Homestead exemption

AN ACT Relating to creating a homestead exemption for seniors, 1
persons retired due to disability, and veterans with disabilities; 2
adding a new section to chapter 84.36 RCW; and creating new sections.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 84.36 5
RCW to read as follows: 6
(1)(a) Subject to the conditions in this section, a portion of 7
the assessed value of a residence is exempt from property taxation. 8
For taxes levied for collection in 2027 and thereafter, the homestead 9
exemption is equal to $150,000 of the assessed value of a residence 10
for persons who have a combined disposable income equal to or less 11
than $65,000. The person claiming the exemption must be:12
(i) Sixty-one years of age or older on December 31st of the year 13
in which the exemption claim is filed, or must have been, at the time 14
of filing, retired from regular gainful employment by reason of 15
disability; or 16
(ii) A veteran of the armed forces of the United States entitled 17
to and receiving compensation from the United States department of 18
veterans affairs at: 19
(A) A combined service-connected evaluation rating of 40 percent 20
or higher; or 21
S-3800.2
SENATE BILL 6316
State of Washington 69th Legislature 2026 Regular Session
By Senators McCune and J. Wilson
Read first time 01/27/26. Referred to Committee on Ways & Means.
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(B) A total disability rating for a service-connected disability 1
without regard to evaluation percent. 2
(b) The amount of the homestead exemption for a residence may not 3
result in a tax reduction that exceeds the amount of property taxes 4
that would otherwise be levied on that residence. 5
(2) The homestead exemption is in addition to, and applied after, 6
the exemption provided in RCW 84.36.379 through 84.36.389.7
(3)(a) The homestead exemption must be claimed and renewed on 8
declaration and renewal declaration forms developed by the department 9
or by the county assessor and approved by the department. Each county 10
assessor must make declaration and renewal declaration forms 11
available at the assessor's office, on the assessor's official 12
website, and by mail or email upon request. 13
(b) The claimant or the claimant's designated agent or legal 14
guardian must sign the declaration or renewal declaration declaring 15
that the property for which a homestead exemption is sought is the 16
claimant's principal residence within the meaning of subsection 17
(4)(a) and (b) of this section. If the claimant resides in a 18
cooperative housing association, corporation, or partnership, the 19
declaration or renewal declaration must also be signed by the 20
authorized agent of such cooperative. If the claimant holds a life 21
estate in the residence for which an exemption is claimed and the 22
claimant is not shown on the tax rolls as the taxpayer for that 23
residence, the remainderman or other person shown on the tax rolls as 24
the taxpayer must also sign the declaration or renewal declaration. 25
All signatures on a declaration or renewal declaration must be made 26
under penalty of perjury. 27
(c) Notice of the homestead exemption and where to obtain further 28
information about the exemption must be included on or with property 29
tax statements and revaluation notices for residential property. The 30
department and each county assessor are required to publicize the 31
qualifications and manner of making claims for the homestead 32
exemption, including such paid advertisements or notices as deemed 33
appropriate in the sole discretion of the department and county 34
assessors. 35
(4) The following conditions apply to the homestead exemption:36
(a) The residence must be occupied by the claimant as the 37
claimant's principal place of residence on the date of the signed 38
declaration or renewal declaration under subsection (3) of this 39
section. A claimant who sells, transfers, or is displaced from the 40
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claimant's residence may transfer the claimant's exemption status to 1
a replacement residence, but no claimant may receive an exemption on 2
more than one residence in any calendar year. However, the 3
confinement of the claimant to a hospital, nursing home, assisted 4
living facility, or adult family home does not disqualify the claim 5
of exemption if: 6
(i) The residence is temporarily unoccupied; 7
(ii) The residence is occupied by either a spouse, state 8
registered domestic partner, or a person financially dependent on the 9
claimant for support, or both; or 10
(iii) The residence is rented for the purpose of paying the 11
claimant's costs of a nursing home, hospital, assisted living 12
facility, or adult family home. 13
(b) At the time of signing the declaration or renewal 14
declaration: 15
(i) The claimant must have owned, in fee or by contract purchase, 16
