HOUSE BILL REPORT

                  HB 1313

             As Reported By House Committee on:

                           Revenue

Title:  An act relating to senior citizen property tax relief.

Brief Description:  Modifying qualifications for senior citizen property tax relief.

Sponsor(s):  Representatives Fraser, Brumsickle, Phillips, Jones and Scott.

Brief History:

  Reported by House Committee on:

Revenue, January 29, 1991, DPS.

HOUSE COMMITTEE ON

REVENUE

Majority Report: That Substitute House Bill No. 1313 be substituted therefore, and the substitute bill do pass.  Signed by 14 members:  Representatives Wang, Chair; Fraser, Vice Chair; Holland, Ranking Minority Member; Wynne, Assistant Ranking Minority Member; Appelwick; Brumsickle; Day; Leonard; Morris; Morton; Phillips; Rust; Silver; and Van Luven. 

Staff:  Rick Peterson (786-7150).

Background:  Qualifying senior citizens and retired disabled persons are entitled to a property tax exemption on their principal residence.  To qualify a person must be 61 on January 1st of the  application year, or retired from employment because of a physical disability.  In addition, the disposable income of the applicant's household must fall below $18,000 a year. 

Summary of Substitute Bill:  The age for qualification in the senior citizen property tax exemption program is reduced by one year.  A person may qualify if they are 61 years old by December 31st of the year of application.

Substitute Bill Compared to Original Bill:  Original bill allowed capital gain realized on the sale of a residence not to be added to the applicant's disposable income if the gain was transferred to a new principal residence.

Fiscal Note:  Requested January 24, 1991.

Effective Date of Substitute Bill:  Effective for taxes levied for collection in 1992.

Testimony For:  Seniors should be able to apply in time to receive tax relief when they are 62 years old, anytime during the year.

Testimony Against:  None.

Witnesses:  Ann Clifton, Thurston County Assessor (in favor).