wa-law.org > bill > 2025-26 > SB 6316 > Original Bill
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Subject to the conditions in this section, a portion of the assessed value of a residence is exempt from property taxation. For taxes levied for collection in 2027 and thereafter, the homestead exemption is equal to $150,000 of the assessed value of a residence for persons who have a combined disposable income equal to or less than $65,000. The person claiming the exemption must be:
Sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or must have been, at the time of filing, retired from regular gainful employment by reason of disability; or
A veteran of the armed forces of the United States entitled to and receiving compensation from the United States department of veterans affairs at:
(A) A combined service-connected evaluation rating of 40 percent or higher; or
(B) A total disability rating for a service-connected disability without regard to evaluation percent.
b. The amount of the homestead exemption for a residence may not result in a tax reduction that exceeds the amount of property taxes that would otherwise be levied on that residence.
The homestead exemption is in addition to, and applied after, the exemption provided in RCW 84.36.379 through 84.36.389.
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The homestead exemption must be claimed and renewed on declaration and renewal declaration forms developed by the department or by the county assessor and approved by the department. Each county assessor must make declaration and renewal declaration forms available at the assessor's office, on the assessor's official website, and by mail or email upon request.
The claimant or the claimant's designated agent or legal guardian must sign the declaration or renewal declaration declaring that the property for which a homestead exemption is sought is the claimant's principal residence within the meaning of subsection (4)(a) and (b) of this section. If the claimant resides in a cooperative housing association, corporation, or partnership, the declaration or renewal declaration must also be signed by the authorized agent of such cooperative. If the claimant holds a life estate in the residence for which an exemption is claimed and the claimant is not shown on the tax rolls as the taxpayer for that residence, the remainderman or other person shown on the tax rolls as the taxpayer must also sign the declaration or renewal declaration. All signatures on a declaration or renewal declaration must be made under penalty of perjury.
Notice of the homestead exemption and where to obtain further information about the exemption must be included on or with property tax statements and revaluation notices for residential property. The department and each county assessor are required to publicize the qualifications and manner of making claims for the homestead exemption, including such paid advertisements or notices as deemed appropriate in the sole discretion of the department and county assessors.
The following conditions apply to the homestead exemption:
The residence must be occupied by the claimant as the claimant's principal place of residence on the date of the signed declaration or renewal declaration under subsection (3) of this section. A claimant who sells, transfers, or is displaced from the claimant's residence may transfer the claimant's exemption status to a replacement residence, but no claimant may receive an exemption on more than one residence in any calendar year. However, the confinement of the claimant to a hospital, nursing home, assisted living facility, or adult family home does not disqualify the claim of exemption if:
The residence is temporarily unoccupied;
The residence is occupied by either a spouse, state registered domestic partner, or a person financially dependent on the claimant for support, or both; or
The residence is rented for the purpose of paying the claimant's costs of a nursing home, hospital, assisted living facility, or adult family home.
At the time of signing the declaration or renewal declaration:
The claimant must have owned, in fee or by contract purchase, or have held a life estate in, the residence for which the homestead exemption is claimed; or
If the claimant resides in a cooperative housing association, corporation, or partnership, including a mobile home park cooperative or manufactured housing cooperative, the claimant must own a share in the cooperative representing the unit or dwelling in which the claimant resides or the lot on which the claimant's manufactured/mobile home or park model is situated.
For purposes of this subsection (4), a residence owned by a marital community, state registered domestic partners, or cotenants is deemed to be owned by each spouse, domestic partner, or cotenant, and any lease for life is deemed a life estate.
Except as provided in (e) of this subsection, the declaration form identified in subsection (5) of this section must be signed and returned to the county assessor no later than June 30th for exemption from state taxes payable the following year.
A homestead exemption continues for no more than six consecutive years unless a renewal declaration is filed with the county assessor. At least once every six years the county assessor must, no later than March 1st, notify claimants currently receiving a homestead exemption of the requirement to file a renewal declaration. The county assessor may also require a renewal declaration following any change in state law regarding the qualifications or conditions for the homestead exemption. Each claimant receiving a homestead exemption must file with the county assessor a renewal declaration no later than June 30th of the year the assessor notifies such person of the requirement to file the renewal declaration.
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The assessed value of a dwelling owned by a cooperative housing association, corporation, or partnership must be reduced, for purposes of state property taxes levied on the dwelling, by the amount of homestead exemption to which a claimant residing in that dwelling is entitled. The cooperative must pass the full amount of its property tax savings under this section to its members in proportion to each member's homestead exemption. The cooperative may meet its obligation under this subsection (4)(f)(i) by reducing the amount owed by the members to the cooperative or, if no amount is owed, by making payment to the members.
