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Evergreen Ledger

SSB 5770

In Committee

Senate

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?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 26, 2025
Last Action: January 12, 2026
Status: S Rules X
Companion Bill:
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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill creates a new property tax exemption for Washington residents’ primary homes to help prevent displacement due to rising taxes, especially for people on fixed incomes. It reduces only the *state* portion of property taxes on a homeowner’s main residence, starting in 2028, and applies to single-family homes, cooperatives, and certain other housing types.

  • Creates a new primary residence property tax exemption that reduces the *state* portion of property taxes (but not local taxes) on a homeowner’s main residence.
  • The exemption amount is the greater of $100,000 or 60% of the county median residential assessed value, starting in 2028.
  • Homeowners must apply annually (by April 1) to the state Department of Revenue, providing personal and property details; the exemption applies only to one primary residence per person.
  • The exemption can be transferred to a new home if the original is sold or temporarily unoccupied due to long-term care, and applies to certain cooperative and life-estate arrangements.
  • Counties receive state reimbursement for administrative costs, and the Department of Revenue may audit claims and cancel exemptions if eligibility rules are not met.
  • Requires public outreach and multilingual materials about the exemption, and updates the county board of equalization’s role to review exemption claims and appeals.

Who is affected

  • Homeowners with primary residences — Homeowners who live in their property as their main home may receive a reduction in their state property tax, helping them stay in their homes despite rising assessments.
  • Members of cooperative housing associations — Cooperative housing members (e.g., in co-ops, mobile home parks, or manufactured housing co-ops) may receive tax savings passed through from their cooperative, potentially lowering monthly fees or receiving direct payments.
  • County government staff (assessors, treasurers) — County assessors and treasurers will need to process applications, verify eligibility, and manage appeals related to the new exemption, with state reimbursement for associated costs.
  • Residents on fixed incomes — Individuals on fixed incomes (e.g., seniors, people with disabilities) may benefit most, as the exemption helps protect against displacement due to rising property taxes.
Effective: 2026-01-01Fiscal impact: The state will create an administration account to reimburse counties $5 per application processed annually (starting in 2027), with $10 per application for 2026–2027 estimates. The state legislature must appropriate funds for these reimbursements. The exemption reduces state property tax revenue, but the impact depends on how many people claim it.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 9:17 PM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • The exemption directly reduces state property tax liability on primary residences—especially beneficial for seniors and others on fixed incomes who face rising assessments despite stagnant income, helping them avoid displacement and stay in their communities.

    HousingPeopleRef: Sec. 2(1)(a), (6)(a)

  • The requirement that cooperatives and life-estate arrangements pass full tax savings to members ensures that low- and moderate-income residents in non-traditional housing (e.g., mobile home co-ops, senior life estates) directly benefit—potentially lowering monthly fees or receiving cash payments.

    HousingPeopleRef: Sec. 2(6)(d)(i), (ii), (e)(i), (e)(ii)

  • Mandated multilingual outreach and county-level verification (with audit authority) aim to reduce fraud and increase equitable access—though imperfect, these provisions improve transparency and reduce barriers for non-English speakers and technologically isolated residents.

    Public SafetyPeopleRef: Sec. 2(5), (3)(c), (7)(a)

  • State reimbursement of $5 per application (rising to $10 in early years) helps offset county administrative costs—though likely underfunded relative to actual workload, it acknowledges counties' role and prevents full cost-shifting to local budgets.

    Local GovernmentPeopleRef: Sec. 3(2)(a), (b)(i)

  • The exemption can be transferred to a new home if the original is sold or temporarily unoccupied due to long-term care—providing flexibility for aging residents who need to move for health reasons but wish to retain tax relief in their new residence.

    HousingPeopleRef: Sec. 2(1)(a), (6)(a)(iii)
Potential Concerns (5)

  • The exemption reduces state property tax revenue, which may lead to reduced funding for statewide services (e.g., education, transportation, public health) over time—especially if local governments compensate by increasing local levies or cutting services. Although the bill only exempts the *state* portion of property tax, counties may shift costs to residents through higher local rates or service reductions to offset lost state reimbursement efficiency.

    FinancialPeopleRef: Sec. 2(1)(a)

  • The requirement to file annually with personal data (including SSN and parcel number) and potential audit creates privacy and administrative burdens—particularly for vulnerable populations (e.g., seniors, people with disabilities) who may lack digital access or assistance to navigate the application process, risking denial of benefit due to procedural errors rather than ineligibility.

    Rights & LibertiesLean peopleRef: Sec. 2(3)(a), (d), (f)

  • The bill imposes new fiduciary and financial obligations on cooperatives and life-estate remaindermen to pass tax savings to members or tenants—potentially creating legal liability if they fail to comply, and increasing administrative complexity for small housing providers and co-op boards that lack legal or accounting staff.

    Business & EmploymentPeopleRef: Sec. 2(6)(d)(i), (ii), (e)(i), (e)(ii)

  • The restriction that the residence must be on a parcel with fewer than five units excludes many moderate-density housing types (e.g., townhomes, small apartment buildings), limiting access to the exemption for renters in converted co-ops or residents in duplexes/triplexes—despite their shared vulnerability to displacement.

    HousingLean peopleRef: Sec. 2(6)(b)(ii)

  • The exemption is capped at the amount of state property tax owed—meaning low-assessed-value homes (e.g., older homes in lower-value areas) or homes with low state tax liability may receive minimal or no benefit, even if their *total* property tax burden is high due to local levies.

    FinancialLean peopleRef: Sec. 2(1)(a), (c)

Who Is Most Affected

Homeowners with primary residencesPositive Impact

Homeowners with primary residences—especially seniors and fixed-income households—will likely benefit most, as the exemption directly reduces state property tax liability and helps prevent displacement. However, benefits are larger for higher-assessed-value homes, so higher-income homeowners may gain more in absolute dollars.

Members of cooperative housing associationsPositive Impact

Cooperative housing members (e.g., in mobile home parks, manufactured housing co-ops) stand to benefit significantly, as the bill mandates that cooperatives pass full tax savings to members—potentially lowering monthly fees or providing direct payments. This is especially impactful for low-income residents in non-traditional housing.

County government staff (assessors, treasurers)Mixed Impact

County assessors and treasurers will face increased administrative burdens (application processing, verification, appeals), though they receive state reimbursement. However, the $5 per application reimbursement is likely insufficient to cover full costs, especially in high-application-volume counties, straining local budgets.

Residents on fixed incomesPositive Impact

Residents on fixed incomes (e.g., seniors, people with disabilities) are the intended primary beneficiaries, as the exemption is designed to protect against displacement due to rising taxes. However, those in lower-assessed-value homes or with limited access to digital tools may not fully benefit due to procedural barriers.

Local taxing districtsNegative Impact

Local taxing districts (school districts, fire districts, etc.) may face indirect pressure to increase local property tax levies to maintain revenue lost to the state exemption—potentially shifting burden to renters and low-income homeowners, even though the exemption only targets the *state* portion.