Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Finance Committee

HJR 4208

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Amends the Washington State Constitution to grant the Legislature the authority to provide a homestead exemption from property taxes levied for state purposes on up to $50,000 of residential real property valuation.

Background:

All property is subject to a tax each year based on 100 percent of its true and fair market value, unless a specific exemption is provided by law.

Article VII, Section 1 of the Washington Constitution (Constitution) requires all taxes on real estate to be uniform within a taxing district. Additionally, the Legislature is permitted to exempt property in its entirety from property tax with the adoption of general law. However, constitutional authority is required to exempt a portion of property value from property tax.

Constitutional amendments require a 60 percent majority approval by the Legislature to be placed on the ballot before seeking a simple majority approval from the voters.

Summary of Bill:

The bill amends the Constitution to grant the Legislature the authority to provide a homestead exemption from property taxes levied for state purposes on up to $50,000 of residential real property valuation. The Legislature may place restrictions and conditions on the homestead exemption as it deems proper.