Veterans w/ disabilities/tax

AN ACT Relating to property tax exemptions for veterans with 1
disabilities; amending RCW 84.36.381, 84.36.379, 35.13.256, 2
52.18.090, 52.26.270, 82.29A.120, 84.36.385, 84.36.387, 84.39.010, 3
84.40.178, and 84.55.050; adding a new section to chapter 84.36 RCW; 4
and creating new sections. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
PART I7
Sec. 101. RCW 84.36.381 and 2023 c 147 s 1 are each amended to 8
read as follows: 9
A person is exempt from any legal obligation to pay all or a 10
portion of the amount of excess and regular real property taxes due 11
and payable in the year following the year in which a claim is filed, 12
and thereafter, in accordance with the following: 13
(1)(a) The property taxes must have been imposed upon a residence 14
which was occupied by the person claiming the exemption as a 15
principal place of residence as of the time of filing. However, any 16
person who sells, transfers, or is displaced from his or her 17
residence may transfer his or her exemption status to a replacement 18
residence, but no claimant may receive an exemption on more than one 19
residence in any year. Moreover, confinement of the person to a 20
S-0078.3
SENATE BILL 5398
State of Washington 69th Legislature 2025 Regular Session
By Senators Conway, Schoesler, Chapman, Dozier, Nobles, and Warnick
Read first time 01/21/25. Referred to Committee on Ways & Means.
p. 1 SB 5398
hospital, nursing home, assisted living facility, adult family home, 1
or home of a relative for the purpose of long-term care does not 2
disqualify the claim of exemption if: 3
(i) The residence is temporarily unoccupied; 4
(ii) The residence is occupied by a spouse or a domestic partner 5
and/or a person financially dependent on the claimant for support; or6
(iii) The residence is rented for the purpose of paying nursing 7
home, hospital, assisted living facility, or adult family home costs.8
(b) For the purpose of this subsection (1), "relative" means any 9
individual related to the claimant by blood, marriage, or adoption;10
(2) The person claiming the exemption must have owned, at the 11
time of filing, in fee, as a life estate, or by contract purchase, 12
the residence on which the property taxes have been imposed or if the 13
person claiming the exemption lives in a cooperative housing 14
association, corporation, or partnership, such person must own a 15
share therein representing the unit or portion of the structure in 16
which he or she resides. For purposes of this subsection, a residence 17
owned by a marital community or state registered domestic partnership 18
or owned by cotenants is deemed to be owned by each spouse or each 19
domestic partner or each cotenant, and any lease for life is deemed a 20
life estate; 21
(3)(a) The person claiming the exemption must be((:22
(i) Sixty-one)) 61 years of age or older on December 31st of the 23
year in which the exemption claim is filed, or must have been, at the 24
time of filing, retired from regular gainful employment by reason of 25
disability((; or26
(ii) A veteran of the armed forces of the United States entitled 27
to and receiving compensation from the United States department of 28
veterans affairs at:29
(A) A combined service-connected evaluation rating of 80 percent 30
or higher; or31
(B) A total disability rating for a service-connected disability 32
without regard to evaluation percent)). 33
(b) However, any surviving spouse or surviving domestic partner 34
of a person who was receiving an exemption at the time of the 35
person's death will qualify if the surviving spouse or surviving 36
domestic partner is 57 years of age or older and otherwise meets the 37
requirements of this section; 38
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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 additional 30
state property tax imposed under RCW 84.52.065(2), and the portion of 31
the regular property taxes authorized pursuant to RCW 84.55.050 and 32
approved by the voters, if the legislative authority of the county or 33
city imposing the additional regular property taxes identified this 34
exemption in the ordinance placing the RCW 84.55.050 measure on the 35
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 or 35 percent of the 40
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valuation of his or her residence, but not to exceed $70,000 of the 1
valuation of his or her residence; or 2
(ii) A person who otherwise qualifies under this section and has 3
a combined disposable income equal to or less than income threshold 1 4
is exempt from all regular property taxes on the greater of $60,000 5
or 60 percent of the valuation of his or her residence;6
(6)(a) For a person who otherwise qualifies under this section 7
and has a combined disposable income equal to or less than income 8
threshold 3, the valuation of the residence is the assessed value of 9
the residence on the later of January 1, 1995, or January 1st of the 10
assessment year the person first qualifies under this section. If the 11
person subsequently fails to qualify under this section only for one 12
year because of high income, this same valuation must be used upon 13
requalification. If the person fails to qualify for more than one 14
year in succession because of high income or fails to qualify for any 15
other reason, the valuation upon requalification is the assessed 16
value on January 1st of the assessment year in which the person 17