or have held a life estate in, the residence for which the homestead 17
exemption is claimed; or 18
(ii) If the claimant resides in a cooperative housing 19
association, corporation, or partnership, including a mobile home 20
park cooperative or manufactured housing cooperative, the claimant 21
must own a share in the cooperative representing the unit or dwelling 22
in which the claimant resides or the lot on which the claimant's 23
manufactured/mobile home or park model is situated.24
(c) For purposes of this subsection (4), a residence owned by a 25
marital community, state registered domestic partners, or cotenants 26
is deemed to be owned by each spouse, domestic partner, or cotenant, 27
and any lease for life is deemed a life estate. 28
(d) Except as provided in (e) of this subsection, the declaration 29
form identified in subsection (5) of this section must be signed and 30
returned to the county assessor no later than June 30th for exemption 31
from state taxes payable the following year. 32
(e) A homestead exemption continues for no more than six 33
consecutive years unless a renewal declaration is filed with the 34
county assessor. At least once every six years the county assessor 35
must, no later than March 1st, notify claimants currently receiving a 36
homestead exemption of the requirement to file a renewal declaration. 37
The county assessor may also require a renewal declaration following 38
any change in state law regarding the qualifications or conditions 39
for the homestead exemption. Each claimant receiving a homestead 40
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exemption must file with the county assessor a renewal declaration no 1
later than June 30th of the year the assessor notifies such person of 2
the requirement to file the renewal declaration. 3
(f)(i) The assessed value of a dwelling owned by a cooperative 4
housing association, corporation, or partnership must be reduced, for 5
purposes of state property taxes levied on the dwelling, by the 6
amount of homestead exemption to which a claimant residing in that 7
dwelling is entitled. The cooperative must pass the full amount of 8
its property tax savings under this section to its members in 9
proportion to each member's homestead exemption. The cooperative may 10
meet its obligation under this subsection (4)(f)(i) by reducing the 11
amount owed by the members to the cooperative or, if no amount is 12
owed, by making payment to the members. 13
(ii) A mobile home park cooperative or manufactured housing 14
cooperative is entitled to any unused portion of the homestead 15
exemption of its members. A mobile home park cooperative or 16
manufactured housing cooperative receiving the unused portion of the 17
homestead exemption of its members must pass the full amount of its 18
property tax savings to its members in proportion to each member's 19
unused exemption. The cooperative may meet its obligation under this 20
subsection (4)(f)(ii) by reducing the amount owed by the members to 21
the cooperative or, if no amount is owed, by making payment to the 22
members. For purposes of this subsection (4)(f)(ii), "unused portion 23
of the homestead exemption" means the amount by which the maximum 24
allowable homestead exemption exceeds the assessed value of the 25
manufactured/mobile home or park model owned by a member of the 26
mobile home park cooperative or manufactured housing cooperative.27
(g) A claimant granted a homestead exemption must immediately 28
inform the county assessor, on forms created or approved by the 29
department, of any change in status affecting the claimant's 30
entitlement to an exemption. 31
(h) Where a claimant has a life estate in the claimant's 32
residence and a remainderman or other person would have otherwise 33
paid the state property tax exempted on the residence as a result of 34
the claimant's homestead exemption, such remainderman or other person 35
must reduce the amount owed by the claimant to the remainderman or 36
other person by the amount of the tax savings from the claimant's 37
exemption. If no amount is owed by the claimant to the remainderman 38
or other person, the remainderman or other person must make payment 39
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to the claimant in the full amount of the tax savings from the 1
claimant's homestead exemption. 2
(5)(a)(i) If the assessor finds that the claimant's residence 3
does not meet the qualifications for a homestead exemption, the 4
assessor must deny or cancel the exemption. 5
(ii) If the assessor receives a declaration or renewal 6
declaration after the deadline in subsection (4)(d) or (e) of this 7
section, the assessor must deny the homestead exemption unless the 8
assessor determines that the claimant qualifies for the exemption and 9
that good cause exists to excuse the late filing. A claimant whose 10
