Disability/property tax ex.

AN ACT Relating to providing a property tax exemption for 1
qualifying housing used as a residency by tenants meeting certain 2
disability criteria; adding a new section to chapter 84.36 RCW; and 3
creating a new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 84.36 6
RCW to read as follows: 7
(1) The assessed valuation of qualifying housing must be reduced 8
by $50,000 for each qualifying tenant occupying the qualifying 9
housing, subject to the conditions and requirements of this section.10
(2) To claim the exemption under this section for qualifying 11
housing, the owner of the property must submit an application with 12
the county assessor in a form and manner required by the department. 13
An application submitted during the current calendar year applies to 14
property taxes levied for collection in the following calendar year. 15
The application must contain information, as specified by the 16
department, substantiating that each qualifying tenant is entitled to 17
and receiving social security disability insurance payments or the 18
qualifying tenant is a veteran of the armed forces of the United 19
States entitled to and receiving compensation from the United States 20
department of veterans affairs in accordance with this section.21
S-3553.3
SENATE BILL 5986
State of Washington 69th Legislature 2026 Regular Session
By Senator Fortunato
Prefiled 01/05/26.
p. 1 SB 5986
(3) At least 80 percent of the property tax savings from the 1
valuation exemption authorized under this section must verifiably and 2
uniformly inure to the benefit of a qualifying tenant or qualifying 3
tenants. The requirement under this subsection (3) must be 4
effectuated through a reduction, elimination, or refund of one or 5
more rental payments due and payable by the qualifying tenant during 6
the same calendar year in which the property owner benefits from the 7
exemption authorized under this section. 8
(4) The amount of the exemption under this section may not exceed 9
the assessed value of the qualifying housing. 10
(5) The definitions in this subsection apply to this section 11
unless the context clearly requires otherwise: 12
(a) "Disability" has the same meaning as provided in 42 U.S.C. 13
Sec. 423 (d)(1)(A) as amended prior to January 1, 2025, or such 14
subsequent date as the department may provide by rule consistent with 15
the purpose of this section. 16
(b) "Dwelling unit" means a structure or that part of a structure 17
which is occupied by one person or by two or more persons maintaining 18
a common household. 19
(c) "Multiple-family residential property" means a building or a 20
group of buildings having two or more dwelling units not designed or 21
used as transient accommodations and not including hotels and motels. 22
"Multiple-family residential property" includes the land on which 23
such building or buildings stand. 24
(d) "Qualifying housing" means a single-family residential 25
property or multiple-family residential property. 26
(e) "Qualifying tenant" means a tenant who: 27
(i) Will have resided at the qualifying housing for at least nine 28
months during the calendar year in which the application for 29
exemption is submitted by the property owner of the qualifying 30
housing to the county assessor; and 31
(ii) Is either retired from regular gainful employment by reason 32
of disability or a veteran of the armed forces of the United States 33
entitled to and receiving compensation from the United States 34
department of veterans affairs with a combined service-connected 35
evaluation rating of 40 percent or higher or a total disability 36
rating for a service-connected disability without regard to 37
evaluation percent. 38
p. 2 SB 5986
(f) "Single-family residential property" means an independent and 1
freestanding structure containing one dwelling unit and the land on 2
which the dwelling unit stands. 3
(g) "Tenant" means any person who is entitled to occupy a 4
dwelling unit primarily for living or dwelling purposes under a 5
rental agreement. 6
NEW SECTION. Sec. 2. RCW 82.32.805 and 82.32.808 do not apply 7
to this act.8
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p. 3 SB 5986