SENATE BILL REPORT
SB 5707


This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 19, 2007

Title: An act relating to limiting, for property tax purposes, the maximum assessed value of a residence for persons sixty-one and older.

Brief Description: Limiting, for property tax purposes, the assessed value of a residence for persons who are sixty-one and older.

Sponsors: Senators Parlette, Haugen, Swecker, Stevens, Holmquist, Benton and Kilmer.

Brief History:

Committee Activity: Ways & Means: 2/15/07.


SENATE COMMITTEE ON WAYS & MEANS

Staff: Dean Carlson (786-7305)

Background: Some senior citizens, persons retired due to disability, and 100 percent disabled veterans 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 combined disposable income of $35,000 or less a year. Persons meeting these criteria are entitled to partial property tax exemptions and a freeze on the valuation of their property.

Summary of Bill: The bill as referred to committee not considered.

Summary of Proposed Substitute (Ways & Means): The value of a person's residence for property tax purposes, who is 61 years or older, and has an income greater than $35,000 and less than $80,000 is limited to a maximum annual increase of 5 percent. If the increase in the value of the property over the previous year is less than 5 percent, then that value would be the value the property is assessed at. If the increase is greater than 5 percent, the property's assessed value is increased 5 percent.

Any improvements to the property must be added to the otherwise determined value and true and fair value. No person shall receive the value limitation on more than one property.

Appropriation: None.

Fiscal Note: Requested on February 14, 2007.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: I am tuned into seniors being taxed out of there homes and realized there is a tax shift, but the tax shift is minimal. This is the biggest issue I've heard from my district.

OTHER: We prefer the use of deferrals over exemptions or deductions.

Persons Testifying: PRO: Senator Parlette, prime sponsor.

OTHER: Amber Carter, Association of Washington Business.