SENATE BILL REPORT
SJR 8203
As Reported by Senate Committee On:
Ways & Means, February 27, 2025
Brief Description: Amending the Constitution to allow for a property tax exemption for a principal place of residence.
Sponsors: Senators Robinson, Cleveland, Conway, Cortes, Dhingra, Frame, Hasegawa, Kauffman, Krishnadasan, Liias, Nobles, Pedersen, Riccelli, Saldaña, Salomon, Shewmake, Slatter, Stanford, Trudeau and Wilson, C..
Brief History:
Committee Activity: Ways & Means: 2/25/25, 2/27/25 [DP, DNP, w/oRec].
Brief Summary of Bill
  • Amends the Washington State Constitution to allow for a property tax exemption for a principal place of residence.
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: Do pass.
Signed by Senators Robinson, Chair; Stanford, Vice Chair, Operating; Trudeau, Vice Chair, Capital; Frame, Vice Chair, Finance; Cleveland, Conway, Dhingra, Hansen, Hasegawa, Kauffman, Pedersen, Riccelli, Saldaña, Wellman and Wilson, C..
Minority Report: Do not pass.
Signed by Senators Gildon, Ranking Member, Operating; Torres, Assistant Ranking Member, Operating; Schoesler, Ranking Member, Capital; Dozier, Assistant Ranking Member, Capital; Boehnke, Braun, Muzzall and Warnick.
Minority Report: That it be referred without recommendation.
Signed by Senator Wagoner.
Staff: Jeffrey Mitchell (786-7438)
Background:

Article VII, Section 1 of the Washington State Constitution provides that all taxes shall be uniform upon the same class of property. Under the Washington State Constitution, real estate constitutes one class of property, and it must be taxed uniformly within any particular taxing district in Washington. This means that taxes must be the same on real property of the same market value. Uniformity requires both an equal rate of tax and equality in valuing the property taxed. 
Summary of Bill:

The Washington State Constitution is amended to allow the Legislature to provide a property tax exemption for a principal place of residence.  The Legislature, in its discretion, may place restrictions and conditions upon the exemption.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:

PRO: This bill represents critical tax relief for thousands of homeowners. Washington is one the few states that does not offer property tax relief to working family home owners. About 72 percent of the property taxes collected in King County is from residential property owners. Residential taxpayers should normally pay about 60 percent. This dramatic shift is a result of the pandemic and the commercial market upheaval. This bill will create a more fair and equitable tax system. This bill will affect almost 500,000 homeowners in King County and reduce the taxable value of an individual home by approximately $425,000. It would provide substantial property tax relief without impacting K-12 education funding. This bill provides much needed tax relief to working families that have been impacted by inflation. Most of the assessors support the policy of the bill, but are very concerned about the details. The bill should require a Social Security number for every owner to ensure that a person is not benefitting on multiple exemption claims. DOR should transmit data to assessors after removing Social Security numbers since many counties don't have access to the same level of security as the state.

 

Outreach will be expensive and needs to be addressed. State funding to defray county administrative costs must be directed to a dedicated assessor account. The county funding mechanism is based on new claims but there will be a lot of work when property is transferred or this is some other change in ownership. 
Persons Testifying: PRO: John Wilson, Office of Assessments/King County Assessor John Wilson; Linda Hjelle, Snohomish County Assessor; Eli Taylor Goss, WA State Budget and Policy Center.
Persons Signed In To Testify But Not Testifying: No one.