SB 6162 — Concerning property tax reform.

ENGROSSEDS-3672.4 SUBSTITUTE SENATE BILL 6162 State of Washington 69th Legislature 2026 Regular Session By Senate Ways & Means (originally sponsored by Senators Krishnadasan, Alvarado, Bateman, Chapman, Christian, Conway, Cortes, Dhingra, Frame, Hunt, Liias, Lovelett, Lovick, Nobles, Orwall, Pedersen, Riccelli, Robinson, Saldaña, Salomon, Shewmake, Slatter, Stanford, Valdez, and C.

Wilson)Wilson READRead FIRSTfirst TIMEtime 02/09/26.01/15/26.

Referred to Committee on Ways & Means.

1 ESSBSB 6162 residence may transfer his or her exemption status to a replacement residence, but no claimant may receive an exemption on more than one residence in any year.

2 ESSBSB 6162 domestic partner is 57 years of age or older and otherwise meets the requirements of this section;

3 ESSBSB 6162 threshold 2 but greater than income threshold 1 is exempt from all regular property taxes on the greater of (($50,000)) $70,000 or ((35)) 45 percent of the valuation of his or her residence, but not to exceed (($70,000)) $200,000 of the valuation of his or her residence;

or (ii) A person who otherwise qualifies under this section and has a combined disposable income equal to or less than income threshold 1 is exempt from all regular property taxes on the greater of (($60,000)) $80,000 or ((60)) 80 percent of the valuation of his or her residence, but not to exceed $500,000 of the valuation of his or her residence;

(1) "Accessory dwelling unit" means a separate, autonomous residential dwelling unit that provides complete independent living p.

4 ESSBSB 6162 (1) "Accessory dwelling unit" means a separate, autonomous residential dwelling unit that provides complete independent living facilities for one or more persons and includes permanent provisions for living, sleeping, eating, cooking, and sanitation.

(2) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the residence for the assessment year, less the standard deduction amount or amounts paid or, for purposes of (n) of this subsection (2), received,received by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for the items in this subsection (2).

(i) For the purposes of this subsection (2)(n), "rental amount" has the same meaning as in RCW 59.18.030.

5 ESSBSB 6162 (ii)(i) For the purposes of this subsection (2)(n), amounts"rental receivedamount" fromhas short-termthe rentals,same meaning as defined in RCW 64.37.010,59.18.030. are not included.

(ii) For the purposes of this subsection (2)(n), amounts received from short-term rentals, as defined in RCW 64.37.010, are not included.

(e) Military pay and benefits other than ((attendant)):attendant-care and medical-aid payments;

(i) Attendant-care and medical-aid payments;

and (ii) Combat-related special compensation under 10 U.S.C.

Sec.

1413a;

and((and)) p.

6 ESSBSB 6162 (iv) Dependency and indemnity compensation, as defined in Title 38, part 3, section 3.5 of the Code of Federal Regulations, as of January 1, 2008;

and (v) Combat-related special compensation under 10 U.S.C.

Sec.

1413a;

and (d) For taxes levied for collection in calendar years 2027 and thereafter, a combined disposable income equal to the greater of "income threshold 1" for the previous year or 60 percent of the county median household income, adjusted every three years beginning August 1, 2026,2023, as provided in RCW 84.36.385(8).

and (d) For taxes levied for collection in calendar years 2027 and thereafter, a combined disposable income equal to the greater of "income threshold 2" for the previous year or 70 percent of the countyp. median household income, adjusted every three years beginning August 1, 2026, as provided in RCW 84.36.385(8).

p.7 SB 6162 county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385(8).

7 ESSB 6162 (10) "Income threshold 3" means:

and (d) For taxes levied for collection in calendar years 2027 and thereafter, a combined disposable income equal to the greater of "income threshold 3" for the previous year or 80 percent of the county median household income, adjusted every three years beginning August 1, 2026,2023, as provided in RCW 84.36.385(8).

The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his orp. her share represents the specific unit or portion of such structure in which he or she resides.

The8 termSB also6162 includesor aher p.share represents the specific unit or portion of such structure in which he or she resides.

8The ESSBterm 6162also includes a single-family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080 and 84.04.090, such a residence is deemed real property.

and (c) for taxes levied for collection in calendar year 2027 and thereafter, a combined disposable income equal to the greater of the income threshold for the previous year, or 90 percent of the county median household income, adjusted every three years beginning August 1, ((2023))2023, 2026, as provided in RCW 84.36.385(8).

Beginning with the adjustment made by August 1, ((2023))2023, 2026, as provided in RCW 84.36.385(8), if the income threshold in a county is not adjusted based on percentage of county median income as provided in this p.

9 ESSBSB 6162 income threshold in a county is not adjusted based on percentage of county median income as provided in this subsection, then the income threshold must be adjusted based on the growth of the consumer price index for all urban consumers (CPI-U) for the prior ((twelve)) 12-month12- month period as published by the United States bureau of labor statistics.

All real and personal property taxes and assessments made payable by the provisions of this title are due and payable to the county treasurer on or before the 30th day of April and,p. except as provided in this section, are delinquent after that date.

p.10 SB 6162 and, except as provided in this section, are delinquent after that date.

10 ESSB 6162 Tax statements.

Delinquent tax payments for current year:

First-half taxes paid after April 30th.

11 ESSBSB 6162 (4)(a)Delinquent When the total amount of tax orpayments special assessments on any lot, block or tract of real property, personal property, or on any mobile home payable by one person is $50 or more, and if one-half of such tax is paid after the 30th day of April but before the 31st day of October, together with the applicable interest and penalty on the full amount of tax payable for thatcurrent year,year: the remainder of such tax is due and payable on or before the following 31st day of October and is delinquent after that date.