More older people and those with disabilities would qualify for property tax breaks under a state proposal to expand eligibility under a long-standing exemption program. The bill will soon head to Gov. Jay Inslee's desk.
House Bill 1355, passed by the state Senate on Friday, would increase the income limit to qualify for existing property tax exemptions, making more people eligible for the program.
Homeowners can get a break on their property taxes if they are at least 61 years old, unable to work because of a disability or meet one of several other qualifications. Applicants also must make less than their county's income limit for the program. In King County, that limit is currently about $58,400. Under the new bill, that threshold would increase to about $72,000 in King County.
State lawmakers worried that a boost in Social Security benefits could push people out of the program, making their incomes too high to qualify even as their other costs climbed because of inflation. The bill passed unanimously in the House and Senate.
The soonest a homeowner could qualify under the new limits would be for 2024 taxes based on 2023 income, King County Assessor John Wilson said.
"In the last couple years, I've heard from way too many senior homeowners who've literally, in some cases, been in tears about the property taxes, who say 'I don't know how I can afford this but I don't know where [else] I'm going to live,'" Wilson said.
"That's the dilemma we've put seniors in with this real estate market," he said. "Taxes go up, values go up, but there's no alternative housing for these folks."
Under the existing program, the lower an applicant's income, the greater discount they receive. For homeowners who qualify, the county freezes their property value and exempts them from certain levies. Those with the lowest incomes also get a break on their tax bill, up to 60%. About 19,000 King County residents saved an average of $4,100 per year under the program in 2021.
The state last expanded eligibility in 2020, and King County struggled to keep up with demand. Applications tripled, frustrated homeowners waited months to hear about their applications, and refunds for people who paid before receiving exemptions were delayed by months, an audit released last year found.
The assessor's office has made some improvements, but wait times for applications are still about eight months, according to a follow-up auditor's report released in early April.
Wilson said his office is working to reduce its backlog, get more people to apply using the online portal and hire more staff. He estimates "several thousand" more people in King County are likely to qualify for exemptions.
For more information about tax exemptions, go to: kingcounty.gov/depts/assessor.
