 29
and penalties. 30
Retention of funds from property foreclosures and sales.31
(13) The direct cost of foreclosure and sale of real property, 32
and the direct fees and costs of distraint and sale of personal 33
property, for delinquent taxes, must, when collected, be credited to 34
the operation and maintenance fund of the county treasurer 35
prosecuting the foreclosure or distraint or sale; and must be used by 36
the county treasurer as a revolving fund to defray the cost of 37
further foreclosure, distraint, and sale because of delinquent taxes 38
without regard to budget limitations and not subject to indirect 39
costs of other charges. 40
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Tax due dates and options for tax payment collections.1
Electronic billings and payments.2
(14) For purposes of this chapter, and in accordance with this 3
section and RCW 36.29.190, the treasurer may collect taxes, 4
assessments, fees, rates, interest, and charges by electronic billing 5
and payment. Electronic billing and payment may be used as an option 6
by the taxpayer, but the treasurer may not require the use of 7
electronic billing and payment. Electronic bill presentment and 8
payment may be on a monthly or other periodic basis as the treasurer 9
deems proper for: 10
(a) Delinquent tax year payments; and 11
(b) Prepayments of current tax. 12
Tax payments.13
Prepayment for current taxes.14
(15)(a) The treasurer may accept prepayments for current year 15
taxes by any means authorized. All prepayments must be paid in full 16
by the due date specified in subsection (16) of this section.17
Payment agreements for current year taxes.18
(b)(i) The treasurer may provide, by electronic means or 19
otherwise, a payment agreement that provides for payment of current 20
year taxes, inclusive of prepayment collection charges. The payment 21
agreement must be signed by the taxpayer and treasurer or the 22
treasurer's deputy prior to the sending of an electronic or 23
alternative bill, which includes a payment plan for current year 24
taxes. 25
Payment agreements for delinquent year taxes.26
(ii)(A) The treasurer may provide, by electronic means or 27
otherwise, a payment agreement for payment of past due delinquencies. 28
The payment agreement must be signed by the taxpayer and treasurer or 29
the treasurer's deputy prior to the sending of an electronic or 30
alternative bill, which includes a payment plan for past due 31
delinquent taxes and charges. 32
(B) Tax payments received by a treasurer for delinquent year 33
taxes from a taxpayer participating on a payment agreement must be 34
applied first to the oldest delinquent year unless such taxpayer 35
requests otherwise. 36
Partial payments: Acceptance of partial payments for current and 37
delinquent taxes.38
(c)(i) In addition to the payment agreement program in (b) of 39
this subsection, the treasurer may accept partial payment of any 40
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current and delinquent taxes including interest and penalties by any 1
means authorized including electronic bill presentment and payments.2
(ii) All tax payments received by a treasurer for delinquent year 3
taxes from a taxpayer paying a partial payment must be applied first 4
to the oldest delinquent year unless such taxpayer requests 5
otherwise. 6
Payment for delinquent taxes.7
(d) Payments on past due taxes must include collection of the 8
oldest delinquent year, which includes interest, penalties, and taxes 9
within an ((eighteen)) 18-month period, prior to filing a certificate 10
of delinquency under chapter 84.64 RCW or distraint pursuant to RCW 11
84.56.070. 12
Due date for tax payments.13
(16) All taxes upon real and personal property made payable by 14
the provisions of this title are due and payable to the treasurer on 15
or before the 30th day of April and are delinquent after that date. 16
The remainder of the tax is due and payable on or before the 17
following 31st of October and is delinquent after that date. All 18
other assessments, fees, rates, and charges are delinquent after the 19
due date. 20
Electronic funds transfers.21
(17) A county treasurer may authorize payment of:22
(a) Any current property taxes due under this chapter by 23
electronic funds transfers on a monthly or other periodic basis; and24
(b) Any past due property taxes, penalties, and interest under 25
this chapter by electronic funds transfers on a monthly or other 26
periodic basis. Delinquent taxes are subject to interest and 27
penalties, as provided in subsection (5) of this section. All tax 28
payments received by a treasurer from a taxpayer paying delinquent 29
year taxes must be applied first to the oldest delinquent year unless 30
such taxpayer requests otherwise. 31
Payment for administering prepayment collections.32
(18) The treasurer must pay any collection costs, investment 33
earnings, or both on past due payments or prepayments to the credit 34
of a county treasurer service fund account to be created and used 35
only for the payment of expenses incurred by the treasurer, without 36
limitation, in administering the system for collecting prepayments.37
Waiver of interest and penalties for qualified taxpayers subject 38
to foreclosure.39
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(19) No earlier than 60 days prior to the date that is three 1
years after the date of delinquency, the treasurer must waive all 2
outstanding interest and penalties on delinquent taxes due from a 3
taxpayer if the property is subject to an action for foreclosure 4
under chapter 84.64 RCW and the following requirements are met:5
(a) The taxpayer is income-qualified under RCW 84.36.381(5)(a), 6
as verified by the county assessor; 7
(b) The taxpayer occupies the property as their principal place 8
of residence; and 9
(c) The taxpayer has not previously received a waiver on the 10
property as provided under this subsection. 11
Definitions.12
(20) The definitions in this subsection apply throughout this 13
section unless the context clearly requires otherwise.14
(a) "Electronic billing and payment" means statements, invoices, 15
