SENATE BILL REPORT

                   SB 5528

                    As of February 16, 1995

Title:  An act relating to property tax relief for residential property leased to disabled persons.

Brief Description:  Providing property tax relief for residential property leased to disabled persons.

Sponsors:  Senators West, Morton and Winsley.

Brief History:

Committee Activity:  Ways & Means:  2/14/95.

SENATE COMMITTEE ON WAYS & MEANS

Staff:  Terry Wilson  (786-7715)

Background:  Some senior citizens and persons retired due to disability are entitled to property tax relief on their principal residences.  To qualify, a person must be 61 in the year of application or retired from employment because of a physical disability, own his or her principal residence, and have a disposable income below specified levels.

To be eligible for an exemption, the disposable income of the applicant's household must fall below $26,000 a year.  A partial property tax exemption is provided according to the following table:

Income Exemption

$18,001 to $26,000All excess levies

$15,001 to $18,000All excess levies

Regular levy on greater of $30,000 or 30 percent of valuation ($50,000 valuation maximum)

$15,000 or lessAll excess levies

Regular levy on greater of $34,000 or 50 percent of valuation

Summary of Bill:  The senior citizen property tax exemption program is extended to persons who rent to disabled tenants based on the household income of the tenant.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  The bill takes effect January 1, 1996, if SJR 8211 is approved at the November 1995 general election.

Testimony For:  It is difficult for disabled people who are not well off enough to own a house and who are on fixed incomes to pay increasing rents from rising property taxes.  This encourages landlords to install ramps and devices needed by the disabled.

Testimony Against:  This would be the first exemption that does not enure to the recipient.

Testified:  Senator West, prime sponsor (pro); Joseph D. Whaley, M.S. Society Coalition of Responsible Disabled (pro); Linda Lethlean, DOR.