This bill amends RCW 84.26.070 to change special valuation rules for eligible historic property. Under the amendment a county assessor must place a special valuation on qualifying property for 10 consecutive assessment years following the calendar year in which the owner applies, with entitlement determined as of January 1 of the year. If a property loses qualification during a year, it receives the special valuation for the portion of that year it remained qualified or while the owner acted in good faith. At the conclusion of the special valuation period the costs are treated as new construction. The bill allows owners of qualifying historic property located in cities under 20,000 population to apply for two separate seven-year extensions of the special valuation if the property continues to meet the criteria in RCW 84.26.030. Extension requests must be filed by the owner on forms prescribed by the Department of Revenue and supplied by the county assessor at least 90 days before the special valuation expires; local review boards must review extension requests and may approve or deny them. No extensions may be provided on or after January 1, 2057. The Joint Legislative Audit and Review Committee may use state-collected data in reviews, and the act includes a tax preference performance statement categorizing the preference under RCW 82.32.808(2)(e) and stating the legislature’s objective to promote revitalization of historic properties and an intent to extend the preference’s expiration date if the number of taxpayers claiming it increases. Affected parties identified in the text include county assessors, the Department of Revenue, local review boards, JLARC, the legislature, taxpayers and owners of eligible historic property, and cities under 20,000 population. The amendment also references criteria in RCW 84.26.030 and amends uncodified sections from 2020 c 91; the chunk provided does not include those criteria, includes an incomplete citation to a 2026 chapter, and shows strike/parenthetical formatting that leaves some changes unclear. The bill was read for the first time on 01/28/26 and referred to the Committee on Finance.

Owners of qualifying historic properties can expect a period of reduced assessment pressure after completing eligible work: the bill makes the reduced valuation apply for ten years after application and, for properties in cities under 20,000 people that continue to meet the eligibility criteria, owners can seek two additional seven-year extensions that local review boards may approve or deny. Practically, that means owners who succeed in qualifying can likely delay higher property tax bills tied to rehabilitation for a long time (potentially up to 24 years total), they must apply for extensions at least 90 days before each expiration, and if a property loses qualification midyear the owner generally keeps the reduced valuation for the time it was qualified; when the special valuation period ends the rehabilitation costs are treated as new construction and taxable accordingly. County assessors must apply the special valuation and supply forms prescribed by the Department of Revenue, local review boards will decide extension requests, and the Joint Legislative Audit and Review Committee can review uptake using state data; the legislature also signaled it may extend the program if participation grows. Important details are missing here: the specific eligibility criteria in RCW 84.26.030 and a complete 2026 citation are not included, so how many properties will qualify and the finer administrative rules are unclear.