WA HB1040

Allows seniors and disabled persons receiving property tax exemptions to exclude up to $6,000 per year in rental income from their "combined disposable income" calculation when renting living space in their principal residence

Rental income exclusion applies only to long-term rentals; short-term rentals (as defined in RCW 64.37.010) must still be reported as income

Amends RCW 84.36.383, which governs property tax exemption programs for seniors, disabled persons, and veterans

Takes effect for taxes levied for collection in 2027 and thereafter

Designates this tax preference as permanent, exempting it from the automatic expiration provisions in RCW 82.32.805 and 82.32.808