3-Year Tax Break

Three-Year Break

ESB 5454 The following paragraph is on the 3rd page of this downloadable pdf.  Three Year Break.

ESB 5454 Legislative changes for qualifying single-family dwellings damaged by a natural disaster

• Engrossed Senate Bill 5454 (ESB 5454) amends RCW 84.70.010 regarding destroyed property claims for improvements that were damaged or destroyed by natural disasters and creates a property tax exemption for the amount of new construction that replaces the qualifying single-family dwelling damaged or destroyed as a result of a qualifying natural disaster. The bill:
  Establishes a new three-year property tax exemption for improvements to single-family dwellings that have been damaged, and reduced in assessed value by more than 20%, due to a natural disaster that occurred on or after Aug. 31, 2020, beginning with taxes levied for collection in 2022. Qualifying properties must be located in a disaster area declared by the governor or a county legislative authority.
  • Limits the value of the exemption to the total amount of the reduction in value due to the damage to, or destruction of, the property. This amount is determined by deducting the value of the property after it was damaged from the value of the property before it was damaged. This exemption may also apply to a complete rebuild of a totally destroyed home.
  • Requires property owners to apply for the exemption with the county assessor prior to initiating construction of the new improvement. If a taxpayer initiated new construction prior to the effective date of this legislation, July 25, 2021, they must apply for the exemption by
    Oct. 1, 2021. To qualify, the dwelling must be owned by the same person(s), or their relatives, who owned the property at the time it was negatively impacted by the natural disaster.
  • Prohibits the county assessor from approving any applications for exemption received after June 30, 2026.
  • Requires the value of the improvements to be considered as new construction as though the property was not exempt for levy purposes under chapters 36.21 and 84.55 RCW.

A new exemption application form for homes damaged by a qualifying natural disaster is available on our website at dor.wa.gov. For more information regarding destroyed property, please refer to the Destroyed Property FAQ.

Tax Refunds!

We already paid all of our taxes for 2023 at the beginning of the year.

When???

Can we expect to receive the refunds for overpaid taxes on our homes that were destroyed on August 18, 2023 in the Oregon Road wildfire in Elk?