requalifies. If the person transfers the exemption under this section 18
to a different residence, the valuation of the different residence is 19
the assessed value of the different residence on January 1st of the 20
assessment year in which the person transfers the exemption.21
(b) In no event may the valuation under this subsection be 22
greater than the true and fair value of the residence on January 1st 23
of the assessment year. 24
(c) This subsection does not apply to subsequent improvements to 25
the property in the year in which the improvements are made. 26
Subsequent improvements to the property must be added to the value 27
otherwise determined under this subsection at their true and fair 28
value in the year in which they are made. 29
NEW SECTION. Sec. 102. A new section is added to chapter 84.36 30
RCW to be codified between RCW 84.36.381 and 84.36.389 to read as 31
follows: 32
A person is exempt from any legal obligation to pay all or a 33
portion of the amount of excess and regular real property taxes due 34
and payable in the year following the year in which a claim is filed, 35
and thereafter, in accordance with the following: 36
(1)(a) The property taxes must have been imposed upon a residence 37
which was occupied by the person claiming the exemption as a 38
principal place of residence as of the time of filing. However, any 39
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person who sells, transfers, or is displaced from his or her 1
residence may transfer his or her exemption status to a replacement 2
residence, but no claimant may receive an exemption on more than one 3
residence in any year. Moreover, confinement of the person to a 4
hospital, nursing home, assisted living facility, adult family home, 5
or home of a relative for the purpose of long-term care does not 6
disqualify the claim of exemption if: 7
(i) The residence is temporarily unoccupied; 8
(ii) The residence is occupied by a spouse or a domestic partner 9
and/or a person financially dependent on the claimant for support; or10
(iii) The residence is rented for the purpose of paying nursing 11
home, hospital, assisted living facility, or adult family home costs.12
(b) For the purpose of this subsection (1), "relative" means any 13
individual related to the claimant by blood, marriage, or adoption.14
(2) The person claiming the exemption must have owned, at the 15
time of filing, in fee, as a life estate, or by contract purchase, 16
the residence on which the property taxes have been imposed or if the 17
person claiming the exemption lives in a cooperative housing 18
association, corporation, or partnership, such person must own a 19
share therein representing the unit or portion of the structure in 20
which he or she resides. For purposes of this subsection, a residence 21
owned by a marital community or state registered domestic partnership 22
or owned by cotenants is deemed to be owned by each spouse or each 23
domestic partner or each cotenant, and any lease for life is deemed a 24
life estate. 25
(3)(a) The person claiming the exemption must be a veteran of the 26
armed forces of the United States entitled to and receiving 27
compensation from the United States department of veterans affairs.28
(b) However, any surviving spouse or surviving domestic partner 29
of a person who was receiving an exemption at the time of the 30
person's death will qualify if the surviving spouse or surviving 31
domestic partner is 57 years of age or older and otherwise meets the 32
requirements of this section. 33
(4)(a) This section provides partial exemptions for any property 34
owned by veterans with disabilities and surviving spouses of deceased 35
veterans with disabilities. The exemption amount that a qualified 36
disabled veteran receives depends on the veteran's disability rating 37
from the United States department of veterans affairs or the branch 38
of the armed services in which the veteran served. A disability 39
rating from 10 percent through 29 percent may receive an exemption of 40
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up to $5,000 from the property's value, 30 percent through 49 percent 1
may receive up to $7,500, 50 percent through 69 percent may receive 2
up to $10,000, and 70 percent through 100 percent may receive up to 3
$12,000. 4
(b) The amount that the person is exempt from an obligation to 5
pay is calculated according to the table in this subsection, based on 6
the veteran's disability rating from the United States department of 7
veterans affairs or the branch of the armed services in which the 8
veteran served. 9
10
11 Disability Rating Exemption Amount Up To
12 10% - 29% $5,000
13 30% - 49% $7,500
14 50% - 69% $10,000
15 70% - 100% $12,000
A disabled veteran awarded 100 percent disability compensation 16
due to a service-connected disability and a rating of 100 percent 17
disabled or individual unemployability from the United States 18
department of veterans affairs may receive an exemption from taxation 19
of the total appraised value of the veteran's residence homestead. If 20
a veteran qualifies for the exemption after January 1st of a tax 21
year, the veteran must receive an exemption for the applicable 22
portion of that year immediately upon qualifying for the exemption. 23
If the property no longer qualifies in a year, the exemption is 24
removed for that portion of the year. 25
(5) The department of revenue must adjust the amounts in 26
subsection (4) of this section for inflation every year beginning 27
