Primary residence/tax

AN ACT Relating to providing housing safety, security, and 1
protection by creating the primary residence property tax exemption; 2
amending RCW 84.48.010; adding new sections to chapter 84.36 RCW; 3
creating new sections; and providing a contingent effective date.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that housing 6
security is important to all Washingtonians.7
(2) The legislature further finds that homeownership is the main 8
mechanism for creating wealth for the middle class and working 9
families and passing it on generationally. 10
(3) The legislature further finds that one's home is not simply 11
an asset to build wealth, but also a critical tool for maintaining 12
one's security and well-being, and Washington's tax code makes no 13
distinction between one's home and other real property subject to 14
property taxation, contributing to loss of property and displacement, 15
particularly for those on fixed incomes. 16
(4) The legislature further finds that many Washingtonians are 17
vulnerable to foreclosure by mortgage holders and other secured 18
creditors, despite the homestead exemption limited in bankruptcy 19
statute, RCW 6.13.030, which is a tool to protect heads of households 20
S-0805.5
SENATE BILL 5770
State of Washington 69th Legislature 2025 Regular Session
By Senators Robinson, Cleveland, Conway, Cortes, Dhingra, Frame,
Hasegawa, Kauffman, Krishnadasan, Liias, Nobles, Pedersen, Riccelli,
Saldaña, Slatter, Stanford, Trudeau, Valdez, and C. Wilson
Read first time 02/21/25. Referred to Committee on Ways & Means.
p. 1 SB 5770
from having their homes confiscated and sold to satisfy debts from 1
unsecured creditors. 2
(5) Therefore, it is the intent of the legislature to prevent 3
more displacement and loss of real property by exempting a portion of 4
tax of one's principal place of residence to achieve the goal of 5
making sure individuals can reside, raise their families, age in 6
place, and stay in their communities, without fear of displacement 7
due to crises or increase in land and home value assessment. The 8
legislature intends to create a means of providing equity in the tax 9
code by treating one's primary home, including community land trusts 10
and cooperative ownership, differently than other property across 11
Washington. 12
NEW SECTION. Sec. 2. A new section is added to chapter 84.36 13
RCW to read as follows: 14
(1)(a) Subject to the conditions in this section, a portion of 15
the assessed value of a residence is exempt from the state levy but 16
not from property taxes levied by any local taxing district. Subject 17
to the adjustments and limitations in this subsection (1), and for 18
taxes levied for collection in 2028 and thereafter, the primary 19
residence property tax exemption from the state levy is equal to the 20
greater of $100,000 assessed valuation or 60 percent of the county 21
median residential assessed value for the most recent year the 22
department collected data by county. 23
(b)(i) The department shall annually publish the county median 24
residential assessed value rounded to the nearest $1,000 by August 25
1st for the most recent year for which the department collected data 26
by county; and 27
(ii) The department shall adjust the percentage of county median 28
residential assessed value exempted under (a) of this subsection if 29
the state levy is expected to exceed the statutory maximum provided 30
in RCW 84.52.065 to prevent a loss in funding for that year.31
(c) The amount of the primary residence property tax exemption 32
for a residence may not result in a tax reduction that exceeds the 33
amount of state property taxes that would otherwise be levied on that 34
residence. 35
(2) The primary residence property tax exemption is in addition 36
to, and applied after, the exemption provided in RCW 84.36.379 37
through 84.36.389. 38
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(3)(a)(i) The primary residence property tax exemption must be 1
claimed by filing an application with the department by April 1st of 2
the calendar year prior to the first year for which the exemption 3
will be received. The application shall be in a form and manner 4
determined by the department. 5
(ii) A claimant filing an application with the department for a 6
primary residence property tax exemption must include the claimant's 7
address, social security number, parcel number, and any other 8
information the department deems necessary as part of the 9
application. 10
(b) The department shall provide the means for claimants to claim 11
the primary residence property tax exemption for their residence 12
online as prescribed by the department. 13
(c) By August 1st each year, the department shall provide each 14
county assessor a list of all claimants filing an application in the 15
current calendar year. 16
(d) As resources allow, the department shall work with assessors 17
to verify claimants have applied for an exemption for only one 18
residence. As resources allow, the department must notify claimants 19
who appear to have applied for more than one residence or when the 20
department is unable to confirm that the claimant applied for an 21
exemption for only one residence. Such notification may be provided 22
electronically and include a request for additional information 23
needed to confirm that the claimant has applied for only one 24
residence. The verification process under this subsection (3)(d) is 25
not a prerequisite for approval of an application for the primary 26
residence property tax exemption. The department is not required to 27
verify every application. 28
