WA Lawmakers to end 2024 Legislative Session Thursday, March 7th
All eyes are on the 2024 Washington legislature – who will spend this final week talking about the budget. It was a late session last week, as bills either died, or made their way to the Governor’s desk. Several bills have ben passed by both chambers – but any amendments mean they need to do through concurrence meetings before they are finalized.
Washington REALTORS® is watching four key housing related tax bills that could resurface in what the legislature calls “needed to implement the budget,” or NTIB.
In addition to an increase, this bill also adds a new “transfer tax” concept to real estate transactions. The Washington REALTOR® Legislative committee voted to push back against this bill and has launched an advertising campaign to oppose it. Passed out of the House Finance committee Feb 23rd.
- B and O Tax on Rentals SB 6136
Reestablishing a business and occupation tax while offering a tax exemption from landlords participating in rent control measures
- Raising the Property Tax Lid SB5770 DEAD
Lifts the property tax lid to up to 3% (from 1%) of value. Also allows for excess funds to be banked for high inflation years.
Authorizes a State Property Tax Exemption of $100k or 60% of the county median home value. This would require passage of a constitutional amendment.
Legislature to now vote on 3 (of 6) voter led initiatives
After hearings last week, three voter led initiatives will now be voted on in the legislature. The Senate is taking up the following bills this week. Hearings on those three are set for this week:
- Reasonable police pursuit (I-2113): set for a public hearing in a joint House & Senate committee hearing on 2/28.
- Clarifying the prohibition on a state income tax (I-2111): set for a joint House & Senate committee hearing on 2/27.
- Establishing the parental bill of rights (I-2081): set for a public hearing in a joint House and Senate committee on Feb. 28th
Three other initiatives will not be heard and instead, will instead go straight to the November ballot.
- Removing the State’s Carbon Emission Tax (I-2117)
- Opting Out of Long Term Care Tax (I-2124)
- Repealing the Capital Gains Tax (I-2029)
READ MORE ON THE INITIATIATIVES HERE – https://www.spokanerealtor.com/statewide-initiatives-2024/
Here is a rundown on housing bills of concern:
Key Washington REALTOR® Bills
Increase Housing Supply Through Transit-Oriented Development HB2321 PASSED
This bill allows for more flexibility with cities wanting to build locally-developed programs that reflect market conditions, with state funding support, and by using successful incentive programs like the Multi-Family Tax Exemption (MFTE).
Co-Living Bill HB 1998
Requires jurisdictions to allow co-living as permitted in any zone that allows multi-family. PASSED
Rent Control HB 2114 DEAD
Limits rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement. Variations of between 5% and 7% caps are being debated.
Banning Natural Gas HB1589 PASSED
HB 1589 has passed a modified version of this bill. This bill is alive, but several expected modifications are expected. ONLY APPLIES TO PUGET SOUND ENERGY
Creating a Washington State Department of Housing HB 2270 DEAD
This bill would create a new Washington State Department of Housing.
HOA modification bill SB5796 PASSED
This is a bill designed to have HOA’s be a part of the solution to removing legally outdated, or racist language from homeowner’s titles and association language. Opponents are concerned the impact would be to take away HOA authority. Washington REALTORS® Worked with Sen. Padden to add an amendment that delayed this transition until 2028, so that over the next 3 years, we can determine which parts of the RCW’s are impacted. The Senate is set to vote on this measure.
Spokane REALTOR® Bills of Note
Modifying the state’s HB1110 Infill requirements HB2321 PASSED
This measure helps fix the issues we saw surface with 5-and-6-plexes in the City of Spokane. Set for a floor vote.
Incentives for Affordability and Building Conversions SB 6175 DEAD
A key favorite by several Spokane area lawmakers, this measure would offer incentives such as the Multi-Family Tax Exemption for the Conversion of Existing Office Space into Residential Housing. Local commercial reports show Spokane has a 31% vacancy rate for commercial office space.
UGA Swaps SB 5834 PASSED
Sen Short’s bill has passed the Senate.
Allows for GMA swaps during a County’s annual review process. Has passed the Senate and heads to the House. This bill is set for a Senate floor vote.
Wildfire Recovery Building Standards HB1899 PASSED
Has passed the House, but as a substitute bill that would set up a fund for just the cost of a heat pump and offers no assistance for charging stations and solar panels.
Promoting Bee Habitat SB 5934 PASSED
Sen Mike Padden’s bill. Has been modified to say at least 25% of code required landscaping be set aside for Bee friendly habitat.. adding “to the extent practicable.”