January 1, 2026, based upon changes in the consumer price index that 28
are published by November 15th of the previous year for the most 29
recent 12-month period. The amounts must be rounded to the nearest 30
$5. For purposes of this subsection, "consumer price index" means, 31
for any 12-month period, the average consumer price index for that 32
12-month period for the Seattle, Washington area for urban wage 33
earners and clerical workers, all items, compiled by the bureau of 34
labor statistics, United States department of labor.35
(6) A person who qualifies under this section is exempt from 36
excess property taxes, the additional state property tax imposed 37
under RCW 84.52.065(2), and the portion of the regular property taxes 38
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authorized under RCW 84.55.050 and approved by the voters, if the 1
legislative authority of the county or city imposing the additional 2
regular property taxes identified this exemption in the ordinance 3
placing the RCW 84.55.050 measure on the ballot. 4
Sec. 103. RCW 84.36.379 and 2005 c 248 s 1 are each amended to 5
read as follows: 6
The legislature finds that the property tax exemption authorized 7
by Article VII, section 10 of the state Constitution should be made 8
available on the basis of a retired person's ability to pay property 9
taxes and that the best measure of a retired person's ability to pay 10
taxes is that person's disposable income as defined in RCW 84.36.383. 11
((The legislature further finds that veterans with one hundred 12
percent service-connected disabilities have given so much to our 13
country that they deserve property tax relief.))14
NEW SECTION. Sec. 104. The legislature finds that veterans with 15
service-connected disabilities have given so much to our country that 16
they deserve property tax relief.17
PART II18
Conforming Amendments19
Sec. 201. RCW 35.13.256 and 2012 c 47 s 1 are each amended to 20
read as follows: 21
(1) A city or town that has annexed since 2006 or is conducting 22
annexations of all or a part of a fire protection district or fire 23
protection districts may by resolution, for the enhancement of fire 24
protection services, fix and impose a benefit charge on personal 25
property and improvements to real property that are located in the 26
city or town, to be paid by the owners of the properties: PROVIDED, 27
That a benefit charge shall not apply to personal property and 28
improvements to real property owned or used by: (a) Any recognized 29
religious denomination or religious organization as, or including, a 30
sanctuary or for purposes related to the bona fide religious 31
ministries of the denomination or religious organization, including 32
schools and educational facilities used for kindergarten, primary, or 33
secondary educational purposes or for institutions of higher 34
education and all grounds and buildings related thereto, but not 35
including personal property and improvements to real property owned 36
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or used by any recognized religious denomination or religious 1
organization for business operations, profit-making enterprises, or 2
activities not including use of a sanctuary or related to 3
kindergarten, primary, or secondary educational purposes or for 4
institutions of higher education; or (b) any entity exempt from 5
taxation under RCW 35.82.210, 84.36.030(3), or 84.36.560.6
(2) A benefit charge imposed shall be reasonably proportioned to 7
the measurable benefits to property resulting from the enhancement of 8
services afforded by the city or town fire department. It is 9
acceptable to apportion the benefit charge to the values of the 10
properties as found by the county assessor or assessors modified 11
generally in the proportion that fire insurance rates are reduced or 12
entitled to be reduced as the result of providing the services. Any 13
other method that reasonably apportions the benefit charges to the 14
actual benefits resulting from the degree of protection, which may 15
include but is not limited to the distance from regularly maintained 16
fire protection equipment, the level of fire prevention services 17
provided to the properties, or the need of the properties for 18
specialized services, may be specified in the resolution and shall be 19
subject to contest on the ground of unreasonable or capricious action 20
or action in excess of the measurable benefits to the property 21
resulting from services afforded by the city or town fire department. 22
The city or town may determine that certain properties or types or 23
classes of properties are not receiving measurable benefits based on 24
criteria they establish by resolution. A benefit charge authorized by 25
this section shall not be applicable to the personal property or 26
improvements to real property of any individual, corporation, 27
partnership, firm, organization, or association maintaining a fire 28
department and whose fire protection and training system has been 29
accepted by a fire insurance underwriter maintaining a fire 30
protection engineering and inspection service authorized by the state 31
insurance commissioner to do business in this state, but such 32
property may be protected by the city or town under a contractual 33
agreement. For administrative purposes, the benefit charge imposed on 34
any individual property may be compiled into a single charge, 35
provided that the city or town, upon request of the property owner, 36
