Spousal survivors/prop. tax.

AN ACT Relating to creating a property tax exemption for 1
surviving spouses or domestic partners of state and local officers 2
and firefighters who have died from duty-related injury or disease; 3
amending RCW 84.36.385, 84.36.387, and 84.36.389; adding a new 4
section to chapter 84.36 RCW; and creating new sections.5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. A new section is added to chapter 84.36 7
RCW to read as follows: 8
(1) A spousal survivor's residence is exempt from all or a 9
portion of excess and regular real property taxes due and payable in 10
the year following the year in which a claim is filed, and 11
thereafter, in accordance with the provisions of this section.12
(2) The property taxes must have been imposed upon a residence 13
that was occupied by the person claiming the exemption as a principal 14
place of residence as of the time of filing. However, any person who 15
sells, transfers, or is displaced from the person's residence may 16
transfer such person's exemption status to a replacement residence, 17
but no claimant may receive an exemption on more than one residence 18
in any year. Moreover, confinement of the person to a hospital, 19
nursing home, assisted living facility, or adult family home does not 20
disqualify the claim of exemption if: 21
H-2733.4
HOUSE BILL 2638
State of Washington 69th Legislature 2026 Regular Session
By Representatives Paul, Davis, Shavers, Rule, Leavitt, Parshley,
Nance, and Fosse
Read first time 01/22/26. Referred to Committee on Finance.
p. 1 HB 2638
(a) The residence is temporarily unoccupied; 1
(b) The residence is occupied by a spouse or a domestic partner 2
and/or a person financially dependent on the claimant for support; or3
(c) The residence is rented for the purpose of paying nursing 4
home, hospital, assisted living facility, or adult family home costs.5
(3) The person claiming the exemption under this section must 6
have owned, at the time of filing, in fee, as a life estate, or by 7
contract purchase, the residence on which the property taxes have 8
been imposed or if the person claiming the exemption lives in a 9
cooperative housing association, corporation, or partnership, the 10
person must own a share therein representing the unit or portion of 11
the structure in which the person resides. For purposes of this 12
subsection, a residence owned by a marital community or state 13
registered domestic partnership or owned by cotenants is deemed to be 14
owned by each spouse or each domestic partner or each cotenant, and 15
any lease for life is deemed a life estate. 16
(4)(a) The amount that the person is exempt from an obligation to 17
pay is calculated on the basis of combined disposable income, as 18
defined in RCW 84.36.383. 19
(b) If the person claiming the exemption was retired for two 20
months or more of the assessment year, the combined disposable income 21
of such person must be calculated by multiplying the average monthly 22
combined disposable income of such person during the months such 23
person was retired by 12. 24
(c) If the income of the person claiming exemption is reduced for 25
two or more months of the assessment year due to substantial changes 26
that occur in disposable income that are likely to continue for an 27
indefinite period of time, the combined disposable income of such 28
person must be calculated by multiplying the average monthly combined 29
disposable income of such person after such occurrences by 12.30
(d) If the income of the person claiming the exemption increases 31
as a result of a cost-of-living adjustment to social security 32
benefits or supplemental security income in an amount that would 33
disqualify the applicant from eligibility, the applicant is not 34
disqualified but instead maintains eligibility. 35
(e) If it is necessary to estimate income to comply with this 36
subsection (4), the assessor may require confirming documentation of 37
such income prior to May 31st of the year following application.38
(5)(a) 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 3 is exempt from all excess property taxes, the additional 1
state property tax imposed under RCW 84.52.065(2), and the portion of 2
the regular property tax authorized pursuant to RCW 84.55.050 and 3
approved by the voters, if the legislative authority of the county or 4
city imposing the additional regular property tax identified this 5
exemption in the ordinance placing the RCW 84.55.050 measure on the 6
ballot. 7
(b)(i) A person who otherwise qualifies under this section and 8
has a combined disposable income equal to or less than income 9
threshold 2 but greater than income threshold 1 is exempt from all 10
regular property taxes on the greater of $50,000 or 35 percent of the 11
valuation of their residence, but not to exceed $70,000 of the 12
valuation of their residence. 13
(ii) A person who otherwise qualifies under this section and has 14
a combined disposable income equal to or less than income threshold 1 15
is exempt from all regular property taxes on the greater of $60,000 16
or 60 percent of the valuation of their residence.17
(6)(a) For a person who otherwise qualifies under this section 18
and has a combined disposable income equal to or less than income 19
threshold 3, the valuation of the residence is the assessed value of 20
the residence on January 1st of the assessment year the person first 21
qualifies under this section. If the person subsequently fails to 22
