Z-1107.1  _______________________________________________

                         SENATE BILL 6469

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Senators Snyder, Hale, Kline, Winsley, Patterson, Rasmussen, B. Sheldon and Gardner; by request of Governor Locke

Read first time 01/17/2000.  Referred to Committee on Ways & Means.

Providing a revenue neutral property tax credit for certain senior citizens and retired persons.

    AN ACT Relating to providing a revenue neutral tax credit in regards to ad valorem taxation of real property occupied by senior citizens and retired persons; amending RCW 84.36.381, 84.36.387, 84.52.080, and 84.56.050; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 84.36.381 and 1998 c 333 s 1 are each amended to read as follows:

    A person shall be exempt from any legal obligation to pay all or a portion of the amount of excess and regular real property taxes due and payable in the year following the year in which a claim is filed, and thereafter, in accordance with the following:

    (1) The property taxes must have been imposed upon a residence which was occupied by the person claiming the exemption as a principal place of residence as of the time of filing((:  PROVIDED, That)).  Any person who sells, transfers, or is displaced from his or her residence may transfer his or her exemption status to a replacement residence, but no claimant shall receive an exemption on more than one residence in any year((:  PROVIDED FURTHER, That)).  Confinement of the person to a hospital or nursing home shall not disqualify the claim of exemption if:

    (a) The residence is temporarily unoccupied;

    (b) The residence is occupied by a spouse and/or a person financially dependent on the claimant for support; or

    (c) The residence is rented for the purpose of paying nursing home or hospital costs;

    (2) The person claiming the exemption must have owned, at the time of filing, in fee, as a life estate, or by contract purchase, the residence on which the property taxes have been imposed or if the person claiming the exemption lives in a cooperative housing association, corporation, or partnership, ((such)) the person must own a share therein representing the unit or portion of the structure in which ((he or she)) the person resides.  For purposes of this subsection, a residence owned by a marital community or owned by cotenants shall be deemed to be owned by each spouse or cotenant, and any lease for life shall be deemed a life estate;

    (3) The person claiming the exemption must be sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or must have been, at the time of filing, retired from regular gainful employment by reason of physical disability((:  PROVIDED, That any)).  A surviving spouse of ((a)) the person who was receiving an exemption at the time of the person's death shall qualify if the surviving spouse is fifty-seven years of age or older and otherwise meets the requirements of this section;

    (4) The amount that the person shall be exempt from an obligation to pay shall be calculated on the basis of combined disposable income, as defined in RCW 84.36.383.  If the person claiming the exemption was retired for two months or more of the assessment year, the combined disposable income of ((such)) the person shall be calculated by multiplying the average monthly combined disposable income of ((such)) the person during the months ((such)) the person was retired by twelve.  If the income of the person claiming exemption is reduced for two or more months of the assessment year by reason of the death of the person's spouse, or when other substantial changes occur in disposable income that are likely to continue for an indefinite period of time, the combined disposable income of ((such)) the person shall be calculated by multiplying the average monthly combined disposable income of ((such)) the person after ((such)) the occurrences by twelve.  If it is necessary to estimate income to comply with this subsection, the assessor may require confirming documentation of ((such)) the income prior to May 31st of the year following application;

    (5)(a) A person who otherwise qualifies under this section and has a combined disposable income of thirty thousand dollars or less shall be exempt from all excess property taxes; and

    (b)(i) A person who otherwise qualifies under this section and has a combined disposable income of twenty-four thousand dollars or less but greater than eighteen thousand dollars shall be exempt from all regular property taxes on the greater of forty thousand dollars or thirty-five percent of the valuation of ((his or her)) the residence, but not to exceed sixty thousand dollars of the valuation of ((his or her)) the residence; or

    (ii) A person who otherwise qualifies under this section and has a combined disposable income of eighteen thousand dollars or less shall be exempt from all regular property taxes on the greater of fifty thousand dollars or sixty percent of the valuation of ((his or her)) the residence; and

    (6) For a person who otherwise qualifies under this section and has a combined disposable income of thirty thousand dollars or less, the valuation of the residence shall be the assessed value of the residence on the later of January 1, 1995, or January 1st of the assessment year the person first qualifies under this section.  If the person subsequently fails to qualify under this section only for one year because of high income, this same valuation shall be used upon requalification.  If the person fails to qualify for more than one year in succession because of high income or fails to qualify for any other reason, the valuation upon requalification shall be the assessed value on January 1st of the assessment year in which the person requalifies.  If the person transfers the exemption under this section to a different residence, the valuation of the different residence shall be the assessed value of the different residence on January 1st of the assessment year in which the person transfers the exemption.

    In no event may the valuation under this subsection be greater than the true and fair value of the residence on January 1st of the assessment year.

    This subsection does not apply to subsequent improvements to the property in the year in which the improvements are made.  Subsequent improvements to the property shall be added to the value otherwise determined under this subsection at their true and fair value in the year in which they are made.

All taxpayers who qualify for exemption under this section shall be allowed a credit against the state levy equal to the tax imposed on the assessed value of the owner-occupied residential property for the state levy.

    Sec. 2.  RCW 84.36.387 and 1992 c 206 s 14 are each amended to read as follows:

    (1) All claims for exemption under RCW 84.36.381 shall be made and signed by the person entitled to the exemption, by ((his or her)) the person's attorney in fact or in the event the residence of ((such)) the person is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by ((such)) the holder or by the owner, either before two witnesses or the ((county)) assessor or ((his)) the assessor's deputy in the county where the real property is located((:  PROVIDED, That)).  If a claim for exemption is made by a person living in a cooperative housing association, corporation, or partnership, ((such)) the claim shall be made and signed by the person entitled to the exemption and by the authorized agent of ((such)) the cooperative.