provide an itemized list of charges for each measurable benefit 37
included in the charge. 38
(3) The resolution establishing benefit charges shall specify, by 39
legal geographical areas or other specific designations, the charge 40
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to apply to each property by location, type, or other designation, or 1
other information that is necessary to the proper computation of the 2
benefit charge to be charged to each property owner subject to the 3
resolution. The county assessor of each county shall determine and 4
identify the personal properties and improvements to real property 5
which are subject to a benefit charge in each city or town and shall 6
furnish and deliver to the county treasurer of that county a listing 7
of the properties with information describing the location, legal 8
description, and address of the person to whom the statement of 9
benefit charges is to be mailed, the name of the owner, and the value 10
of the property and improvements, together with the benefit charge to 11
apply to each. These benefit charges shall be certified to the county 12
treasurer for collection in the same manner that is used for the 13
collection of fire protection assessments for forestlands protected 14
by the department of natural resources under RCW 76.04.610 and the 15
same penalties and provisions for collection shall apply.16
(4) Each city and town shall contract, prior to the imposition of 17
a benefit charge, for the administration and collection of the 18
benefit charge by each county treasurer, who shall deduct a percent, 19
as provided by contract to reimburse the county for expenses incurred 20
by the county assessor and county treasurer in the administration of 21
the resolution and this section. The county treasurer shall make 22
distributions each year, as the charges are collected, in the amount 23
of the benefit charges imposed on behalf of the city or town, less 24
the deduction provided for in the contract. 25
(5) Any benefit charge authorized by this section shall not be 26
effective unless a proposition to impose the benefit charge is 27
approved by a sixty percent majority of the voters of the city or 28
town voting at a general election or at a special election called by 29
the city or town for that purpose, held within the city or town. An 30
election held pursuant to this section shall be held not more than 31
twelve months prior to the date on which the first such charge is to 32
be assessed: PROVIDED, That a benefit charge approved at an election 33
shall not remain in effect for a period of more than six years nor 34
more than the number of years authorized by the voters if fewer than 35
six years unless subsequently reapproved by the voters.36
(6) The ballot shall be submitted so as to enable the voters 37
favoring the authorization of a benefit charge to vote "Yes" and 38
those opposed thereto to vote "No," and the ballot shall be:39
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"Shall . . . . . . . . . . be authorized to impose benefit 1
charges each year for . . . . (insert number of years not to 2
exceed six) years, not to exceed an amount equal to . . . . 3
(insert percentage amount not to exceed sixty) percent of its 4
fire department operating budget? 5
6 YES NO
7 □ □"
(7) A city or town renewing the benefit charge may elect to use 8
the following alternative ballot: 9
"Shall . . . . . . . . . . be authorized to continue voter-10
authorized benefit charges each year for . . . . (insert 11
number of years not to exceed six) years, not to exceed an 12
amount equal to . . . . (insert percentage amount not to 13
exceed sixty) percent of its fire department operating 14
budget? 15
16 YES NO
17 □ □"
(8) Not less than ten days nor more than six months before the 18
election at which the proposition to impose the benefit charge is 19
submitted as provided in this section, the city or town shall hold a 20
public hearing specifically setting forth its proposal to impose 21
benefit charges for the support of its legally authorized activities 22
which will maintain or improve the services afforded in the city or 23
town. A report of the public hearing shall be filed with the county 24
treasurer of each county in which the property is located and be 25
available for public inspection. 26
(9)(a) Prior to November 15th of each year the city or town shall 27
hold a public hearing to review and establish the benefit charges for 28
the subsequent year. 29
(b) All resolutions imposing or changing the benefit charges 30
shall be filed with the county treasurer for each county in which the 31
property is located, together with the record of each public hearing, 32
before November 30th immediately preceding the year in which the 33
benefit charges are to be collected on behalf of the city or town 34
fire department. 35
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(c) After the benefit charges have been established, the owners 1
of the property subject to the charge shall be notified of the amount 2
of the charge. 3
(10) After notice has been given to the property owners of the 4
amount of the charge, the city or town imposing a benefit charge 5
under this section shall form a review board for at least a two-week 6
period and shall, upon complaint in writing of a party aggrieved 7
owning property in the city or town, reduce the charge of a person 8
who, in their opinion, has been charged too large a sum, to a sum or 9
