SENATE BILL REPORT

                                   ESHB 1105

             AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS,

                                 APRIL 3, 1991

Brief Description:  Exempting property in this state from execution in favor of another state.

SPONSORS:House Committee on Revenue (originally sponsored by Representatives Jones, Betrozoff, Kremen, Dellwo, Hargrove, Inslee, Miller, Fraser, Haugen, Wilson, Winsley, Ferguson, Riley, Broback, Edmondson, D. Sommers, May, Wynne, Chandler, Brumsickle and Orr).

HOUSE COMMITTEE ON REVENUE

SENATE COMMITTEE ON GOVERNMENTAL OPERATIONS

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Roach, Vice Chairman; Madsen, Matson, and Sutherland. 

Staff:  Rod McAulay (786‑7754)

Hearing Dates:April 3, 1991

BACKGROUND:

Washington residents who formerly worked in another state which imposes an income tax on their state pension or retirement benefits continue to be liable for such taxes.  They can be sued for such taxes even though they no longer use the taxing state's services, participate in its elections, or take advantage of tax exemptions or credits available to its residents.

SUMMARY:

When any state attempts to collect an income tax on pension or retirement benefits paid to a former resident of that state who is now a Washington resident, the retirement income and all other property in this state owned by the taxpayer is exempt from execution, garnishment, or seizure.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

Protection is extended to surviving spouses and dependents.  The exemption to include homesteaded property and all other real and personal property is clarified.  Placement of amendments in code is corrected and a statement of intent is added.

TESTIMONY FOR:

The bill will protect assets of retired persons from collection of income taxes on pensions and retirement benefits.  It will provide relief for many Washington residents.

TESTIMONY AGAINST:  None

TESTIFIED:  Representative Jones, original sponsor (pro); Senator L. Smith (pro)