This bill creates a new "primary residence property tax exemption" by adding sections to chapter 84.36 RCW. For taxes levied for collection in 2028 and thereafter, the exemption removes from the state property tax levy the greater of $100,000 of assessed value or 60% of the county median residential assessed value (based on the most recent county data), subject to adjustments so the state levy does not exceed the statutory maximum. The exemption applies only to the state levy (not to local taxing district levies), is applied after existing exemptions in RCW 84.36.379–84.36.389, and includes rules for life estates, long leases, cooperative ownership, and ownership by spouses, domestic partners, or cotenants. The bill defines "residence" and "principal place of residence" (occupied at least 184 days in a calendar year) and adopts existing definitions for manufactured and mobile homes by reference to RCW 59.20.030. The act establishes procedures and administration: claimants must apply to the department (application due April 1 of the year before the exemption begins), the department must annually publish county median residential assessed values and provide claimant lists to county assessors by August 1, and assessors must verify qualifications, cancel improper exemptions, and may be audited by the department. If an assessor finds an exemption was wrongly granted for prior years, the county treasurer must collect the state taxes that would have been due (not to exceed six prior years) with interest but without penalties; those amounts become a lien and are due within 60 days of billing. The bill creates a state "primary residence property tax exemption administration account" to distribute funds to counties to offset administration costs (normally $5 per application processed, with higher initial estimates for 2026–27), prescribes certification and distribution dates, requires counties to hold dedicated assessor administration funds, and authorizes rules and forms for implementation. The county board of equalization process is amended to require annual meetings (July 15 or within 14 days of certification), to allow review of exemption claims (including this exemption), and to set notice and recordkeeping rules; the Department of Revenue may begin administrative work on August 1, 2025. Legally, the bill creates a new substantive tax exemption, adds administrative and procedural requirements for state and county officials, amends RCW 84.48.010 regarding board of equalization procedures, and authorizes retroactive collection (procedural remedy) with interest for erroneous past exemptions. The act’s effective date is contingent on voter approval of a proposed constitutional amendment (SJR No. 8203): except for section 8, the act takes effect January 1, 2026 if that amendment is approved, and the exemption applies to taxes levied for collection in 2028 and thereafter; if the amendment is not approved the act is void. The extracts repeatedly refer to "the department" without naming it in all places, section 2 and parts of some subsections are not included here, and the amendment to RCW 84.48.010 is not shown in full in the provided text.

If enacted and the related constitutional amendment is approved by voters, homeowners who occupy a property as their principal residence could see a reduction in the portion of their property tax bill that goes to the state beginning with taxes collected in 2028; the exempted assessed value would be whichever is greater: $100,000 or 60% of the county median residential assessed value, with limits so the exemption can’t exceed the state taxes otherwise due and local taxes are unchanged. Homeowners must apply to the unnamed “department” by April 1 before the first year of receiving the exemption, cooperatives must pass any member savings through, and people who received the exemption in error can be billed for up to six prior years with interest, creating a real risk of retroactive charges if eligibility is later revoked. Counties and county officials bear most of the new administrative work and some costs but will receive state-directed payments to help cover them: a state account will fund annual distributions to counties (generally $5 per application processed, with higher initial estimates for 2026–27), counties must hold those funds separately and allow only the county assessor to spend them for administering the program, and assessors will handle verification, cancellations, reporting, and coordination with county boards of equalization (which must meet on a set schedule and handle appeals). The Department may audit county administration, adopt rules, and certify distribution amounts, the state treasurer will make the distributions beginning August 1, 2026, and the Department of Revenue may begin preparatory work on August 1, 2025; however, the bill text leaves unclear which specific state department is named in some places and references to key sections (including the full eligibility rules) are missing in the provided facts.