HOUSE BILL REPORT
HB 2756
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 Reported by House Committee On:
Finance
Title: An act relating to allowing medicare supplement insurance premiums to be deducted from the calculation of disposable income for the purpose of qualifying for senior property tax programs.
Brief Description: Allowing medicare supplement insurance premiums to be deducted from the calculation of disposable income for the purpose of qualifying for senior property tax programs.
Sponsors: Representatives Driscoll, Parker, Haler, Ormsby, Liias, Pettigrew, Kelley, Sullivan, Green, Moeller, Simpson, Darneille, Morrell, Pearson, Hurst, Chase and Santos.
Brief History:
Committee Activity:
Finance: 2/9/10 [DPS].
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON FINANCE |
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Parker, Assistant Ranking Minority Member; Condotta, Conway, Ericks, Santos and Springer.
Staff: Susan Howson (786-7142).
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 age 61 in the year of application, retired from employment because of a disability, or 100 percent disabled due to military service; must own his or her principal residence; and must have a disposable income of less than $35,000 a year. Persons meeting these criteria are entitled to partial property tax exemptions and a property valuation freeze. Disposable income is defined as the sum of federally defined adjusted gross income and the following, if not included: capital gains; deductions for loss; depreciation; pensions and annuities; military pay and benefits; veterans' benefits except attendant-care and medical-aid payments; Social Security and federal railroad retirement benefits; dividends; and interest income.Some costs may be deducted from the disposable income total as follows: payments for the care of either spouse received in the home; a nursing home, boarding home, or adult family home; payments for medicare insurance premiums; and payments for prescription drugs.
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Summary of Substitute Bill:
Medigap and other medicare supplement insurance premiums may be deducted from the combined disposable income total when computing the retired person property tax reduction.
Substitute Bill Compared to Original Bill:
A technical change was incorporated to allow medigap to be deducted from the combined disposable income calculation.
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Appropriation: None.
Fiscal Note: Available.
Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:
(In support) Our low-income elderly are really hurting right now with the current economic conditions. Seniors that are on fixed incomes are facing a growing tax burden as their property values increase. These people have been taxpayers and home owners for several years. We already provide deductions for medicare part A premiums, so we should provide one for medicare part B and part D premiums. We need to recognize the importance of keeping these people in their homes.
(Opposed) None.
Persons Testifying: Representative Driscoll, prime sponsor.
Persons Signed In To Testify But Not Testifying: None.