amount as they believe to be the true, fair, and just amount.10
(11) A person who is receiving the exemption contained in RCW 11
84.36.381 through 84.36.389 shall be exempt from any legal obligation 12
to pay a portion of the charge imposed by this section according to 13
the following: 14
(a) A person who meets the income limitation contained in RCW 15
84.36.381(5)(a) and does not meet the income limitation contained in 16
RCW 84.36.381(5)(b) (i) or (ii) shall be exempt from twenty-five 17
percent of the charge. 18
(b) A person who meets the income limitation contained in RCW 19
84.36.381(5)(b)(i) shall be exempt from fifty percent of the charge.20
(c) A person who meets the income limitation contained in RCW 21
84.36.381(5)(b)(ii) or is eligible for the exemption in section 102 22
of this act shall be exempt from seventy-five percent of the charge.23
(12) For the purposes of this section: 24
(a) "Personal property" includes every form of tangible personal 25
property((,)) including, but not limited to, all goods, chattels, 26
stock in trade, estates, or crops, except that the term "personal 27
property" does not include any personal property used for farming, 28
field crops, farm equipment, or livestock; and 29
(b) "Improvements to real property" does not include permanent 30
growing crops, field improvements installed for the purpose of aiding 31
the growth of permanent crops, or other field improvements normally 32
not subject to damage by fire. 33
Sec. 202. RCW 52.18.090 and 1990 c 294 s 10 are each amended to 34
read as follows: 35
A person who is receiving the exemption contained in RCW 36
84.36.381 through 84.36.389 shall be exempt from any legal obligation 37
to pay a portion of the charge imposed by this chapter according to 38
the following. 39
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(1) A person who meets the income limitation contained in RCW 1
84.36.381(5)(a) and does not meet the income limitation contained in 2
RCW 84.36.381(5)(b) (i) or (ii) shall be exempt from twenty-five 3
percent of the charge. 4
(2) A person who meets the income limitation contained in RCW 5
84.36.381(5)(b)(i) shall be exempt from fifty percent of the charge.6
(3) A person who meets the income limitation contained in RCW 7
84.36.381(5)(b)(ii) or is eligible for the exemption under section 8
102 of this act shall be exempt from seventy-five percent of the 9
charge. 10
Sec. 203. RCW 52.26.270 and 2004 c 129 s 33 are each amended to 11
read as follows: 12
A person who is receiving the exemption contained in RCW 13
84.36.381 through 84.36.389 is exempt from any legal obligation to 14
pay a portion of the benefit charge imposed under this chapter as 15
follows: 16
(1) A person who meets the income limitation contained in RCW 17
84.36.381(5)(a) and does not meet the income limitation contained in 18
RCW 84.36.381(5)(b) (i) or (ii) is exempt from twenty-five percent of 19
the charge; 20
(2) A person who meets the income limitation contained in RCW 21
84.36.381(5)(b)(i) is exempt from fifty percent of the charge; and22
(3) A person who meets the income limitation contained in RCW 23
84.36.381(5)(b)(ii) or is eligible for the exemption under section 24
102 of this act shall be exempt from seventy-five percent of the 25
charge. 26
Sec. 204. RCW 82.29A.120 and 2020 c 139 s 37 are each amended to 27
read as follows: 28
(1)(a) After computation of the taxes imposed pursuant to RCW 29
82.29A.030 and 82.29A.040, the following credits are allowed in 30
determining the tax payable: 31
(i) For lessees and sublessees who would qualify for a property 32
tax exemption under RCW 84.36.381 or section 102 of this act if the 33
property were privately owned, the tax otherwise due after this 34
credit must be reduced by a percentage equal to the percentage 35
reduction in property tax that would result from the property tax 36
exemption under RCW 84.36.381 or section 102 of this act; and37
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(ii) A credit of thirty-three percent of the tax otherwise due is 1
allowed with respect to a product lease. 2
(b)(i) For a leasehold interest in real property owned by a state 3
university, a credit is allowed equal to the amount that the tax 4
under this chapter exceeds the property tax that would apply if the 5
real property were privately owned by the taxpayer.6
(ii) The credit under this subsection (1)(b) is available only if 7
the tax parcel that is subject to the leasehold interest has a market 8
value in excess of ten million dollars. If the leasehold interest 9
attaches to two or more parcels, the credit is available if at least 10
one of the tax parcels has a market value in excess of ten million 11
dollars. In either case, the market value must be determined as of 12
January 1st of the year prior to the year for which the credit is 13
claimed. 14
(iii) For purposes of calculating the credit under this 15
subsection (1)(b): 16
(A) If a tax parcel does not have current assessed value in 17
accordance with RCW 84.40.020, a market value appraisal performed by 18
a Washington state-certified general real estate appraiser, as 19
defined in RCW 18.140.010, is sufficient to establish the market 20
value. If the underlying real property that is the subject of the 21
leasehold interest consists of a part of one or more tax parcels, 22
this appraisal must include the market value of the part of the 23
parcel or parcels to which the leasehold interest applies; and24
(B) The property tax that would otherwise apply to the real 25
