Historic preserv. prop. tax

AN ACT Relating to expanding the eligibility for historic 1
preservation property tax special valuation; amending RCW 84.26.070; 2
and amending 2020 c 91 s 3 (uncodified). 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 84.26.070 and 2020 c 91 s 1 are each amended to read 5
as follows: 6
(1) The county assessor shall, for ((ten)) 10 consecutive 7
assessment years following the calendar year in which application is 8
made, place a special valuation on property classified as eligible 9
historic property. 10
(2) The entitlement of property to the special valuation 11
provisions of this section shall be determined as of January 1 st. If 12
property becomes disqualified for the special valuation for any 13
reason, the property shall receive the special valuation for that 14
part of any year during which it remained qualified or the owner was 15
acting in the good faith belief that the property was qualified.16
(3) At the conclusion of special valuation, the cost shall be 17
considered as new construction. 18
(4)(a) A property is eligible for two seven-year extensions of 19
the special valuation if: 20
H-2604.1
HOUSE BILL 2697
State of Washington 69th Legislature 2026 Regular Session
By Representatives Hall, Dye, Nance, Ybarra, Reeves, Barnard, and
Parshley
Read first time 01/28/26. Referred to Committee on Finance.
p. 1 HB 2697
(i) The property is located in a ((county that is listed as a 1
distressed area as reported by the state employment security 2
department and the)) city that is under ((twenty thousand)) 20,000 in 3
population; and 4
(ii) The property continues to meet the criteria provided in RCW 5
84.26.030. 6
(b) Extensions must be applied for by the owner, upon forms 7
prescribed by the department of revenue and supplied by the county 8
assessor, at least ((ninety)) 90 days prior to the expiration of the 9
special valuation. 10
(c) All extensions must be reviewed by the local review board and 11
may be approved or denied at the local review board's discretion.12
(d) No extension may be provided under this subsection on or 13
after January 1, 2057. 14
Sec. 2. 2020 c 91 s 3 (uncodified) is amended to read as 15
follows: 16
(1) This section is the tax preference performance statement for 17
the tax preference contained in sections 1 and 2, chapter 91, Laws of 18
2020 and section 1, chapter . . ., Laws of 2026 (section 1 of this 19
act). This performance statement is only intended to be used for 20
subsequent evaluation of the tax preference. It is not intended to 21
create a private right of action by any party or to be used to 22
determine eligibility for preferential tax treatment.23
(2) The legislature categorizes this tax preference as one 24
intended to provide tax relief for certain businesses or individuals 25
as provided in RCW 82.32.808(2)(e). 26
(3) It is the legislature's specific public policy objective to 27
promote the revitalization of historic properties.28
(4) If the review finds that the number of taxpayers claiming 29
this preference increases, then the legislature intends to extend the 30
expiration date of this tax preference. 31
(5) In order to obtain the data necessary to perform the review 32
in subsection (4) of this section, the joint legislative audit and 33
review committee may refer to any data collected by the state.34
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p. 2 HB 2697