(e) By August 1st each year, the department shall provide each 29
county assessor a list of all claimants where the department has 30
determined that a claimant may have applied for an exemption for more 31
than one residence. 32
(f) A claimant or the claimant's designated agent or legal 33
representative must sign the application attesting that the property 34
for which the primary residence property tax exemption is sought is 35
the claimant's principal place of residence within the meaning of 36
subsection (6) of this section and to the truth of other information 37
in the application. The signature requirements of this subsection 38
(3)(f) may be met by an electronic signature. All signatures on an 39
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application must be made under penalty of perjury as provided in 1
chapter 9A.72 RCW. 2
(g)(i) A primary residence property tax exemption continues until 3
the property is sold, transferred, or the claimant no longer 4
qualifies due to change of use as a principal place of residence. A 5
claimant granted a primary residence property tax exemption must 6
immediately inform the department of any change in status affecting 7
the claimant's entitlement to a primary residence property tax 8
exemption. 9
(ii) If a homeowner sells or otherwise transfers the property, 10
the new property owner must apply for the exemption, as required 11
under this section. 12
(h) An individual may not claim a primary residence property tax 13
exemption on behalf of a deceased individual. 14
(i) The department and the county assessor must protect the 15
privacy and confidentiality of personal data under this subsection 16
(3). 17
(4) If the claimant resides in a cooperative housing association, 18
corporation, or partnership, the application must also be signed by 19
the authorized agent of such cooperative. If the claimant holds a 20
life estate in the residence for which the primary residence property 21
tax exemption is claimed and the claimant is not shown on the tax 22
rolls as the taxpayer for that residence, the remainderman or other 23
person shown on the tax rolls as the taxpayer must also sign the 24
application. 25
(5) Notice of the primary residence property tax exemption and 26
where to obtain further information about the exemption must be 27
included on or with property tax statements and revaluation notices 28
for residential property. The department and each county assessor 29
must publicize the qualifications and manner of making claims for the 30
primary residence property tax exemption, including paid 31
advertisements or notices as deemed appropriate in the sole 32
discretion of the department and county assessors. The department and 33
county assessors must make the primary residence property tax 34
exemption information available in all languages required for voter 35
ballot outreach at the state level. 36
(6) The following conditions apply to the primary residence 37
property tax exemption: 38
(a) The residence must be occupied by the claimant as the 39
claimant's principal place of residence as of the date of the signed 40
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application under subsection (3) of this section. A claimant who 1
sells, transfers, or is displaced from the claimant's residence may 2
transfer the claimant's exemption status to a replacement residence, 3
but no claimant may receive the primary residence property tax 4
exemption on more than one residence in any calendar year. However, 5
the confinement of the claimant to a hospital, nursing home, assisted 6
living facility, or adult family home will not disqualify the claim 7
of exemption if: 8
(i) The residence is temporarily unoccupied; 9
(ii) The residence is occupied by either a spouse or state 10
registered domestic partner, a person financially dependent on the 11
claimant for support, or both; or 12
(iii) The residence is rented for the purpose of paying the 13
claimant's costs of a nursing home, hospital, assisted living 14
facility, or adult family home. 15
(b) At the time of signing the application: 16
(i)(A) The claimant must have owned, in fee or by contract 17
purchase, or have held a life estate in, the residence for which the 18
primary residence property tax exemption is claimed; and19
(B) The residence must have been located on a tax parcel with 20
fewer than five residences; or 21
(ii) If the claimant resides in a cooperative housing 22
association, corporation, or partnership, including a mobile home 23
park cooperative or manufactured housing cooperative, the claimant 24
must own a share in the cooperative representing the unit or dwelling 25
in which the claimant resides or the lot on which the claimant's 26
manufactured/mobile home or park model is situated.27
(c) For purposes of this section, a residence owned by a marital 28
community, state registered domestic partners, or cotenants is deemed 29
to be owned by each spouse, domestic partner, or cotenant, and any 30
lease for life or 99 years of a single-family dwelling unit or the 31
land upon which it stands is deemed a life estate in the residence.32
(d)(i) The assessed value of a dwelling owned by a cooperative 33
housing association, corporation, or partnership must be reduced, for 34
purposes of state property taxes levied on the dwelling, by the 35
amount of the primary residence property tax exemption to which a 36
claimant residing in that dwelling is entitled. The cooperative must 37
pass the full amount of its property tax savings under this section 38
to its members in proportion to each member's primary residence 39
property tax exemption. The cooperative may meet its obligation under 40
