SHB 2267 - H AMD

By Representative Hatfield

Strike everything after the enacting clause and insert the following:

ANEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:

(1) In computing the tax imposed under this chapter, a credit is allowed for each financial institution for each loan in which part or all of the principal balance owed is forgiven to assist the victim of a landslide in an area that has been declared a state of emergency by the governor and a disaster by the president. The loan must be secured by a home that is both in the boundary of a declared state emergency and in the boundary of a declared federal disaster area, and the home is or will be a total loss or is or will be permanently uninhabitable.

(2)(a) The credit allowed under subsection (1) of this section is equal to one quarter of the amount forgiven, up to a maximum credit per loan of fifty thousand dollars.

(b) If less than the total principal balance is forgiven, the financial institution may claim the credit allowed under subsection (1) of this section only if the partial forgiveness is part of a plan to assist multiple victims and involves multiple financial institutions in a pooling or other arrangement.

(c) The department may request verification from the military department or other state agency that the loan is secured by a home in an area that is a state emergency and federal disaster, that (b) of this subsection applies, or may request other reasonable verification.

(3) For purposes of this section:

(a) "Financial institution" means any person to which a loan is owed.

(b) "Loan" means an obligation secured by a deed of trust or mortgage on a single-family residence that is located in an area that is both a state emergency and federal disaster resulting from a landslide.

(4) This section applies to all loans or parts of loans forgiven after the effective date of this act.

(5) Participation of a financial institution in this program contributes toward meeting the credit needs of the communities it serves as set forth under chapter 30.60 RCW for state banks, chapter 32.40 RCW for state savings banks, and the federal community reinvestment act of 1977 for federal savings banks, federal savings and loan associations, and national banks.

NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.@