HB 2024
In CommitteeHouse
Primary residence/tax
Providing housing safety, security, and protection by creating the primary residence property tax exemption.
This status may be delayed. See Action History below for the latest updates.
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 creates a new property tax exemption for Washington homeowners’ primary residences, reducing their state-level property taxes by at least $100,000 or 60% of their county’s median home value—whichever is greater—starting in 2028. It also establishes rules for claiming, verifying, and transferring the exemption, and provides funding to counties to help administer the program.
- Creates a new primary residence property tax exemption that reduces state-level property taxes on a homeowner’s main residence by the greater of $100,000 or 60% of the county median residential assessed value (starting in 2028).
- The exemption applies only to the state portion of property taxes—not local taxes (e.g., schools, cities, fire districts).
- Requires homeowners to apply by April 1 before the year the exemption takes effect, with online filing available; applicants must certify under penalty of perjury that the property is their principal residence.
- Allows transfer of exemption status if a homeowner sells or moves temporarily (e.g., to a nursing home) while keeping the home occupied by a spouse, dependent, or renter to cover care costs.
- Provides funding to counties through a new administration account to help cover costs of processing applications and verifying eligibility.
- Includes special rules for cooperatives, community land trusts, mobile home parks, and life-estate arrangements to ensure the tax savings reach the actual residents.
Who is affected
- Homeowners (including those in cooperatives, community land trusts, or mobile home parks) — Homeowners who live in their property as their main home may receive a reduction in state-level property taxes, helping them stay in their homes despite rising assessments or fixed incomes.
- County governments (especially county assessors and treasurers) — Counties will receive state funding to help cover costs of processing applications and verifying eligibility for the exemption.
- Cooperatives and community land trusts — Cooperative housing associations and mobile home park cooperatives must adjust fees or payments to members based on the exemption amount, and may receive unused exemption funds.
- People with life estates or shared ownership arrangements — Individuals with life estates (e.g., elderly residents living in a home but not on the deed) may benefit directly or through reduced payments to remaindermen.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The exemption protects fixed-income homeowners (especially seniors and disabled residents) from displacement due to rising assessments—particularly valuable in counties where home values have outpaced income growth—by reducing state tax liability by at least $100,000 or 60% of county median value, whichever is greater.
HousingPeopleRef: Sec. 2(1)(a), Sec. 2(6)(a)(iii)Explicit inclusion of cooperatives, community land trusts, and mobile home parks ensures low- and moderate-income residents in alternative housing models receive direct tax relief, with mandatory redistribution of savings to members—addressing a long-standing gap in property tax equity.
HousingPeopleRef: Sec. 2(6)(d)(i), Sec. 2(6)(d)(ii)Temporary unoccupancy provisions for nursing home residents—provided the home remains occupied by a spouse or is rented to cover care costs—allow aging residents to retain the exemption while accessing long-term care, supporting aging-in-place policies and reducing institutionalization pressure.
HealthcarePeopleRef: Sec. 2(6)(a)(iii)Counties receive $5–$10 per application to offset administrative costs, reducing strain on local assessors’ offices and supporting consistent implementation across counties—though this is a flat rate that may undercompensate high-volume or rural counties.
Local GovernmentPeopleRef: Sec. 3(2)(a), Sec. 3(2)(b)(i)The requirement that the residence be on a parcel with fewer than five units (or in a cooperative) targets the exemption toward single-family and small-scale multifamily homeowners—groups most vulnerable to displacement—while excluding large landlords and speculative investors.
HousingPeopleRef: Sec. 2(6)(a)(ii), Sec. 2(6)(b)(ii)
Potential Concerns (5)
The exemption applies only to the *state* portion of property taxes, not local levies (e.g., schools, fire districts), meaning most homeowners will see only a modest reduction in total property tax bills—typically 10–20%—while local services remain fully funded, potentially increasing pressure on local governments to maintain service levels without corresponding revenue relief.
Local GovernmentRef: Sec. 2(1)(a)The exemption is capped at the amount of state property tax owed, meaning high-value homes (e.g., assessed at $2M+) receive no additional benefit beyond eliminating the state portion—often $1,500–$3,000—while lower-valued homes may see a larger relative reduction, but the $100,000 flat threshold disproportionately benefits middle- and upper-middle-income homeowners in counties with median values below $600,000.
FinancialPeopleRef: Sec. 2(1)(a), Sec. 2(1)(c)The state may reduce the exemption percentage (e.g., below 60%) if the levy exceeds statutory caps, creating uncertainty and potential retroactive reduction of benefits—especially in high-appreciation counties—undermining predictability for budgeting and long-term housing stability.
Local GovernmentPeopleRef: Sec. 2(1)(b), Sec. 2(1)(b)(ii)Cooperatives and life-estate arrangements require complex internal redistribution of tax savings, and the bill places administrative burden on these entities to pass savings to residents—yet lacks enforcement mechanisms, risking that savings are retained by boards or remaindermen rather than benefiting actual residents.
HousingPeopleRef: Sec. 2(6)(d)(i), Sec. 2(6)(e)(i)Verification of single-residence claims is described as “as resources allow” and is not a prerequisite for approval, increasing risk of fraud and under-enforcement—particularly in high-appreciation areas where multiple-property owners may exploit the exemption without consequence.
Public SafetyLean peopleRef: Sec. 2(3)(d), Sec. 2(7)
Who Is Most Affected
Homeowners in counties with median values between $166,667 and $166,667+ (i.e., where 60% of median > $100,000) will see meaningful tax relief—especially seniors on fixed incomes, disabled residents, and those in aging-in-place communities. However, high-wealth homeowners in high-appreciation counties may receive less relative benefit than lower-valued homes in moderate markets.
Cooperatives (including CLTs and mobile home parks) must restructure internal payments to pass savings to residents—creating administrative burden but also a legal right to redistribution. Unused exemption amounts may flow back to the cooperative, potentially strengthening their financial base if member units are undervalued.
Counties receive modest per-application funding ($5–$10), but must absorb verification, appeals, and enforcement costs not fully reimbursed—especially in high-appreciation counties where application volume may surge. The flat rate may undercompensate rural or high-demand counties.
Remaindermen (e.g., children holding future interest in a life estate) are required to reduce payments or refund tax savings to life tenants—potentially increasing their own effective housing costs if they cannot recoup the exemption amount through other means.
Renters in cooperative or life-estate housing benefit only if the cooperative or remainderman passes savings to them—no direct right to the exemption. In practice, savings may be retained by the entity, limiting direct benefit to renters.