EHB 1106
SignedHouse
Disabled veterans/prop. tax
Recognizing the tremendous sacrifices made by our military veterans by phasing down the disability rating requirements to ensure more disabled veterans are eligible for property tax relief.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill lowers the disability rating threshold for disabled veterans to qualify for Washington’s property tax exemption, phasing down from 80% to 20% over three years. It also strengthens protections for surviving spouses and clarifies income and valuation rules to help more veterans keep their exemptions despite income changes or relocation.
- Phases down the required service-connected disability rating for veterans to qualify for property tax relief: from 80% in 2026, to 60% in 2027, to 40% in 2028, and finally to 20% starting in 2029.
- Expands eligibility to include veterans with a total disability rating (100%) regardless of evaluation percentage.
- Allows veterans to transfer their exemption to a new residence if they sell or move due to long-term care, as long as the original residence is not occupied by someone else.
- Maintains exemption eligibility for veterans whose income rises due to Social Security cost-of-living adjustments, preventing disqualification solely from inflation-based income increases.
- Sets income-based exemption tiers: full exemption for lowest income levels, partial exemption for middle levels, and no exemption for highest income levels, with specific valuation rules for calculating the exemption amount.
Who is affected
- Disabled military veterans — Disabled veterans with service-connected disabilities who meet the lowered disability rating thresholds (starting at 20% or higher by 2028) and other eligibility requirements may qualify for property tax exemptions on their primary residence.
- Surviving spouses and domestic partners — Surviving spouses or domestic partners age 57 or older who were living with a qualifying veteran at the time of death may continue to receive the property tax exemption if they meet income and other criteria.
- Local governments — Local governments (counties and cities) may lose some property tax revenue if they include this exemption in voter-approved tax measures, depending on how many residents qualify.
- County assessors and property tax administrators — Property assessors must verify income documentation and determine exemption amounts for applicants, adding administrative responsibilities.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
By lowering the disability rating threshold from 80% to 20%, the bill dramatically expands access to property tax relief for disabled veterans — including those with moderate or fluctuating disabilities who were previously excluded. This recognizes that even low VA ratings can reflect significant functional impairment and long-term health burdens, aligning policy with the reality of modern disability evaluations.
Rights & LibertiesPeopleRef: Sec. 1(3)(a)(ii)(A)(I) as phased 2026–2029The exemption transferability and long-term care provisions allow veterans to retain relief when relocating for care or selling homes — a critical protection for aging veterans who face displacement due to health needs, preserving housing stability and reducing financial stress during vulnerable transitions.
HousingPeopleRef: Sec. 1(1)(a), (3)(a)(ii)(b)The income-based exemption tiers and the explicit protection against disqualification due to Social Security COLAs prevent inflation-driven loss of benefits — a major improvement over prior rules that could penalize veterans for cost-of-living increases beyond their control, supporting long-term benefit stability.
FinancialPeopleRef: Sec. 1(4)(a), (d)(i)Extending exemption continuity to surviving spouses/domestic partners age 57+ (especially those who were living with the veteran at death) strengthens economic security for widowed seniors, many of whom face disproportionate poverty risk after losing a partner’s income and benefits.
Rights & LibertiesPeopleRef: Sec. 1(3)(a)(ii)(b), new section on surviving spouse eligibilityThe tiered exemption structure (full, partial, none) based on disposable income ensures relief is targeted to those most in need — low- and middle-income veterans benefit significantly, while high-income veterans receive less or nothing, making the policy progressive in practice.
HousingPeopleRef: Sec. 1(5)(a)-(b)(ii)
Potential Concerns (4)
The bill reduces property tax revenue for local governments that include the exemption in voter-approved measures, especially as eligibility expands to veterans with as low as 20% disability rating. While the fiscal impact is uncertain, the trend of expanding eligibility without corresponding state funding increases puts pressure on local budgets that rely on property taxes to fund schools, fire districts, and other essential services.
Local GovernmentPeopleRef: Sec. 1(5)(a)-(b)(ii)County assessors and property tax administrators must verify income documentation and calculate tiered exemption amounts for applicants, adding administrative burden and potential compliance costs to local offices already constrained by staffing and resources.
Local GovernmentPeopleRef: Sec. 1(4)(a)-(e)The expansion of eligibility to veterans with 20% disability (from 80%) significantly broadens the pool of beneficiaries, but the bill does not address whether the VA disability rating system accurately reflects functional impairment — some veterans with 20% ratings may have minimal functional limitations, and the policy may inadvertently dilute the exemption’s focus on those with the most severe disabilities and highest care needs.
Public SafetyPeopleRef: Sec. 1(3)(a)(ii)(A)(I) as phased 2026–2029The income-based exemption tiers and valuation rules may create complexity for low-income seniors and disabled veterans who are not veterans — they remain ineligible for this relief despite similar financial need, potentially increasing inequity between groups with overlapping vulnerabilities.
HousingLean peopleRef: Sec. 1(5)(a)-(b)(ii)
Who Is Most Affected
Disabled veterans with 20–79% service-connected ratings gain access to property tax relief for the first time starting in 2028; many are low- or moderate-income and face high out-of-pocket medical costs. This is a major positive impact, especially for those who were previously excluded due to the 80% threshold.
Surviving spouses (especially women, who are overrepresented among widowed seniors) benefit from continued exemption eligibility if 57+ and income-qualified — reducing poverty risk and housing instability after spousal loss.
Local governments face reduced property tax revenue where the exemption is included in voter-approved levies. While the fiscal impact is uncertain and likely modest per jurisdiction, rural counties with fewer high-value properties may be disproportionately affected.
County assessors and property tax administrators must verify income documentation and apply complex, tiered exemption calculations — increasing workload and administrative costs, especially during the 2026–2029 rollout phase.
Low-income seniors (non-veterans) who are disabled but do not meet the VA rating criteria remain excluded from this relief, potentially worsening housing cost burdens relative to veteran peers with similar incomes.