property that is the subject of the leasehold interest is calculated 26
using the existing consolidated levy rate for the property's tax code 27
area. 28
(iv) The definitions in this subsection apply throughout this 29
subsection (1)(b) unless the context clearly requires otherwise.30
(A) "Market value" means the true and fair value of the property 31
as that term is used in RCW 84.40.030, based on the property's 32
highest and best use and determined by any reasonable means approved 33
by the department. 34
(B) "Real property" has the same meaning as in RCW 84.04.090 and 35
also includes all improvements upon the land the fee of which is 36
still vested in the public owner. 37
(C) "State university" has the same meaning as "state 38
universities" as provided in RCW 28B.10.016. 39
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(v) The credit provided under this subsection (1)(b) may not be 1
claimed for tax reporting periods beginning on or after January 1, 2
2032. 3
(2) No credit under subsection (1)(b) of this section may be 4
claimed or approved on or after January 1, 2032. 5
Sec. 205. RCW 84.36.385 and 2023 c 147 s 3 are each amended to 6
read as follows: 7
(1) A claim for exemption under RCW 84.36.381 or section 102 of 8
this act as now or hereafter amended, may be made and filed at any 9
time during the year for exemption from taxes payable the following 10
year and thereafter and solely upon forms as prescribed and furnished 11
by the department of revenue. However, an exemption from tax under 12
RCW 84.36.381 or section 102 of this act continues for no more than 13
six years unless a renewal application is filed as provided in 14
subsection (3) of this section. 15
(2) A person granted an exemption under RCW 84.36.381 or section 16
102 of this act must inform the county assessor of any change in 17
status affecting the person's entitlement to the exemption on forms 18
prescribed and furnished by the department of revenue.19
(3) Each person exempt from taxes under RCW 84.36.381 or section 20
102 of this act in 1993 and thereafter must file with the county 21
assessor a renewal application not later than December 31st of the 22
year the assessor notifies such person of the requirement to file the 23
renewal application. Renewal applications must be on forms prescribed 24
and furnished by the department of revenue. 25
(4) At least once every six years, the county assessor must 26
notify those persons receiving an exemption from taxes under RCW 27
84.36.381 or section 102 of this act of the requirement to file a 28
renewal application. The county assessor may also require a renewal 29
application following an amendment of the income requirements set 30
forth in RCW 84.36.381 or section 102 of this act.31
(5) If the assessor finds that the applicant does not meet the 32
qualifications as set forth in RCW 84.36.381 or section 102 of this 33
act, as now or hereafter amended, the claim or exemption must be 34
denied but such denial is subject to appeal under the provisions of 35
RCW 84.48.010 and in accordance with the provisions of RCW 84.40.038. 36
If the applicant had received exemption in prior years based on 37
erroneous information, the taxes must be collected subject to 38
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penalties as provided in RCW 84.40.130 for a period of not to exceed 1
five years. 2
(6) The department and each local assessor is hereby directed to 3
publicize the qualifications and manner of making claims under RCW 4
84.36.381 through 84.36.389, through communications media, including 5
such paid advertisements or notices as it deems appropriate. Notice 6
of the qualifications, method of making applications, the penalties 7
for not reporting a change in status, and availability of further 8
information must be included on or with property tax statements and 9
revaluation notices for all residential property including mobile 10
homes, except rental properties. 11
(7) The department must authorize an option for electronic filing 12
of applications and renewal applications for the exemption under RCW 13
84.36.381 or section 102 of this act. 14
(8) Beginning August 1, 2023, and by March 1st every third year 15
thereafter, the department must publish updated income thresholds. 16
The adjusted thresholds must be rounded up to the nearest one 17
thousand dollars. If the income threshold adjustment is negative, the 18
income threshold for the prior year continues to apply. The 19
department must adjust income thresholds for each county to reflect 20
the most recent year available of estimated county median household 21
incomes, including preliminary estimates or projections, as published 22
by the office of financial management. For the purposes of this 23
subsection, "county median household income" has the same meaning as 24
provided in RCW 84.36.383. 25
(9) Beginning with the adjustment made by August 1, 2023, as 26
provided in subsection (8) of this section, and every adjustment 27
thereafter, if an income threshold in a county is not adjusted based 28
on percentage of county median income, then the income threshold must 29
be adjusted based on the growth of the seasonally adjusted consumer 30
price index for all urban consumers (CPI-U) for the prior twelve 31
month period as published by the United States bureau of labor 32
statistics. In no case may the adjustment be greater than one 33
percent. The adjusted thresholds must be rounded to the nearest one 34
