Teeing up options to provide tax relief for homeowners and renters

Two new bills and a constitutional amendment were introduced this week as part of a larger discussion about tax relief for homeowners and renters to increase housing affordability and address the state’s regressive tax burden. The proposals sponsored by Sen. June Robinson (D-Everett) would create a new property tax exemption for the first $100,000 or 60% of the county median home value for the state property tax levy for a homeowner’s primary residence beginning in 2028 (SB 5770). The exemption would also require a constitutional amendment to take effect (SJR 8203). Homeowners would need to apply to the Department of Revenue for the exemption for the following year by certifying that the property is their primary residence. The effect would be to shift some of the state’s property tax burden to property owners with multiple residences and commercial properties.

A second proposal seeks to provide similar tax relief to renters by increasing the working families tax credit by $300 for renters who had a primary residence for at least 183 days in Washington (SB 5771). The working families tax credit currently provides a sales tax credit of up to $1290 refunded to individuals who qualify for the federal earned income tax credit.

The bills are not yet scheduled for hearings but are expected to be part of a larger conversation on the state’s funding structure, affordable housing, and the state budget.