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this subsection (6)(d)(i) by reducing the amount owed by the members 1
to the cooperative or, if no amount be owed, by making payment to the 2
members. 3
(ii) A mobile home park cooperative or manufactured housing 4
cooperative is entitled to any unused portion of the primary 5
residence property tax exemption of its members. A mobile home park 6
cooperative or manufactured housing cooperative receiving the unused 7
portion of the primary residence property tax exemption of its 8
members must pass the full amount of its property tax savings to its 9
members in proportion to each member's unused primary residence 10
property tax exemption. The cooperative may meet its obligation under 11
this subsection (6)(d)(ii) by reducing the amount owed by the members 12
to the cooperative or, if no amount be owed, by making payment to the 13
members. For purposes of this subsection (6)(d)(ii), "unused portion 14
of the primary residence property tax exemption" means the amount by 15
which the exemption exceeds the assessed value of the manufactured/16
mobile home or park model owned by a member of the mobile home park 17
cooperative or manufactured housing cooperative. 18
(e)(i) Where a claimant has a life estate in the single-family 19
dwelling unit, the land upon which it sits, or both, which comprise 20
the claimant's residence, and a remainderman or other person would 21
have otherwise paid the state property tax exempted on the residence, 22
or portion of the residence, as a result of the claimant's primary 23
residence property tax exemption, such remainderman or other person 24
must reduce the amount owed by the claimant to the remainderman or 25
other person by the amount of the tax savings from the claimant's 26
primary residence property tax exemption. If no amount is owed by the 27
claimant to the remainderman or other person, the remainderman or 28
other person must make payment to the claimant in the full amount of 29
the tax savings from the claimant's primary residence property tax 30
exemption. 31
(ii) Where a claimant has a life estate in a cooperative 32
ownership or a community land trust, which comprise the claimant's 33
residence, and a remainderman or other person would have otherwise 34
paid the state property tax exempted on the residence, or portion of 35
the residence, as a result of the claimant's primary residence 36
property tax exemption, such remainderman or other person must reduce 37
the amount owed by the claimant to the remainderman or other person 38
by the amount of the tax savings from the claimant's primary 39
residence property tax exemption. If no amount is owed by the 40
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claimant to the remainderman or other person, the remainderman or 1
other person must make payment to the claimant in the full amount of 2
the tax savings from the claimant's primary residence property tax 3
exemption. 4
(7)(a)(i) If the assessor, as part of its existing program of 5
real property inspection or general administration of property tax 6
assessments, finds that the claimant's residence does not meet the 7
qualifications for the primary residence property tax exemption, the 8
assessor must cancel the primary residence property tax exemption and 9
notify the department. 10
(ii) If the assessor, as part of its existing program of real 11
property inspection or general administration of property tax 12
assessments, is unable to determine whether a property qualifies for 13
the primary residence property tax exemption, the assessor must 14
cancel the primary residence property tax exemption and notify the 15
department. 16
(b) A cancellation under (a) of this subsection (7) is subject to 17
appeal under the provisions of RCW 84.48.010 and in accordance with 18
the provisions of RCW 84.40.038. If the assessor determines that the 19
claimant had received the primary residence property tax exemption in 20
error in prior years, the county treasurer must collect all state 21
property taxes that would have been paid on the claimant's residence 22
for the prior years had the primary residence property tax exemption 23
not been claimed, not to exceed six years. Interest, but not 24
penalties, applies to such taxes and is computed at the same rates 25
and in the same way as interest is computed on delinquent taxes. 26
Taxes and interest imposed under this subsection (7)(b):27
(i) Must be extended on the tax roll; 28
(ii) Are due within 60 days after the date of the treasurer's 29
billing for such taxes and interest; and 30
(iii) Constitute a lien on the real property to which the tax and 31
interest applies as provided in chapter 84.60 RCW.32
(8) The department may conduct audits of the administration of 33
this section by the county assessors for the primary residence 34
property tax exemption as the department considers necessary. The 35
powers of the department under chapter 84.08 RCW apply to these 36
audits. 37
(9) The department may adopt such rules in accordance with 38
chapter 34.05 RCW, and prescribe such forms, as the department deems 39
necessary and appropriate to implement and administer this section.40
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(10) For the purposes of this section: 1
(a) "Claimant" means an individual who is receiving a primary 2
residence property tax exemption. 3
(b) "Community land trust" means a private, nonprofit 4
organization created to acquire and hold land for the benefit of a 5
community and provide secure affordable access to land and housing 6
for community residents. 7
