Legislative information - Quarter 4, 2023

Fourth quarter 2023 update

Keeping taxes from hitting too close to home

During the 2023 session, the legislature passed House Bill 1355, sponsored by Representative Wylie and supported by lawmakers on both sides of the aisle. The bill impacted property tax exemption programs for senior citizens, people with disabilities, and military veterans.

It revised the calculation of income thresholds and the frequency of the adjustments. It also exempted certain cost-of-living adjustments from the qualification criteria to avoid disrupting eligibility for the property tax relief programs while coming out of a period of unusually high inflation.

To see the income thresholds for your county, click here and select the link for the period of 2024 to 2026. As was stated by bill proponents in the committee hearing, maintaining stable housing is in everyone’s best interest.

Although income thresholds have changed, the application process has not—the exemption and deferral programs continue to be administered by your county assessor’s office. However, DOR has compiled some helpful resources. To learn more about the property tax exemptions for senior citizens and people with disabilities, please check out our brochure. For information on property tax exemptions and deferrals, we’ve listed them here with concise information about eligibility, benefits, requirements, and more.

Exciting WFTC milestones

The Working Families Tax Credit has surpassed the $100 million mark for refunds to Washington residents for the 2023 calendar year. This is the first year of the program, which is administered by the Department of Revenue. Washingtonians have until Dec. 31 to apply for the tax credit for taxes paid in 2022.

Beginning in 2024, WFTC applicants will be able to receive their refund via prepaid debit card in addition to the direct deposit and paper check options available now. We anticipate prepaid debit cards will help applicants with limited or no access to traditional financial institutions take advantage of their refund more quickly and conveniently.

Want to get updates on WFTC results? DOR has launched a dashboard of WFTC performance data on the official WFTC website, which we update twice a month. We also encourage you to remind your constituents to check their eligibility for the tax credit and apply online at workingfamiliescredit.wa.gov.

Benton Co. levy error an example of need for 2023 DOR bill

Earlier this year, Benton County Fire District 4 found itself with a $500,000 budget shortfall due to a levy error that was not the district’s fault. You can read more about it in this news article.

During the 2023 session, DOR submitted agency request legislation sponsored by Representative Street that addressed this very situation. House Bill 1303 provides a new way to recoup funds lost due to a levy error for which a taxing district is not at fault. The bill passed out of the legislature with bipartisan support, for which we are very grateful.

Unfortunately, the legislation is not in time to help the fire district in Benton County, but the next time one of Washington’s 1,800 taxing districts finds itself in this situation, HB 1303 will ensure that the district is able to make itself whole and continue to provide the services its residents rely on.

FY 2023 sets UCP record

Fiscal year 2023 was a banner year for DOR’s Unclaimed Property program, returning an all-time high of $138.9 million in unclaimed property back to Washingtonians. That is almost $50 million above the FY 2022 figure of $89.4 million.

DOR is pleased with and encouraged by the results, but we are not resting on our laurels. We are in the first year of our new Money Match program, which automatically returns unclaimed property to verified owners without requiring them to apply. We will continue to innovate and improve processes to ensure that Washingtonians can easily recover money and other property rightfully owed to them.

Wildfire taxpayer relief resources

DOR is offering help to businesses and property owners impacted by the recent wildfires in our state. Businesses that are affected by the fire and cannot file and pay their excise tax returns on time should contact DOR to request a filing extension before the filing deadline. Property owners whose properties were damaged or destroyed by the fires can apply to their county assessor to reduce the taxable value of the properties.

In addition, businesses in impacted areas can also request:

• An application for credit for damaged timber for forest taxes;
• Reschedule of a planned audit;
• More time to file a business license or registration renewal;
• An extension of an expiring resellers permit. 

DOR has offered to assist counties impacted by the fires to help with changes to property values and the resulting impacts on local levies and property tax bills. More information, including forms for impacted businesses and property owners, can be found on our website.