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Bill

SB 6136

Reestablishing a business and occupation tax on the privilege of providing property for rent and supporting access to affordable rental property by exempting from tax landlords participating in a rent stabilization program.

2023-2024 Regular Session Introduced by Noel Frame and 6 co-sponsors

Washington bill would tax landlords' rental income while exempting those enrolled in rent stabilization programs, generating housing affordability funding through behavioral incentives.

Referred to Ways & Means.
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Bill Summary · SB 6136

Legislative bill overview

SB 6136 would reinstate a business and occupation (B&O) tax on landlords who rent out residential property in Washington state, while exempting those who participate in approved rent stabilization programs. The bill aims to generate revenue while incentivizing landlords to voluntarily cap rent increases.

Why is this important

Washington currently has no state-level tax specifically on rental property income, making this a significant potential revenue source for affordable housing initiatives. The bill represents a policy choice about how to fund housing affordability and whether to use tax incentives to encourage voluntary rent controls—a contested approach to the housing shortage.

Potential points of contention

  • Economic impact on landlords: Critics argue the tax could reduce rental housing supply, increase rents for non-participating landlords, or discourage property maintenance and investment, while supporters contend it shifts costs to those profiting from housing
  • Effectiveness of voluntary participation: Questions exist about whether tax exemptions are sufficient incentive for widespread rent stabilization program enrollment, or if the tax becomes primarily a revenue tool rather than behavioral change mechanism
  • Definition and enforcement challenges: The bill requires clear definitions of qualifying "rent stabilization programs" and mechanisms to verify landlord compliance, raising administrative complexity and potential disputes over what qualifies

Compiled from official sources — confirm details with the bill’s official record.

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