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WashingtonHB 26102025-2026 Regular SessionHouseWALLET

Ensuring nonprofit housing providers qualify for a property tax exemption when the property is temporarily used for certain community purposes other than affordable housing.

Sponsored By: Chipalo Street (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Time-limited tax break for nonprofit homes

Beginning Jan 1, 2027, a nonprofit’s property tax exemption for building or selling homes to low‑income buyers can continue after a transfer to another nonprofit. The new owner must apply on time and qualify under the same rules. No new first‑time applications are accepted after Dec 31, 2027. The exemption does not apply to taxes due in 2038 or later, and this program section ends Jan 1, 2038.

Easier renewal for some nonprofit exemptions

Most exempt property owners must file a renewal by March 31 each year. From 2027 through 2032, nonprofit cemeteries and groups under RCW 84.36.560 or 84.36.675 do not file annually. Starting in 2033, cemeteries still do not file annually, and groups under RCW 84.36.560 renew every third year by March 31. This lowers paperwork for those groups.

Nonprofit housing can host limited events

Nonprofit housing properties can host community uses without losing their property tax break. They can be used up to 50 days each year, with no more than 15 days for money‑making or business promotion. If those limits are exceeded in a year, the exempt part loses its break for that year. These rules apply before and after Jan 1, 2033, and other requirements (reasonable rent or donations, upkeep, and licensing) still apply.

Rules start with 2027 property taxes

The law applies to property taxes collected in 2027 and later. Starting Jan 1, 2027, RCW 82.32.805 and 82.32.808 do not apply to this act. These rules set timing and administration for how the tax changes work.

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Sponsors & Cosponsors

Sponsor

  • Chipalo Street

    Democratic • House

Cosponsors

  • Edwin Obras

    Democratic • House

  • Julia Reed

    Democratic • House

  • Julio Cortes

    Democratic • House

  • Natasha Hill

    Democratic • House

  • Sharlett Mena

    Democratic • House

  • Shaun Scott

    Democratic • House

  • Timm Ormsby

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 132 • No: 13

Senate vote • 3/6/2026

3rd Reading & Final Passage

Yes: 44 • No: 4 • Other: 1

House vote • 2/17/2026

3rd Reading & Final Passage

Yes: 88 • No: 9 • Other: 1

Actions Timeline

  1. Effective date 6/11/2026*.

    3/18/2026House

  2. Chapter 102, 2026 Laws.

    3/18/2026House

  3. Governor signed.

    3/18/2026legislature

  4. Delivered to Governor.

    3/10/2026legislature

  5. President signed.

    3/9/2026legislature

  6. Speaker signed.

    3/6/2026legislature

  7. Third reading, passed; yeas, 44; nays, 4; absent, 0; excused, 1.

    3/6/2026House

  8. Rules suspended. Placed on Third Reading.

    3/6/2026House

  9. Placed on second reading by Rules Committee.

    3/5/2026House

  10. Passed to Rules Committee for second reading.

    2/27/2026House

  11. WM - Majority; do pass.

    2/26/2026House

  12. First reading, referred to Ways & Means.

    2/19/2026House

  13. Third reading, passed; yeas, 88; nays, 9; absent, 0; excused, 1.

    2/17/2026House

  14. Rules suspended. Placed on Third Reading.

    2/17/2026House

  15. Rules Committee relieved of further consideration. Placed on second reading.

    2/16/2026House

  16. Referred to Rules 2 Review.

    2/9/2026House

  17. FIN - Majority; do pass.

    2/5/2026House

  18. FIN - Executive action taken by committee.

    2/5/2026House

  19. First reading, referred to Finance.

    1/21/2026House

  20. Introduced

    1/21/2026House

Bill Text

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