This bill amends existing property tax and tax administration laws (including RCW 84.36.381, 84.36.383, 84.38.020, 84.56.020, 84.52.065, and others referenced) to expand and clarify property tax exemptions for certain retired persons and related household members. It revises definitions (for example, residence, principal place of residence, accessory dwelling unit, combined disposable income, cotenant, and standard deduction), establishes income‑based exemption formulas tied to three income threshold categories, and sets specific exemption amounts and percentage-of-valuation caps for those income bands. The bill also sets eligibility rules (age/disability/veteran and surviving spouse/partner conditions), rules for calculating combined disposable income (including certain medical and care expenses and specified veterans’ benefits), allows assessors to require income documentation by May 31 following an application year, and contains special valuation rules for persons qualifying under the highest income threshold. Some parts of the disposable income definition and certain numerical details are not fully present in the provided facts. The bill makes several procedural and collection changes for county treasurers and taxpayers. It requires county treasurers to complete the tax roll before accepting payments or issuing receipts and directs tax statements to be distributed by March 15 subject to specified preconditions. It fixes on-time payment dates (first-half due April 30; second-half due October 31), provides a split-payment rule, and treats automated or mail payments received within three business days of those due dates as not delinquent. It changes interest and penalty rules: interest is computed monthly from delinquency and, beginning January 1, 2023, is 9% per annum for residential parcels of four or fewer units and 12% for other property; penalties were suspended for 2022 and, beginning 2023, are assessed at 3% on June 1 and an additional 8% on December 1 for certain property types. The treasurer may offer electronic billing/payment, accept prepayments, provide payment agreements, and in limited circumstances waive outstanding interest and penalties on foreclosed principal residences if the owner is income-qualified as verified by the assessor. The bill also addresses the state school levy and a farmer exemption. It specifies that the state must levy $3.60 per $1,000 of assessed value for support of common schools (subject to RCW 84.55.010 limits), sets a $2.06021 per $1,000 rate for taxes levied for collection in 2027, and applies chapter 84.55 limits beginning with 2028 collections. It exempts machinery and equipment owned by a farmer from state purposes property taxes when used exclusively to grow and produce agricultural products for the calendar year, and requires filing a claim with the county assessor using forms prescribed by the department. The provided facts do not include some referenced amendments and new sections noted in the bill header, and several numerical or definitional details referenced in the bill are incomplete in the extracted material.

Qualifying retired homeowners, including many veterans and some surviving spouses, would likely see lower property tax bills because the bill raises exemption amounts and changes how much of a residence’s value can be excluded based on combined disposable income and county median income thresholds that phase up through 2027. People with the lowest incomes (income threshold 3) could be relieved of excess property taxes, the state school levy, and certain voter‑approved local portions, while standard deductions and an expanded list of deductible health and rental items reduce calculated income; in practice this means more seniors and eligible veterans may pay little or no property tax on their homes, but local governments and school funding could see reduced collections and need to absorb or replace that revenue. County officials and taxpayers face operational changes: assessors can require income documentation by May 31 following an application, county treasurers cannot accept payments until the tax roll is complete and must mail tax statements by March 15, taxes remain due April 30 and October 31 with specified split‑payment and delinquency rules, and treasurers get new authority for electronic billing, payment plans, and limited waivers of interest and penalties for income‑qualified owners before foreclosure. Farmers using machinery only for production may avoid state property tax on that equipment, but some details remain unclear from the provided text—most notably the full list of items counted in disposable income, certain procedural rules referenced in other amended sections, and the precise operation of income‑threshold 3 valuation rules—so local implementation questions and revenue impacts will depend on those missing specifics.