A mobile home park cooperative or manufactured housing cooperative is entitled to any unused portion of the homestead exemption of its members. A mobile home park cooperative or manufactured housing cooperative receiving the unused portion of the homestead exemption of its members must pass the full amount of its property tax savings to its members in proportion to each member's unused exemption. The cooperative may meet its obligation under this subsection (4)(f)(ii) by reducing the amount owed by the members to the cooperative or, if no amount is owed, by making payment to the members. For purposes of this subsection (4)(f)(ii), "unused portion of the homestead exemption" means the amount by which the maximum allowable homestead exemption exceeds the assessed value of the manufactured/mobile home or park model owned by a member of the mobile home park cooperative or manufactured housing cooperative.
A claimant granted a homestead exemption must immediately inform the county assessor, on forms created or approved by the department, of any change in status affecting the claimant's entitlement to an exemption.
Where a claimant has a life estate in the claimant's residence and a remainderman or other person would have otherwise paid the state property tax exempted on the residence as a result of the claimant's homestead exemption, such remainderman or other person must reduce the amount owed by the claimant to the remainderman or other person by the amount of the tax savings from the claimant's exemption. If no amount is owed by the claimant to the remainderman or other person, the remainderman or other person must make payment to the claimant in the full amount of the tax savings from the claimant's homestead exemption.
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If the assessor finds that the claimant's residence does not meet the qualifications for a homestead exemption, the assessor must deny or cancel the exemption.
If the assessor receives a declaration or renewal declaration after the deadline in subsection (4)(d) or (e) of this section, the assessor must deny the homestead exemption unless the assessor determines that the claimant qualifies for the exemption and that good cause exists to excuse the late filing. A claimant whose homestead exemption was denied or canceled because the declaration or renewal declaration was filed after the deadline in subsection (4)(d) or (e) of this section may seek a refund of property taxes paid as a result of the denial or cancellation, as provided in RCW 84.69.020. For purposes of this subsection (5)(a)(ii), good cause may be shown by one or more of the following circumstances:
(A) Death or serious illness of the claimant or a member of the claimant's immediate family, as defined in RCW 42.17A.005, within two weeks of the due date of the declaration or renewal declaration;
(B) The declaration or renewal declaration was mailed timely but inadvertently sent to the wrong address;
(C) The claimant received incorrect, ambiguous, or misleading written advice regarding the qualifications or filing requirements for the exemption from the county assessor's staff;
(D) Natural disaster, such as flood or earthquake, occurring within two weeks of the due date of the declaration or renewal declaration;
(E) Delay or loss of the declaration or renewal declaration by the postal service, and documented by the postal service;
(F) The claimant was not sent a notice of the requirement to file a renewal declaration within the six-year period as required by subsection (4)(e) of this section; or
(G) Other circumstances as the department may provide by rule.
b. A denial or cancellation under this subsection is subject to appeal under RCW 84.48.010 and in accordance with RCW 84.40.038.
c. If the assessor determines that the claimant had received a homestead exemption in error in prior years, the county treasurer must collect all property taxes that would have been paid on the claimant's residence for the prior years had the homestead exemption not been claimed, not to exceed six years. Interest, but not penalties, applies to such taxes and is computed at the same rates and in the same way as interest is computed on delinquent taxes. Taxes and interest imposed under this subsection (5)(c): (i) Must be extended on the tax roll; (ii) are due within 30 days after the date of the treasurer's billing for such taxes and interest; and (iii) constitute a lien on the real property to which the tax and interest applies as provided in chapter 84.60 RCW.
The department may conduct audits of the administration of this section and claims filed for the homestead exemption as the department considers necessary. The powers of the department under chapter 84.08 RCW apply to these audits.
The department may adopt such rules in accordance with chapter 34.05 RCW, and prescribe such forms, as the department deems necessary and appropriate to implement and administer this section.
The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
"Claimant" means an individual who has applied for or is receiving a homestead exemption.
"Combined disposable income" has the same meaning as in RCW 84.36.383.
"Homestead exemption" means an exemption from a portion of state and local property taxes.
"Manufactured/mobile home," "manufactured housing cooperative," "mobile home park cooperative," and "park model" have the same meanings as provided in RCW 59.20.030.
"Residence" means a single-family dwelling unit whether such unit is separate or part of a multiunit dwelling, including the land on which such dwelling stands. "Residence" includes:
A single-family dwelling situated upon lands the fee of which is vested in or held in trust by the United States or any of its instrumentalities, a federally recognized Indian tribe, the state of Washington or any of its political subdivisions, or a municipal corporation;
A single-family dwelling consisting of a manufactured/mobile home or park model that has substantially lost its identity as a mobile unit by virtue of its being fixed in location and placed on a foundation with fixed pipe connections with sewer, water, or other utilities; and
A single-family dwelling consisting of a floating home as defined in RCW 82.45.032.
This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections.
This act applies to taxes levied for collection in 2027 and thereafter.
RCW 82.32.805 and 82.32.808 do not apply to this act.