HB 1494 - DIGEST

     Provides that a claimant may defer that portion of the increase in real property taxes on the claimant's principal residence that exceeds fifteen percent of the taxes due the previous year.  In determining the amount of taxes that are eligible for deferral under this provision, any increase in tax due to physical improvements made to the property since the previous assessment shall not be considered in the year in which improvements are made.

     Provides that deferral of taxes under this chapter is subject to the following conditions:

     (1) The claimant must have owned, at the time of filing, the residence on which the real property taxes have been imposed.

     (2) The property taxes must have been imposed upon a residence that was occupied by the claimant as a principal place of residence.

     (3) The claimant must have a combined disposable income, as defined in RCW 84.36.383, less than the median household income as estimated for the previous year by the office of financial management for the county where the residence is located.

     (4) A deferral is not allowed for taxes levied in the first full calendar year in which the person owns the residence.

     (5) The claimant must have and keep in force fire and casualty insurance in sufficient amount to protect the interest of the state in the claimant's equity value.  If the claimant fails to keep fire and casualty insurance in force to the extent of the state's interest in the claimant's equity value, the amount deferred shall not exceed one hundred percent of the claimant's equity value in the land or lot only.

     (6) The total amount of taxes deferred, including interest thereon, must not exceed eighty percent of the claimant's equity value in the residence.