H-1981.1

HOUSE BILL 1841

ByRepresentatives Walen, Springer, Goodman, Shewmake, Wylie, Slatter, Duerr, Riccelli, and Ormsby

AN ACT Relating to incentivizing rental of accessory dwelling units to low-income households; amending RCW 84.36.400; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 84.36.400 and 2020 c 204 s 1 are each amended to read as follows:

((Any physical))(1) Physical improvements to single-family dwellings upon real property((, including constructing an))are exempt from taxation as follows:

(b) An accessory dwelling unit, whether attached to or within the single-family dwelling or as a detached unit on the same real property, ((shall be))to the extent that the improvement represents 30 percent or less of the value of the original structure, is exempt from taxation for ((the)):

(i) The three assessment years subsequent to the completion of the improvement ((to the extent that the improvement represents thirty percent or less of the value of the original structure)); and

(ii) The duration of time that the accessory dwelling unit is rented to a low-income household as defined in RCW 36.70A.030 that is verified by the city or the county where the real property resides.

((A))(2) If the exemption is being sought for a planned improvement, a taxpayer desiring to obtain the exemption granted by this section must file notice of his or her intention to construct the improvement prior to the improvement being made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor: PROVIDED, That this exemption cannot be claimed more than once in a five-year period.

The department of revenue shall promulgate such rules and regulations as are necessary and convenient to properly administer the provisions of this section, including necessary verification and monitoring requirements, by December 31, 2022.

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