homestead exemption was denied or canceled because the declaration or 11
renewal declaration was filed after the deadline in subsection (4)(d) 12
or (e) of this section may seek a refund of property taxes paid as a 13
result of the denial or cancellation, as provided in RCW 84.69.020. 14
For purposes of this subsection (5)(a)(ii), good cause may be shown 15
by one or more of the following circumstances: 16
(A) Death or serious illness of the claimant or a member of the 17
claimant's immediate family, as defined in RCW 42.17A.005, within two 18
weeks of the due date of the declaration or renewal declaration;19
(B) The declaration or renewal declaration was mailed timely but 20
inadvertently sent to the wrong address; 21
(C) The claimant received incorrect, ambiguous, or misleading 22
written advice regarding the qualifications or filing requirements 23
for the exemption from the county assessor's staff;24
(D) Natural disaster, such as flood or earthquake, occurring 25
within two weeks of the due date of the declaration or renewal 26
declaration; 27
(E) Delay or loss of the declaration or renewal declaration by 28
the postal service, and documented by the postal service;29
(F) The claimant was not sent a notice of the requirement to file 30
a renewal declaration within the six-year period as required by 31
subsection (4)(e) of this section; or 32
(G) Other circumstances as the department may provide by rule.33
(b) A denial or cancellation under this subsection is subject to 34
appeal under RCW 84.48.010 and in accordance with RCW 84.40.038.35
(c) If the assessor determines that the claimant had received a 36
homestead exemption in error in prior years, the county treasurer 37
must collect all property taxes that would have been paid on the 38
claimant's residence for the prior years had the homestead exemption 39
not been claimed, not to exceed six years. Interest, but not 40
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penalties, applies to such taxes and is computed at the same rates 1
and in the same way as interest is computed on delinquent taxes. 2
Taxes and interest imposed under this subsection (5)(c): (i) Must be 3
extended on the tax roll; (ii) are due within 30 days after the date 4
of the treasurer's billing for such taxes and interest; and (iii) 5
constitute a lien on the real property to which the tax and interest 6
applies as provided in chapter 84.60 RCW. 7
(6) The department may conduct audits of the administration of 8
this section and claims filed for the homestead exemption as the 9
department considers necessary. The powers of the department under 10
chapter 84.08 RCW apply to these audits. 11
(7) The department may adopt such rules in accordance with 12
chapter 34.05 RCW, and prescribe such forms, as the department deems 13
necessary and appropriate to implement and administer this section.14
(8) The definitions in this subsection apply throughout this 15
section unless the context clearly requires otherwise.16
(a) "Claimant" means an individual who has applied for or is 17
receiving a homestead exemption. 18
(b) "Combined disposable income" has the same meaning as in RCW 19
84.36.383. 20
(c) "Homestead exemption" means an exemption from a portion of 21
state and local property taxes. 22
(d) "Manufactured/mobile home," "manufactured housing 23
cooperative," "mobile home park cooperative," and "park model" have 24
the same meanings as provided in RCW 59.20.030. 25
(e) "Residence" means a single-family dwelling unit whether such 26
unit is separate or part of a multiunit dwelling, including the land 27
on which such dwelling stands. "Residence" includes:28
(i) A single-family dwelling situated upon lands the fee of which 29
is vested in or held in trust by the United States or any of its 30
instrumentalities, a federally recognized Indian tribe, the state of 31
Washington or any of its political subdivisions, or a municipal 32
corporation; 33
(ii) A single-family dwelling consisting of a manufactured/mobile 34
home or park model that has substantially lost its identity as a 35
mobile unit by virtue of its being fixed in location and placed on a 36
foundation with fixed pipe connections with sewer, water, or other 37
utilities; and 38
(iii) A single-family dwelling consisting of a floating home as 39
defined in RCW 82.45.032. 40
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NEW SECTION. Sec. 2. This act does not affect any existing 1
right acquired or liability or obligation incurred under the sections 2
amended or repealed or under any rule or order adopted under those 3
sections, nor does it affect any proceeding instituted under those 4
sections.5
NEW SECTION. Sec. 3. This act applies to taxes levied for 6
collection in 2027 and thereafter.7
NEW SECTION. Sec. 4. RCW 82.32.805 and 82.32.808 do not apply 8
to this act.9
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