Property taxes are the theme for an upcoming Senate Ways & Means hearing. Two of the proposals on the agenda would establish a state property tax exemption based on the first $250,000 of a primary residence (SB 5387, SB 5495) and establish a credit for renters for the portion of rent attributable to property tax.

SB 5387 and SJR 8204, sponsored by Sen. Lynda Wilson (R–Vancouver), would change the state constitution to provide a homestead exemption for the first $250,000 of assessed value of residential property beginning with taxes levied for collection in 2025. The amount of the exemption would grow each year based on the percent increase in the state levy. Renters would also be able to apply to the Department of Revenue for a credit for two percent of rent for the portion of rent attributable to property taxes paid on the rental.

SB 5495 and SJR 8206, sponsored by Sen. Patty Kuderer (D–Bellevue), would provide a process to apply for a refund of property taxes equivalent to state property taxes due on the first $250,000 of assessed value of a primary residence beginning in 2027. The amount of the exemption would grow each year based on the increase between state levies from the prior two years. The state constitution would be amended to eliminate the uniformity provision for property tax in Article VII Section 1 and provide authority for the exemption. Renters would also be able to apply to the Department of Revenue for a credit for two percent of rent equivalent to property taxes.

Date to remember

The Senate Ways & Means hearing is scheduled for Tuesday, January 24 at 4 pm.