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WashingtonSB 55292025-2026 Regular SessionSenateWALLET

Amending the county population threshold for counties that may exempt from taxation the value of accessory dwelling units to incentivize rental to low-income households.

Sponsored By: Chris Gildon (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Homeowner tax relief with rental limits

Starting with property taxes collected in 2026, participating Washington local governments can exempt qualifying accessory dwelling units from property tax. These are small homes on the same property as a main home. Counties with at least 1.5 million people can offer the exemption. In counties with 900,000 to 1.5 million people, a city or county resolution must authorize it and explain reporting to the assessor; only detached units qualify. The unit’s improvement value cannot exceed 30% of the original structure’s value. Tenants must have adjusted income at or below 60% of county median household income, using HUD figures adjusted for household size. Rent cannot exceed 30% of the tenant’s monthly income, and the tenant cannot be the owner’s immediate family. Owners must apply annually with an affidavit, income documents, and a lease lasting at least 12 months that states rent. The exemption continues only while the unit houses a qualifying household and meets these requirements. Local authorities can charge administration fees and impose penalties or recover tax benefits for noncompliance. A state review is due December 1, 2027, and the law expires January 1, 2034.

Tenant support when rental exemptions end

Beginning January 1, 2026, local governments offering the rental-unit tax exemption must set policies to help tenants when exemptions expire. Help can include information about available services. The law does not promise cash aid or require landlords to continue the tenancy. This requirement expires January 1, 2034.

Sponsors & Cosponsors

Sponsor

  • Chris Gildon

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 137 • No: 8

House vote • 4/15/2025

3rd Reading & Final Passage

Yes: 89 • No: 8 • Other: 1

Senate vote • 3/11/2025

3rd Reading & Final Passage

Yes: 48 • No: 0 • Other: 1

Actions Timeline

  1. Effective date 7/27/2025.

    5/7/2025Senate

  2. Chapter 207, 2025 Laws.

    5/7/2025Senate

  3. Governor signed.

    5/7/2025legislature

  4. Delivered to Governor.

    4/22/2025legislature

  5. President signed.

    4/18/2025legislature

  6. Speaker signed.

    4/18/2025legislature

  7. Third reading, passed; yeas, 89; nays, 8; absent, 0; excused, 1.

    4/15/2025Senate

  8. Rules suspended. Placed on Third Reading.

    4/15/2025Senate

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

    4/14/2025Senate

  10. Referred to Rules 2 Review.

    4/7/2025Senate

  11. FIN - Majority; do pass.

    4/4/2025Senate

  12. FIN - Executive action taken by committee.

    4/4/2025Senate

  13. First reading, referred to Finance.

    3/13/2025Senate

  14. Third reading, passed; yeas, 48; nays, 0; absent, 0; excused, 1.

    3/11/2025Senate

  15. Rules suspended. Placed on Third Reading.

    3/11/2025Senate

  16. Floor amendment(s) adopted.

    3/11/2025Senate

  17. Placed on second reading by Rules Committee.

    3/5/2025Senate

  18. Passed to Rules Committee for second reading.

    2/18/2025Senate

  19. Minority; without recommendation.

    2/13/2025Senate

  20. WM - Majority; do pass.

    2/13/2025Senate

  21. First reading, referred to Ways & Means.

    1/27/2025Senate

  22. Introduced

    1/27/2025Senate

Bill Text

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