Washington Expands Property Tax Exemption for Accessory Dwelling Units

The Washington Governor signed a law Expanding the Accessory Dwelling Unit Property Tax Exemption. The law includes lowering the population threshold to permit counties with populations of at least 900,000 and cities in those counties to authorize a property tax exemption for the construction of Accessory Dwelling Units that landlords rent to low-income households with additional requirements. The law takes effect on July 27, and applies to taxes levied for collection beginning in 2026, and expires Jan. 1, 2034. [S.B. 5529, enacted 05/07/25]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.