HOUSE BILL REPORT

                     SHB 1313

                          As Amended by the Senate

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

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

Sponsor(s):  By House Committee on Revenue (originally sponsored by Representatives Fraser, Brumsickle, Phillips, Jones and Scott.

Brief History:

   Reported by House Committee on:

Revenue, January 29, 1991, DPS;

Passed House, February 6, 1991, 96-0;

Amended by Senate.

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 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.

EFFECT OF SENATE AMENDMENT(S): The Senate amendments expand the Senior Citizen Property Tax Exemption Program to include households with annual incomes up to $30,000.  The current program only covers households with incomes up to $18,000.  All households in the program are exempt from paying excess levies.  Currently households with incomes below $14,000 are provided additional property tax relief on a portion of their home value.  The Senate amendments expand the income categories and provide a larger exemption amount.

The exemption for households with incomes at or below $12,000 is expanded to households with annual incomes up to $18,000.  The exemption amount for this group is increased from the greater of $28,000 or 50 percent of home value to the greater of $40,000 or 50 percent of home value but not to exceed $100,000. 

The current exemption for households with incomes between $12,000 and $14,000 is changed to the income range between $12,000 and $24,000.  Note:  It appears that the Senate amendments inadvertently failed to change the $12,000 lower income limit for this category to $18,000.  The exemption amount is increased from the greater of $24,000 or 30 percent of home value but not to exceed $40,000 to the greater of $40,000 or 30 percent of home value but not to exceed $100,000.

Fiscal Note:  Requested January 24, 1991.

Effective Date:  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).

VOTE ON FINAL PASSAGE:

Yeas 96; Nays 0; Excused 2

Excused:  Representatives Appelwick and Wineberry.