qualify under this section only for one year because of high income, 23
this same valuation must be used upon requalification. If the person 24
fails to qualify for more than one year in succession because of high 25
income or fails to qualify for any other reason, the valuation upon 26
requalification is the assessed value on January 1st of the 27
assessment year in which the person requalifies. If the person 28
transfers the exemption under this section to a different residence, 29
the valuation of the different residence is the assessed value of the 30
different residence on January 1st of the assessment year in which 31
the person transfers the exemption. 32
(b) In no event may the valuation under this subsection be 33
greater than the true and fair value of the residence on January 1st 34
of the assessment year. 35
(c) This subsection does not apply to subsequent improvements to 36
the property in the year in which the improvements are made. 37
Subsequent improvements to the property must be added to the value 38
otherwise determined under this subsection at their true and fair 39
value in the year in which they are made. 40
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(7) The definitions in this subsection apply throughout this 1
section unless the context clearly requires otherwise.2
(a) "Cotenant" has the same meaning as provided in RCW 84.36.383.3
(b) "Real property" has the same meaning as provided in RCW 4
84.36.383. 5
(c) "Residence" has the same meaning as provided in RCW 6
84.36.383. 7
(d) "Spousal survivor" means: 8
(i) A surviving spouse or domestic partner of a correctional 9
officer or community corrections officer employed with the department 10
of corrections or a correctional or security officer employed with a 11
jail as defined in RCW 70.48.020 or a correctional facility created 12
under RCW 70.48.095, who has died as a result of a workplace injury 13
or occupational disease; or 14
(ii) A spousal or domestic partner recipient of a duty-related 15
death benefit from the: 16
(A) Washington state law enforcement officers' and firefighters' 17
retirement system, pursuant to RCW 41.26.048; 18
(B) Volunteer firefighters' and reserve officers' relief and 19
pensions system, pursuant to RCW 41.24.160; or 20
(C) Washington state patrol, pursuant to RCW 43.43.285.21
Sec. 2. RCW 84.36.385 and 2023 c 147 s 3 are each amended to 22
read as follows: 23
(1) A claim for exemption under RCW 84.36.381 or section 1 of 24
this act as now or hereafter amended, may be made and filed at any 25
time during the year for exemption from taxes payable the following 26
year and thereafter and solely upon forms as prescribed and furnished 27
by the department of revenue. However, an exemption from tax under 28
RCW 84.36.381 continues for no more than six years unless a renewal 29
application is filed as provided in subsection (3) of this section.30
(2) A person granted an exemption under RCW 84.36.381 or section 31
1 of this act must inform the county assessor of any change in status 32
affecting the person's entitlement to the exemption on forms 33
prescribed and furnished by the department of revenue.34
(3) Each person exempt from taxes under RCW 84.36.381 in 1993 and 35
thereafter must file with the county assessor a renewal application 36
not later than December 31st of the year the assessor notifies such 37
person of the requirement to file the renewal application. Renewal 38
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applications must be on forms prescribed and furnished by the 1
department of revenue. 2
(4) At least once every six years, the county assessor must 3
notify those persons receiving an exemption from taxes under RCW 4
84.36.381 of the requirement to file a renewal application. The 5
county assessor may also require a renewal application following an 6
amendment of the income requirements set forth in RCW 84.36.381.7
(5) If the assessor finds that the applicant does not meet the 8
qualifications as set forth in RCW 84.36.381 or section 1 of this 9
act, as now or hereafter amended, the claim or exemption must be 10
denied but such denial is subject to appeal under the provisions of 11
RCW 84.48.010 and in accordance with the provisions of RCW 84.40.038. 12
If the applicant had received exemption in prior years based on 13
erroneous information, the taxes must be collected subject to 14
penalties as provided in RCW 84.40.130 for a period of not to exceed 15
five years. 16
(6) The department and each local assessor is hereby directed to 17
publicize the qualifications and manner of making claims under RCW 18
84.36.381 through 84.36.389 and section 1 of this act , through 19
communications media, including such paid advertisements or notices 20
as it deems appropriate. Notice of the qualifications, method of 21
making applications, the penalties for not reporting a change in 22
status, and availability of further information must be included on 23
or with property tax statements and revaluation notices for all 24
residential property including mobile homes, except rental 25
properties. 26
(7) The department must authorize an option for electronic filing 27
of applications and renewal applications for the exemption under RCW 28
84.36.381 and section 1 of this act. 29
(8) Beginning August 1, 2023, and by March 1st every third year 30
thereafter, the department must publish updated income thresholds. 31
The adjusted thresholds must be rounded up to the nearest one 32
thousand dollars. If the income threshold adjustment is negative, the 33