dollar. If the income threshold adjustment is negative, the income 35
threshold for the prior year continues to apply. 36
Sec. 206. RCW 84.36.387 and 2020 c 209 s 1 are each amended to 37
read as follows: 38
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(1) Except as provided in subsection (3) of this section, all 1
claims for exemption shall be made and signed under oath by the 2
person entitled to the exemption, by his or her attorney-in-fact or 3
in the event the residence of such person is under mortgage or 4
purchase contract requiring accumulation of reserves out of which the 5
holder of the mortgage or contract is required to pay real estate 6
taxes, by such holder or by the owner: PROVIDED, That if a claim for 7
exemption is made by a person living in a cooperative housing 8
association, corporation, or partnership, such claim shall be made 9
and signed by the person entitled to the exemption and by the 10
authorized agent of such cooperative. 11
(2) If the taxpayer is unable to submit his or her own claim, the 12
claim shall be submitted by a duly authorized agent or by a guardian 13
or other person charged with the care of the person or property of 14
such taxpayer. 15
(3) All claims for exemption and renewal applications shall be 16
accompanied by such documented verification of income as shall be 17
prescribed by rule adopted by the department of revenue.18
(4) Any person signing a false claim with the intent to defraud 19
or evade the payment of any tax is guilty of perjury under chapter 20
9A.72 RCW. 21
(5) The tax liability of a cooperative housing association, 22
corporation, or partnership shall be reduced by the amount of tax 23
exemption to which a claimant residing therein is entitled and such 24
cooperative shall reduce any amount owed by the claimant to the 25
cooperative by such exact amount of tax exemption or, if no amount be 26
owed, the cooperative shall make payment to the claimant of such 27
exact amount of exemption. 28
(6) A remainderman or other person who would have otherwise paid 29
the tax on real property that is the subject of an exemption granted 30
under RCW 84.36.381 or section 102 of this act for an estate for life 31
shall reduce the amount which would have been payable by the life 32
tenant to the remainderman or other person to the extent of the 33
exemption. If no amount is owed or separately stated as an obligation 34
between these persons, the remainderman or other person shall make 35
payment to the life tenant in the exact amount of the exemption.36
Sec. 207. RCW 84.39.010 and 2024 c 334 s 1 are each amended to 37
read as follows: 38
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A person is entitled to a property tax exemption in the form of a 1
grant as provided in this chapter. The person is entitled to 2
assistance for the payment of all or a portion of the amount of 3
excess and regular real property taxes imposed on the person's 4
residence in the year in which a claim is filed in accordance with 5
the following: 6
(1) The claimant must meet all requirements for an exemption for 7
the residence under ((RCW 84.36.381)) section 102 of this act.8
(2)(a) The person making the claim must be: 9
(i) 62 years of age or older on December 31st of the year in 10
which the claim is filed, or must have been, at the time of filing, 11
retired from regular gainful employment by reason of disability; and12
(ii) A widow or widower of a veteran who: 13
(A) Died as a result of a service-connected disability;14
(B) Was rated as 100 percent disabled by the United States 15
veterans' administration for the 10 years prior to his or her death;16
(C) Was a former prisoner of war as substantiated by the United 17
States veterans' administration and was rated as 100 percent disabled 18
by the United States veterans' administration for one or more years 19
prior to his or her death; or 20
(D) Died on active duty or in active training status as a member 21
of the United States uniformed services, reserves, or national guard; 22
and 23
(b) The person making the claim must not have remarried.24
(3) ((The claimant must have a combined disposable income of 25
equal to or less than income threshold 3.26
(4))) The claimant must have owned, at the time of filing, the 27
residence on which the real property taxes have been imposed. For 28
purposes of this subsection, a residence owned by cotenants is deemed 29
to be owned by each cotenant. A claimant who has only a share 30
ownership in cooperative housing, a life estate, a lease for life, or 31
a revocable trust does not satisfy the ownership requirement.32
(((5))) (4) A person who otherwise qualifies under this section 33
is entitled to assistance in an amount equal to regular and excess 34
property taxes imposed on the difference between the value of the 35
residence eligible for exemption under ((RCW 84.36.381(5))) section 36
102 of this act and((:37
(a) The)) the first $200,000 of assessed value of the residence 38
((for a person who has a combined disposable income of equal to or 39
less than income threshold 1;40
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(b) The first $150,000 of assessed value of the residence for a 1
person who has a combined disposable income equal to or less than 2
income threshold 2 but greater than income threshold 1; or3
(c) The first $100,000 of assessed value of the residence for a 4
person who has a combined disposable income equal to or less than 5