(c) "Cooperative ownership" means a type of residential housing 8
where the corporation owns the housing units, and each resident is a 9
shareholder in the corporation based in part on the relative size of 10
the unit in which they reside. 11
(d) "Manufactured/mobile home," "manufactured housing 12
cooperative," "mobile home park cooperative," and "park model" have 13
the same meanings as in RCW 59.20.030. 14
(e) "Primary residence property tax exemption" means a tax 15
exemption from the state property tax levy for a principal place of 16
residence that meets the requirements of this section.17
(f) "Principal place of residence" means a residence occupied for 18
at least 184 days during the calendar year by the claimant.19
(g) "Residence" means a single-family dwelling unit whether such 20
unit is separate or part of a multiunit dwelling, including the land 21
on which such dwelling stands, regardless of whether ownership of the 22
single-family dwelling unit and the land on which the dwelling unit 23
stands is vested in the same person. "Residence" includes:24
(i) A single-family dwelling unit situated upon lands the fee of 25
which is vested in or held in trust by the United States or any of 26
its instrumentalities, a federally recognized Indian tribe, the state 27
of Washington or any of its political subdivisions, or a municipal 28
corporation; 29
(ii) A single-family dwelling unit consisting of a manufactured/30
mobile home or park model that has substantially lost its identity as 31
a mobile unit by virtue of its being fixed in location and placed on 32
a foundation with fixed pipe connections with sewer, water, or other 33
utilities; 34
(iii) A single-family dwelling unit consisting of a floating home 35
as defined in RCW 82.45.032. 36
(h) "State levy" means property taxes levied by the state under 37
RCW 84.52.065. 38
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NEW SECTION. Sec. 3. A new section is added to chapter 84.36 1
RCW to read as follows: 2
(1) The primary residence property tax exemption administration 3
account is created in the state treasury. All receipts from direct 4
appropriations from the legislature and any other moneys directed to 5
the account from any other source must be deposited into the account. 6
Moneys in the account may be spent only after appropriation. 7
Expenditures from the account may be used only for the purposes 8
provided in this section. 9
(2)(a) Funds deposited into the primary residence property tax 10
exemption administration account must be distributed to each county 11
to assist with the costs incurred by the counties in administering 12
the primary residence property tax exemption in section 2 of this 13
act. 14
(b)(i) Except as provided in (b)(ii) of this subsection and 15
subject to appropriation by the legislature, each county is entitled 16
annually to an amount equal to $5.00 multiplied by the number of 17
applications for the primary residence property tax exemption that 18
the state processed in the most recent calendar year.19
(ii) For the initial distributions in calendar year 2026 and 2027 20
and subject to appropriation by the legislature, the distribution 21
amount is equal to $10.00 multiplied by the estimated number of 22
primary residence property tax exemptions that the county will 23
process in calendar year 2027. The department, with the assistance of 24
the county assessors, must estimate the number of primary residence 25
property tax exemptions that the state will process in calendar year 26
2027. 27
(iii) If funds in the primary residence property tax exemption 28
administration account are insufficient to make the full 29
distributions under this subsection, the distributions to all 30
counties must be reduced proportionately. 31
(3)(a) Distributions under subsection (2) of this section must be 32
made by the state treasurer annually by August 1st, beginning August 33
1, 2026, and by August 1st each year thereafter. By July 25th of each 34
year, the department must certify to the state treasurer the amounts 35
to be distributed under this section. Once finalized, no changes may 36
be made to the certification for any reason. 37
(b) By June 1, 2026, and by June 1st each year thereafter, each 38
county assessor must submit to the department any necessary data from 39
the previous assessment year in order to complete the estimate under 40
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this subsection (3) for the first year of the exemption and every 1
year thereafter. The data required by this subsection (3) must be 2
provided in a form and manner prescribed by the department.3
(4) The department's estimates and certifications required under 4
this section may not be overturned by a court except upon a showing 5
of willful misconduct by clear, cogent, and convincing evidence.6
(5) All distributions to counties from the primary residence 7
property tax exemption administration account constitute increases in 8
state distributions of revenue to political subdivisions for purposes 9
of state reimbursement for the costs of new programs and increases in 10
service levels under RCW 43.135.060. 11
Sec. 4. RCW 84.48.010 and 2017 c 155 s 1 are each amended to 12
read as follows: 13
(1) Prior to July 15th, the county legislative authority must 14
form a board for the equalization of the assessment of the property 15
of the county. The members of the board must receive a per diem 16
amount as set by the county legislative authority for each day of 17
actual attendance of the meeting of the board of equalization to be 18
paid out of the current expense fund of the county. However, when the 19
