Washington House Bill HB2610

Washington 2025-2026 Regular Session

• Introduced: 1/21/26
• Refer: 1/21/26
• Report Pass: 2/5/26
• Refer: 2/9/26
• Engrossed: 2/17/26
• Refer: 2/19/26
• Report Pass: 2/26/26
• Enrolled: 3/10/26
• Chaptered: 3/18/26
• Passed: 3/18/26

Caption

AN ACT Relating to ensuring nonprofit housing providers qualify for a property tax exemption when the property is temporarily used for certain community purposes other than affordable housing;

Summary

HB 2610 amends Washington’s property tax exemption laws for nonprofit housing providers and related entities. The bill is aimed at ensuring that a nonprofit housing provider does not lose its property tax exemption when property that is otherwise exempt is temporarily used for certain community purposes that are not themselves affordable housing, so long as the use fits within the bill’s conditions. It also makes conforming changes to exemption rules governing nonprofit property use, including temporary use, fundraising events, inadvertent use, and related administrative requirements. The bill also expands and clarifies exemption treatment for certain nonprofit affordable housing development projects and qualified cooperative associations. It creates a new exemption framework for property held by nonprofits or qualified cooperatives for development or redevelopment of residences for low-income households, and for property used in connection with qualified mutual self-help housing programs. The bill sets limits on how long property may remain exempt before transfer or occupancy requirements are triggered, and it establishes notice, reporting, and disqualification rules if the property is not transferred or used as required. It also includes deadlines, renewal requirements, and provisions for additional tax and interest if the exemption is later lost.

Impact

The bill changes multiple sections of Washington’s property tax exemption statutes in Title 84 RCW, primarily by broadening and clarifying when nonprofit-owned property remains exempt despite limited non-affordable-housing community use. It also adds new exemption provisions for certain affordable housing development and mutual self-help housing projects, while imposing administrative duties on the Department of Revenue, county treasurers, and affected nonprofits, including application, renewal, notice, and reporting obligations. The bill’s practical effect is to preserve tax-exempt status for more nonprofit housing-related property uses and to create new pathways for exemption tied to low-income housing development and ownership transfer requirements.

Sentiment

The overall sentiment appears strongly supportive. The bill passed the House Finance Committee unanimously, passed the House floor with a large bipartisan majority, and then passed the Senate Ways & Means Committee unanimously before receiving broad Senate floor approval. The vote pattern suggests the measure was viewed as a technical but meaningful housing-related tax clarification rather than a controversial policy shift.

Contention

There is little evidence of major contention in the available record, but the bill does impose new compliance and oversight requirements that could matter to nonprofit housing providers and the Department of Revenue. Potential points of concern include the new deadlines for transferring property to low-income households, the possibility of disqualification and additional tax liability if conditions are not met, and the reporting burden associated with annual financial statements and occupancy notices. Any opposition likely would have centered on administrative complexity or the scope of the new exemptions, though the recorded votes show limited resistance.