income threshold 3 but greater than income threshold 2)).6
(((6))) (5) As used in this section: 7
(a) "Veteran" has the same meaning as provided under RCW 8
41.04.005. 9
(b) The meanings attributed in RCW 84.36.383 to the terms 10
"residence((," "combined disposable income," "disposable income, ))" 11
and "disability((," "income threshold 1," "income threshold 2," and 12
"income threshold 3))" apply throughout this section.13
Sec. 208. RCW 84.40.178 and 1995 1st sp.s. c 8 s 3 are each 14
amended to read as follows: 15
The assessor shall maintain an assessed valuation in accordance 16
with the approved revaluation cycle for a residence owned by a person 17
qualifying for exemption under RCW 84.36.381 or section 102 of this 18
act in addition to the valuation required under RCW 84.36.381(6). 19
Upon a change in the true and fair value of the residence, the 20
assessor shall notify the person qualifying for exemption under RCW 21
84.36.381 or section 102 of this act of the new true and fair value 22
and that the new true and fair value will be used to compute property 23
taxes if the property fails to qualify for exemption under RCW 24
84.36.381 or section 102 of this act. 25
Sec. 209. RCW 84.55.050 and 2024 c 114 s 1 are each amended to 26
read as follows: 27
(1) Subject to any otherwise applicable statutory dollar rate 28
limitations, regular property taxes may be levied by or for a taxing 29
district in an amount exceeding the limitations provided for in this 30
chapter if such levy is authorized by a proposition approved by a 31
majority of the voters of the taxing district voting on the 32
proposition at a general election held within the district or at a 33
special election within the taxing district called by the district 34
for the purpose of submitting such proposition to the voters. Any 35
election held pursuant to this section shall be held not more than 12 36
months prior to the date on which the proposed levy is to be made, 37
except as provided in subsection (2) of this section. The ballot of 38
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the proposition shall state the dollar rate proposed and shall 1
clearly state the conditions, if any, which are applicable under 2
subsection (4) of this section. 3
(2) Subject to statutory dollar limitations, a proposition placed 4
before the voters under this section may authorize annual increases 5
in levies for multiple consecutive years, up to six consecutive 6
years, during which period each year's authorized maximum legal levy 7
shall be used as the base upon which an increased levy limit for the 8
succeeding year is computed, but the ballot proposition must state 9
the dollar rate proposed only for the first year of the consecutive 10
years and must state the limit factor, or a specified index to be 11
used for determining a limit factor, such as the consumer price 12
index, which need not be the same for all years, by which the regular 13
tax levy for the district may be increased in each of the subsequent 14
consecutive years. Elections for this purpose must be held at a 15
primary or general election. The title of each ballot measure must 16
state the limited purposes for which the proposed annual increases 17
during the specified period of up to six consecutive years shall be 18
used. 19
(3) After a levy authorized pursuant to this section is made, the 20
dollar amount of such levy may not be used for the purpose of 21
computing the limitations for subsequent levies provided for in this 22
chapter, unless the ballot proposition expressly states that the levy 23
made under this section will be used for this purpose.24
(4) If expressly stated, a proposition placed before the voters 25
under subsection (1) or (2) of this section may: 26
(a) Use the dollar amount of a levy under subsection (1) of this 27
section, or the dollar amount of the final levy under subsection (2) 28
of this section, for the purpose of computing the limitations for 29
subsequent levies provided for in this chapter; 30
(b) Limit the period for which the increased levy is to be made 31
under (a) of this subsection; 32
(c) Limit the purpose for which the increased levy is to be made 33
under (a) of this subsection, but if the limited purpose includes 34
making redemption payments on bonds; 35
(i) For the county in which the state capitol is located, the 36
period for which the increased levies are made may not exceed 25 37
years; and 38
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(ii) For districts other than a district under (c)(i) of this 1
subsection, the period for which the increased levies are made may 2
not exceed nine years; 3
(d) Set the levy or levies at a rate less than the maximum rate 4
allowed for the district; 5
(e) Provide that the exemption authorized by RCW 84.36.381 or 6
section 102 of this act will apply to the levy of any additional 7
regular property taxes authorized by voters; or 8
(f) Include any combination of the conditions in this subsection.9
(5) Except as otherwise expressly stated in an approved ballot 10
measure under this section, subsequent levies shall be computed as 11
if: 12
(a) The proposition under this section had not been approved; and13
(b) The taxing district had made levies at the maximum rates 14
which would otherwise have been allowed under this chapter during the 15
years levies were made under the proposition. 16
NEW SECTION. Sec. 210. RCW 82.32.805 and 82.32.808 do not apply 17
to this act.18
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