House committee hears House Bill 13 to add five optional municipal property tax exemptions; action set aside

The House Community and Regional Affairs Committee on April 22 heard House Bill 13, a proposal to add five optional municipal property tax exemptions, and set the bill aside while giving members until 3 p.m. Wednesday, April 23, to file amendments.

House staff member Kyle Johansen, representing sponsor Rep. Gray, summarized the bill, saying, "House Bill 13 contains 5 completely optional municipal tax exemptions. 1 for owners that convert from short term rental to long term rental, 1 up to a 10 year exemption for certain mobile home park construction renovation projects for properties rented to low income families, for people who reside in owner occupied homes, and, owner occupied first time homebuyers." Johansen also noted the committee had received a letter raising concerns about voter approval of exemptions.

The committee sought legal clarification about whether voters could independently adopt exemptions without a municipal ordinance. Andrew Dunmier of Ledge Legal told the committee, "29 45 0 5 0 a grants the voters of a municipality the ability to approve a residential exemption, that cannot exceed an assessed value of $75,000." He explained that passage of House Bill 13 would add subsections to that statute permitting a governing body to adopt the listed exemptions without submitting them to a municipal vote.

Members discussed practical effects and limits. Representative Holland asked whether the bill would let local governments exceed the current $75,000 assessed-value cap; Dunmier and staff answered that the $75,000 limit applies only to the existing voter-approved residential exemption and would not automatically constrain the new exemptions added by the bill. Representative Prox raised concerns about tenant protections in the mobile-home-park exemption, asking whether a tenant whose income later rises and therefore no longer met the exemption criteria could be removed. Johansen and Co-Chair Representative Donna Mears said landlord-tenant law and local program rules would govern such situations and that municipalities adopting an exemption could build sideboards into local ordinances and leases.

The committee opened and then closed public testimony with no speakers. With no further questions, the committee chair announced, "I'm gonna go ahead and set the bill aside, and we're setting an amendment deadline for tomorrow afternoon at 3. That's Wednesday, April 23." The committee's next scheduled business includes a presentation on power cost equalization and further consideration of housing-related bills.

The committee did not vote on the bill; it was set aside for further consideration and amendments.