House Finance committee hears homestead exemption proposal to exempt a portion of primary residences from state property tax

The Washington State House Finance Committee on March 25 held a public hearing on House Bill 2024 and House Joint Resolution 4204, a pair of measures that would allow the Legislature to exempt a portion of a homeowner’s principal residence from state property taxation and establish the program’s implementing rules if voters approve a constitutional amendment.

Tracy Taylor, staff to the committee, told members that HJR 4204 would amend the state constitution to permit the Legislature to “provide a property tax exemption for the principal place of residence,” and that HB 2024 would implement the exemption if voters approve the amendment. Taylor said the exemption amount in the draft bill is the greater of $100,000 or 60% of the county median home value as published by the Department of Revenue, rounded to the nearest $1,000. She also said the Department of Revenue must reduce the exempted percentage if state school levy parts 1 or 2 are expected to exceed the combined statutory maximum of $3.60 per $1,000 of market value.

The bill text would limit the exemption to a single residential parcel per claimant, require the claimant to occupy the residence at least 184 days in the calendar year for…