Bill > SB5771

This bill modifies the Washington state Working Families' Tax Credit (WFTC) by adding a new $300 refund for eligible low-income individuals who have leased or rented their primary residence or mobile home lot in Washington for at least 183 days during the calendar year, starting in 2026. The additional refund is designed to recognize the economic impact of property taxes that are indirectly paid by renters through their rental amounts. To qualify, individuals must meet existing WFTC eligibility requirements, which include having earned income, filing a federal tax return, and being a Washington resident. The new provision requires applicants to be a signatory on lease or rental agreements and apply for the additional refund through a process determined by the state department. The $300 refund will be adjusted annually for inflation beginning in 2027 and will be subject to phase-out based on income levels, similar to the existing WFTC structure. The bill is contingent on the passage of a constitutional amendment and specific funding allocation, and if these conditions are not met, the bill becomes void. The new rental-related refund aims to provide additional financial support to low-income renters who are effectively bearing the burden of property taxes through their rental payments.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5771&Year=2025&Initiative=false