H-3054.1
HOUSE BILL 2747
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State of Washington | 65th Legislature | 2018 Regular Session |
By Representatives Wylie, Harris, Johnson, Pellicciotti, Pollet, Stonier, Kloba, Chapman, Valdez, Appleton, Muri, Jinkins, Goodman, Gregerson, Doglio, Tharinger, and Slatter
Read first time 01/15/18. Referred to Committee on Finance.
AN ACT Relating to allowing a deduction for out-of-pocket medical expenses from the calculation of disposable income for senior property tax programs; amending RCW
84.36.383; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature enacted the property tax exemption authorized by Article VII, section 10 of the state Constitution based on a retired property owner's ability to pay taxes as measured by disposable income. The legislature finds that many retired persons have significant medical expenses while living on modest fixed incomes. The legislature further finds that many of these expenses are not deductible from the calculation of disposable income under RCW 84.36.383. Therefore, the legislature intends to provide a permanent deduction for out-of-pocket medical expenses in the calculation of disposable income for senior property tax exemption and deferral programs. Sec. 2. RCW 84.36.383 and 2012 c 10 s 74 are each amended to read as follows:
As used in RCW
84.36.381 through
84.36.389, except where the context clearly indicates a different meaning:
(1) The term "residence" means a single-family dwelling unit whether such unit be separate or part of a multiunit dwelling, including the land on which such dwelling stands not to exceed one acre, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations. The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides. The term also includes a single-family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW
84.04.080 and
84.04.090, such a residence is deemed real property.
(2) The term "real property" also includes a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe, connections with sewer, water, or other utilities. A mobile home located on land leased by the owner of the mobile home is subject, for tax billing, payment, and collection purposes, only to the personal property provisions of chapter
84.56 RCW and RCW
84.60.040.
(3) "Department" means the state department of revenue.
(4) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for:
(a) Drugs supplied by prescription of a medical practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions;
(b) The treatment or care of either person received in the home or in a nursing home, assisted living facility, or adult family home; ((and
(c) Health care insurance premiums for medicare under Title XVIII of the social security act))
(c) Medical, dental, and vision care expenses, including insurance premiums, deductibles, copayments, and coinsurance;
(d) Durable medical equipment and mobility enhancing equipment, as defined in RCW 82.08.0283; and (e) Long-term care insurance, as defined in RCW 48.84.020.
(5) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:
(a) Capital gains, other than gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;
(b) Amounts deducted for loss;
(c) Amounts deducted for depreciation;
(d) Pension and annuity receipts;
(e) Military pay and benefits other than attendant-care and medical-aid payments;
(f) Veterans benefits, other than:
(i) Attendant-care payments;
(ii) Medical-aid payments;
(iii) Disability compensation, as defined in Title 38, part 3, section 3.4 of the code of federal regulations, as of January 1, 2008; and
(iv) Dependency and indemnity compensation, as defined in Title 38, part 3, section 3.5 of the code of federal regulations, as of January 1, 2008;
(g) Federal social security act and railroad retirement benefits;
(h) Dividend receipts; and
(i) Interest received on state and municipal bonds.
(6) "Cotenant" means a person who resides with the person claiming the exemption and who has an ownership interest in the residence.
(7) "Disability" has the same meaning as provided in 42 U.S.C. Sec. 423(d)(1)(A) as amended prior to January 1, 2005, or such subsequent date as the department may provide by rule consistent with the purpose of this section.
NEW SECTION. Sec. 3. This act is not subject to the requirements provided in RCW 82.32.805 and 82.32.808. NEW SECTION. Sec. 4. This act applies to taxes levied for collection in 2019 and thereafter.
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