Washington SB 5770: Providing housing safety, security, and protection by creating the primary residence property tax exemption.

Bill Text

AN ACT Relating to providing housing safety, security, and 1
protection by creating the primary residence property tax exemption; 2
amending RCW 84.48.010; adding new sections to chapter 84.36 RCW; 3
creating new sections; and providing a contingent effective date.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that housing 6
security is important to all Washingtonians.7
(2) The legislature further finds that homeownership is the main 8
mechanism for creating wealth for the middle class and working 9
families and passing it on generationally.10
(3) The legislature further finds that one's home is not simply 11
an asset to build wealth, but also a critical tool for maintaining 12
one's security and well-being, and Washington's tax code makes no 13
distinction between one's home and other real property subject to 14
property taxation, contributing to loss of property and displacement, 15
particularly for those on fixed incomes.16
(4) The legislature further finds that many Washingtonians are 17
vulnerable to foreclosure by mortgage holders and other secured 18
creditors, despite the homestead exemption limited in bankruptcy 19
statute, RCW 6.13.030, which is a tool to protect heads of households 20
S-1936.2
SUBSTITUTE SENATE BILL 5770
State of Washington 69th Legislature 2025 Regular Session
By Senate Ways & Means (originally sponsored by Senators Robinson,
Cleveland, Conway, Cortes, Dhingra, Frame, Hasegawa, Kauffman,
Krishnadasan, Liias, Nobles, Pedersen, Riccelli, Saldaña, Slatter,
Stanford, Trudeau, Valdez, and C. Wilson)
READ FIRST TIME 02/28/25.
p. 1 SSB 5770

from having their homes confiscated and sold to satisfy debts from 1
unsecured creditors.2
(5) Therefore, it is the intent of the legislature to prevent 3
more displacement and loss of real property by exempting a portion of 4
tax of one's principal place of residence to achieve the goal of 5
making sure individuals can reside, raise their families, age in 6
place, and stay in their communities, without fear of displacement 7
due to crises or increase in land and home value assessment. The 8
legislature intends to create a means of providing equity in the tax 9
code by treating one's primary home, including community land trusts 10
and cooperative ownership, differently than other property across 11
Washington.12
NEW SECTION. Sec. 2. A new section is added to chapter 84.36 13
RCW to read as follows:14
(1)(a) Subject to the conditions in this section, a portion of 15
the assessed value of a residence is exempt from the state levy but 16
not from property taxes levied by any local taxing district. Subject 17
to the adjustments and limitations in this subsection (1), and for 18
taxes levied for collection in 2028 and thereafter, the primary 19
residence property tax exemption from the state levy is equal to the 20
greater of $100,000 assessed valuation or 60 percent of the county 21
median residential assessed value for the most recent year the 22
department collected data by county.23
(b)(i) The department shall annually publish the county median 24
residential assessed value rounded to the nearest $1,000 by August 25
1st for the most recent year for which the department collected data 26
by county; and27
(ii) The department shall adjust the percentage of county median 28
residential assessed value exempted under (a) of this subsection if 29
the state levy is expected to exceed the statutory maximum provided 30
in RCW 84.52.065 to prevent a loss in funding for that year.31
(c) The amount of the primary residence property tax exemption 32
for a residence may not result in a tax reduction that exceeds the 33
amount of state property taxes that would otherwise be levied on that 34
residence.35
(2) The primary residence property tax exemption is in addition 36
to, and applied after, the exemption provided in RCW 84.36.379 37
through 84.36.389.38
p. 2 SSB 5770

(3)(a)(i) The primary residence property tax exemption must be 1
claimed by filing an application with the department by April 1st of 2
the calendar year prior to the first year for which the exemption 3
will be received. The application shall be in a form and manner 4
determined by the department.5
(ii) A claimant filing an application with the department for a 6
primary residence property tax exemption must include the claimant's 7
address, social security number, parcel number, and any other 8
information the department deems necessary as part of the 9
application.10
(iii) A claimant filing an application with the department for a 11
primary residence property tax exemption must also include the social 12
security number of any spouse or other individual listed on the deed, 13
deed of trust, mortgage, or other document indicating legal or 14
beneficial ownership of the property.15
(b) The department shall provide the means for claimants to claim 16
the primary residence property tax exemption for their residence 17
online as prescri