county legislative authority constitutes the board they may only 20
receive their compensation as members of the county legislative 21
authority. The board of equalization must meet in open session for 22
this purpose annually on the 15th day of July or within ((fourteen)) 23
14 days of certification of the county assessment rolls, whichever is 24
later, and, having each taken an oath fairly and impartially to 25
perform their duties as members of such board, they must examine and 26
compare the returns of the assessment of the property of the county 27
and proceed to equalize the same, so that each tract or lot of real 28
property and each article or class of personal property must be 29
entered on the assessment list at its true and fair value, according 30
to the measure of value used by the county assessor in such 31
assessment year, which is presumed to be correct under RCW 32
84.40.0301, and subject to the following rules: 33
(a) They must raise the valuation of each tract or lot or item of 34
real property which is returned below its true and fair value to such 35
price or sum as to be the true and fair value thereof, after at least 36
five days' notice must have been given in writing to the owner or 37
agent. 38
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(b) They must reduce the valuation of each tract or lot or item 1
which is returned above its true and fair value to such price or sum 2
as to be the true and fair value thereof. 3
(c) They must raise the valuation of each class of personal 4
property which is returned below its true and fair value to such 5
price or sum as to be the true and fair value thereof, and they must 6
raise the aggregate value of the personal property of each individual 7
whenever the aggregate value is less than the true valuation of the 8
taxable personal property possessed by such individual, to such sum 9
or amount as to be the true value thereof, after at least five days' 10
notice must have been given in writing to the owner or agent thereof.11
(d) They must reduce the valuation of each class of personal 12
property enumerated on the detail and assessment list of the current 13
year, which is returned above its true and fair value, to such price 14
or sum as to be the true and fair value thereof; and they must reduce 15
the aggregate valuation of the personal property of such individual 16
who has been assessed at too large a sum to such sum or amount as was 17
the true and fair value of the personal property. 18
(e) The board may review all claims for either real or personal 19
property tax exemption , including the primary residence property tax 20
exemption under section 2 of this act, as determined by the county 21
assessor, and must consider any taxpayer appeals from the decision of 22
the assessor thereon to determine (i) if the taxpayer is entitled to 23
an exemption, and (ii) if so, the amount thereof. 24
(2) The board must notify the taxpayer and assessor of the 25
board's decision within ((forty-five)) 45 days of any hearing on the 26
taxpayer's appeal of the assessor's valuation of real or personal 27
property. 28
(3) The clerk of the board must keep an accurate journal or 29
record of the proceedings and orders of the board showing the facts 30
and evidence upon which their action is based, and the record must be 31
published the same as other proceedings of county legislative 32
authority, and must make a true record of the changes of the 33
descriptions and assessed values ordered by the county board of 34
equalization. The assessor must correct the real and personal 35
assessment rolls in accordance with the changes made by the county 36
board of equalization. 37
(4) The county board of equalization must meet on the 15th day of 38
July or within ((fourteen)) 14 days of certification of the county 39
assessment rolls, whichever is later, and may continue in session and 40
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adjourn from time to time during a period not to exceed four weeks, 1
but must remain in session not less than three days. However, the 2
county board of equalization with the approval of the county 3
legislative authority may convene at any time when petitions filed 4
exceed ((twenty-five)) 25, or ((ten)) 10 percent of the number of 5
appeals filed in the preceding year, whichever is greater.6
(5) No taxes, except special taxes, may be extended upon the tax 7
rolls until the property valuations are equalized by the department 8
of revenue for the purpose of raising the state revenue.9
(6) County legislative authorities as such have at no time any 10
authority to change the valuation of the property of any person or to 11
release or commute in whole or in part the taxes due on the property 12
of any person. 13
NEW SECTION. Sec. 5. This act takes effect January 1, 2026, if 14
the proposed amendment to Article VII of the state Constitution 15
(Senate Joint Resolution No. . . . . (S-0811/25)), providing for a 16
residential real property tax exemption, is validly submitted to and 17
is approved and ratified by the voters at the next general election. 18
If the proposed amendment is not approved and ratified, this act is 19
void in its entirety.20
NEW SECTION. Sec. 6. This act does not affect any existing 21
right acquired or liability or obligation incurred under the sections 22
amended or repealed or under any rule or order adopted under those 23
sections, nor does it affect any proceeding instituted under those 24
sections.25
NEW SECTION. Sec. 7. This act applies to taxes levied for 26
collection in 2028 and thereafter.27
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