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Tacoma-Pierce County Association of REALTORS® members now have a new housing incentive to watch—Senate Bill 5529, recently signed into law, officially expands a key property tax exemption for accessory dwelling units (ADUs) to include Pierce County. This law encourages homeowners to build and rent detached ADUs to low-income households by offering a property tax exemption on the value added by the ADU.

The exemption applies to ADUs valued at 30% or less of the original home, rented to households earning 60% or less of the area median income. Rent must also be capped at 30% of the tenant’s income, and homeowners must file annually to remain eligible. For REALTORS®, this means an increased potential for ADU-friendly listings, more flexible housing solutions for clients, and greater opportunity to support community-level affordability goals.

For real estate professionals, this opens new opportunities to advise clients on building income-generating housing options while contributing to affordable housing supply. As more cities in Pierce County consider implementation, TPCAR will continue to monitor how local governments authorize and manage this incentive.

For more details on the bill, visit SB 5529 on the Washington State Legislature’s website.

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