income threshold for the prior year continues to apply. The 34
department must adjust income thresholds for each county to reflect 35
the most recent year available of estimated county median household 36
incomes, including preliminary estimates or projections, as published 37
by the office of financial management. For the purposes of this 38
subsection, "county median household income" has the same meaning as 39
provided in RCW 84.36.383. 40
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(9) Beginning with the adjustment made by August 1, 2023, as 1
provided in subsection (8) of this section, and every adjustment 2
thereafter, if an income threshold in a county is not adjusted based 3
on percentage of county median income, then the income threshold must 4
be adjusted based on the growth of the seasonally adjusted consumer 5
price index for all urban consumers (CPI-U) for the prior twelve 6
month period as published by the United States bureau of labor 7
statistics. In no case may the adjustment be greater than one 8
percent. The adjusted thresholds must be rounded to the nearest one 9
dollar. If the income threshold adjustment is negative, the income 10
threshold for the prior year continues to apply. 11
Sec. 3. RCW 84.36.387 and 2020 c 209 s 1 are each amended to 12
read as follows: 13
(1) Except as provided in subsection (3) of this section, all 14
claims for exemption shall be made and signed under oath by the 15
person entitled to the exemption, by his or her attorney-in-fact or 16
in the event the residence of such person is under mortgage or 17
purchase contract requiring accumulation of reserves out of which the 18
holder of the mortgage or contract is required to pay real estate 19
taxes, by such holder or by the owner: PROVIDED, That if a claim for 20
exemption is made by a person living in a cooperative housing 21
association, corporation, or partnership, such claim shall be made 22
and signed by the person entitled to the exemption and by the 23
authorized agent of such cooperative. 24
(2) If the taxpayer is unable to submit his or her own claim, the 25
claim shall be submitted by a duly authorized agent or by a guardian 26
or other person charged with the care of the person or property of 27
such taxpayer. 28
(3) All claims for exemption and renewal applications shall be 29
accompanied by such documented verification of income as shall be 30
prescribed by rule adopted by the department of revenue.31
(4) Any person signing a false claim with the intent to defraud 32
or evade the payment of any tax is guilty of perjury under chapter 33
9A.72 RCW. 34
(5) The tax liability of a cooperative housing association, 35
corporation, or partnership shall be reduced by the amount of tax 36
exemption to which a claimant residing therein is entitled and such 37
cooperative shall reduce any amount owed by the claimant to the 38
cooperative by such exact amount of tax exemption or, if no amount be 39
p. 6 HB 2638
owed, the cooperative shall make payment to the claimant of such 1
exact amount of exemption. 2
(6) A remainderman or other person who would have otherwise paid 3
the tax on real property that is the subject of an exemption granted 4
under RCW 84.36.381 or section 1 of this act for an estate for life 5
shall reduce the amount which would have been payable by the life 6
tenant to the remainderman or other person to the extent of the 7
exemption. If no amount is owed or separately stated as an obligation 8
between these persons, the remainderman or other person shall make 9
payment to the life tenant in the exact amount of the exemption.10
Sec. 4. RCW 84.36.389 and 1979 ex.s. c 214 s 4 are each amended 11
to read as follows: 12
(1) The director of the department of revenue shall adopt such 13
rules and regulations and prescribe such forms as may be necessary 14
and appropriate for implementation and administration of this chapter 15
subject to chapter 34.05 RCW, the administrative procedure act.16
(2) The department may conduct such audits of the administration 17
of RCW 84.36.381 through 84.36.389 and section 1 of this act and the 18
claims for exemption filed thereunder as it considers necessary. The 19
powers of the department under chapter 84.08 RCW apply to these 20
audits. 21
(3) Any information or facts concerning confidential income data 22
obtained by the assessor or the department, or their agents or 23
employees, under subsection (2) of this section shall be used only to 24
administer RCW 84.36.381 through 84.36.389 and section 1 of this act . 25
Notwithstanding any provision of law to the contrary, absent written 26
consent by the person about whom the information or facts have been 27
obtained, the confidential income data shall not be disclosed by the 28
assessor or the assessor's agents or employees to anyone other than 29
the department or the department's agents or employees nor by the 30
department or the department's agents or employees to anyone other 31
than the assessor or the assessor's agents or employees except in a 32
judicial proceeding pertaining to the taxpayer's entitlement to the 33
tax exemption under RCW 84.36.381 through 84.36.389 and section 1 of 34
this act. Any violation of this subsection is a misdemeanor.35
NEW SECTION. Sec. 5. Section 1 of this act applies to taxes 36
levied for collection in 2027 and thereafter.37
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NEW SECTION. Sec. 6. RCW 82.32.805 and 82.32.808 do not apply 1
to this act.2
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