or bills that are created, delivered, and paid using the internet. 16
The term includes an automatic electronic payment from a person's 17
checking account, debit account, or credit card. 18
(b) "Internet" has the same meaning as provided in RCW 19
19.270.010. 20
(c) "Tax foreclosure avoidance costs" means those direct costs 21
associated with the administration of properties subject to and prior 22
to foreclosure. Tax foreclosure avoidance costs include:23
(i) Compensation of employees for the time devoted to 24
administering the avoidance of property foreclosure; and25
(ii) The cost of materials, services, or equipment acquired, 26
consumed, or expended in administering tax foreclosure avoidance 27
prior to the filing of a certificate of delinquency.28
PART III29
CONSOLIDATING THE STATE PROPERTY TAX30
Sec. 301. RCW 84.52.065 and 2022 c 56 s 13 are each amended to 31
read as follows: 32
(1) Except as otherwise provided in this section, subject to the 33
limitations in RCW 84.55.010, in each year the state must levy for 34
collection in the following year for the support of common schools of 35
the state a tax of ((three dollars and sixty cents )) $3.60 per 36
((thousand dollars )) $1,000 of assessed value upon the assessed 37
valuation of all taxable property within the state adjusted to the 38
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state equalized value in accordance with the indicated ratio fixed by 1
the state department ((of revenue)). 2
(2)(a) ((In addition to the tax authorized under subsection (1) 3
of this section, the state must levy an additional property tax for 4
the support of common schools of the state.5
(i) For taxes levied for collection in calendar years 2018 6
through 2021, the rate of tax is the rate necessary to bring the 7
aggregate rate for state property tax levies levied under this 8
subsection and subsection (1) of this section to a combined rate of 9
two dollars and forty cents per thousand dollars of assessed value in 10
calendar year 2019 and two dollars and seventy cents per thousand 11
dollars of assessed value in calendar years 2018, 2020, and 2021. The 12
state property tax levy rates provided in this subsection (2)(a)(i) 13
are based upon the assessed valuation of all taxable property within 14
the state adjusted to the state equalized value in accordance with 15
the indicated ratio fixed by the state department of revenue.16
(ii) For taxes levied for collection in calendar year 2022 and 17
thereafter, the tax authorized under this subsection (2) is subject 18
to the limitations of chapter 84.55 RCW.19
(b)(i) Except as otherwise provided in this subsection, all taxes 20
collected under this subsection (2) must be deposited into the state 21
general fund.22
(ii) For fiscal year 2019, taxes collected under this subsection 23
(2) must be deposited into the education legacy trust account for the 24
support of common schools.25
(3) For taxes levied for collection in calendar years 2019 26
through 2021, the state property taxes levied under subsections (1) 27
and (2) of this section are not subject to the limitations in chapter 28
84.55 RCW.29
(4)(a) For taxes levied for collection in calendar year 2022 and 30
thereafter, the aggregate rate limit for state property taxes levied 31
under subsections (1) and (2) of this section is three dollars and 32
sixty cents per thousand dollars of assessed value upon the assessed 33
valuation of all taxable property within the state adjusted to the 34
state equalized value in accordance with the indicated ratio fixed by 35
the state department of revenue.36
(b) If the aggregate rate of state property taxes levied under 37
subsections (1) and (2) of this section for collection in any 38
calendar year after 2021 exceeds $3.60 per $1,000 of assessed value, 39
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each rate must be reduced on a pro rata basis until the aggregate 1
rate no longer exceeds $3.60 per $1,000 of assessed value.2
(5) For property taxes levied for collection in calendar years 3
2019 through 2021, the rate of tax levied under subsection (1) of 4
this section is the actual rate that was levied for collection in 5
calendar year 2018 under subsection (1) of this section.6
(6))) For taxes levied for collection in calendar year 2027, the 7
state property tax levy rate is $2.06021 per $1,000 of assessed 8
value. The state property tax levy rate provided in this subsection 9
(2)(a) is based upon the assessed valuation of all taxable property 10
within the state adjusted to the state equalized value in accordance 11
with the indicated ratio fixed by the department.12
(b) For taxes levied for collection in calendar year 2028 and 13
thereafter, the limitations of chapter 84.55 RCW apply.14
(3) As used in this section, "the support of common schools" 15
includes the payment of the principal and interest on bonds issued 16
for capital construction projects for the common schools.17
Sec. 302. RCW 84.36.630 and 2017 3rd sp.s. c 13 s 312 are each 18
amended to read as follows: 19
(1) All machinery and equipment owned by a farmer that is 20
personal property is exempt from property taxes levied for any state 21
purpose((, including the additional state property tax imposed under 22
RCW 84.52.065(2),)) if it is used exclusively in growing and 23
producing agricultural products during the calendar year for which 24
the claim for exemption is made. 25
(2) (("Farmer")) For purposes of this section, "farmer" and 26
"agricultural product" have the same meaning as defined in RCW 27
82.04.213. 28
(3) A claim for exemption under this section must be filed with 29
the county assessor together with the statement required under RCW 30
84.40.190, for exemption from taxes payable the following year. The 31
claim must be made solely upon forms as prescribed and furnished by 32
the department ((of revenue)). 33
PART IV34
MISCELLANEOUS35
NEW SECTION. Sec. 401. This act applies to taxes levied for 36
collection in 2027 and thereafter.37
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NEW SECTION. Sec. 402. RCW 82.32.805 and 82.32.808 do not apply 1
to this act.2
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