    (2) If the taxpayer is unable to personally submit ((his own)) a claim, the claim shall be submitted by a duly authorized agent or by a guardian or other person charged with the care of the person or property of ((such)) the taxpayer.

    (3) All claims for exemption and renewal applications shall be accompanied by such documented verification of income as shall be prescribed by rule adopted by the department of revenue.

    (4) Any person signing a false claim with the intent to defraud or evade the payment of any tax shall be guilty of the offense of perjury.

    (5) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption to which a claimant residing therein is entitled and ((such)) the cooperative shall reduce any amount owed by the claimant to the cooperative by ((such)) the exact amount of tax exemption or, if no amount be owed, the cooperative shall make payment to the claimant of ((such)) the exact amount of exemption.

    (6) A remainderman or other person who would have otherwise paid the tax on real property that is the subject of an exemption granted under RCW 84.36.381 for an estate for life shall reduce the amount which would have been payable by the life tenant to the remainderman or other person to the extent of the exemption.  If no amount is owed or separately stated as an obligation between these persons, the remainderman or other person shall make payment to the life tenant in the exact amount of the exemption.

    Sec. 3.  RCW 84.52.080 and 1989 c 378 s 16 are each amended to read as follows:

    (1) The ((county)) assessor shall extend the taxes upon the tax rolls in the form herein prescribed.  The rate percent necessary to raise the amounts of taxes levied for state and county purposes, and for purposes of taxing districts coextensive with the county, shall be computed upon the assessed value of the property of the county; the rate percent necessary to raise the amount of taxes levied for any taxing district within the county shall be computed upon the assessed value of the property of the district; all taxes assessed against any property shall be added together and extended on the rolls in a column headed consolidated or total tax.  In extending any tax, whenever it amounts to a fractional part of a cent greater than five mills it shall be made one cent, and whenever it amounts to five mills or less than five mills it shall be dropped.  The amount of all taxes shall be entered in the proper columns, as shown by entering the rate percent necessary to raise the consolidated or total tax and the total tax assessed against the property.

    (2) After entering the amounts under subsection (1) of this section, the assessor shall compute the amount of credit authorized under RCW 84.36.381 for each parcel of property owned and occupied by senior citizens or persons who are retired from gainful employment by reason of disability receiving the exemption authorized by RCW 84.36.381.  The credit allowed on any property shall be extended on the rolls in a column headed tax credit.  The assessor shall subtract the amount of the credit from the total tax and enter this amount in a column headed tax payable.

(3) For the purpose of computing the rate necessary to raise the amount of any excess levy in a taxing district which has classified or designated forest land under chapter 84.33 RCW, other than the state, the ((county)) assessor shall add the district's timber assessed value, as defined in RCW 84.33.035, to the assessed value of the property((:  PROVIDED, That)).  For school districts maintenance and operations levies only one-half of the district's timber assessed value or eighty percent of the timber roll of ((such)) the district in calendar year 1983 as determined under chapter 84.33 RCW, whichever is greater, shall be added.

    (((3))) (4) Upon the completion of ((such)) the tax extension, it shall be the duty of the ((county)) assessor to make in each assessment book, tax roll or list a certificate in the following form:

    I, . . . . . ., assessor of . . . . . . county, state of Washington, do hereby certify that the foregoing is a correct list of taxes levied on the real and personal property in the county of . . . . . . for the year ((one)) two thousand ((nine hundred and)) . . . . . .

    Witness my hand this . . . . day of . . . . . ., ((19)). . .

                              .............. , ((County)) Assessor

    (((4))) (5) The ((county)) assessor shall deliver said tax rolls to the ((county)) treasurer, on or before the fifteenth day of January, taking receipt therefor, and at the same time the ((county)) assessor shall provide the ((county)) auditor with an abstract of the tax rolls showing the total amount of taxes collectible in each of the taxing districts.

    Sec. 4.  RCW 84.56.050 and 1991 c 245 s 17 are each amended to read as follows:

(1) On receiving the tax rolls the treasurer shall post all real and personal property taxes from the rolls to the treasurer's tax roll, and shall carry forward to the current tax rolls a memorandum of all delinquent taxes on each and every description of property, and enter the same on the property upon which the taxes are delinquent showing the amounts for each year.  The treasurer shall notify each taxpayer in the county, at the expense of the county, of the amount of the real and personal property((,)) and the current and delinquent amount of tax due on the same((; and)).  The treasurer shall have printed on the notice the name of each tax and the levy made on the same.  The ((county)) treasurer shall be the sole collector of all delinquent taxes and all other taxes due and collectible on the tax rolls of the county((:  PROVIDED, That)).

(2) The term "taxpayer" as used in this section shall mean any person charged, or whose property is charged, with property tax; and the person to be notified is that person whose name appears on the tax roll herein mentioned((:  PROVIDED, FURTHER, That)).  If no name so appears the person to be notified is that person shown by the treasurer's tax rolls or duplicate tax receipts of any preceding year as the payer of the tax last paid on the property in question.

NEW SECTION. Sec. 5.  This act applies to taxes levied in 2000 for collection in 2001 and thereafter.

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