S-1143.1 _______________________________________________
SUBSTITUTE SENATE BILL 5309
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State of Washington 52nd Legislature 1991 Regular Session
By Senate Committee on Governmental Operations (originally sponsored by Senators L. Smith, Bauer, Barr, Sutherland, Saling, McMullen, Craswell, McCaslin and Johnson).
Read first time February 4, 1991.
AN ACT Relating to exemptions and enforcement of judgments for state income taxes on pension and retirement income; amending RCW 6.13.030 and 4.24.141; adding a new section to chapter 6.15 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature recognizes that retired persons generally are financially dependent on fixed pension or retirement benefits and passive income from investment property. Because of this dependency, retired persons are more vulnerable than others to inflation and depletion of their assets. It is the purpose of this act to increase the protection of income of retired persons residing in the state of Washington from collection of income taxes imposed by other states.
Sec. 2. RCW 6.13.030 and 1987 c 442 s 203 are each amended to read as follows:
A
homestead may consist of lands, as described in RCW 6.13.010, regardless of
area, but the homestead exemption amount shall not exceed the lesser of (((i)))
(1) the total net value of the lands, mobile home, and improvements as
described in RCW 6.13.010, or (((ii))) (2) the sum of thirty
thousand dollars, except where the homestead is subject to execution,
attachment, or seizure by or under any legal process whatever to satisfy a
judgment in favor of any other state for failure to pay that state's income tax
on benefits received while a resident of the state of Washington from a pension
or other retirement plan, in which event there shall be no dollar limit on the
value of the exemption.
NEW SECTION. Sec. 3. A new section is added to chapter 6.15 RCW to read as follows:
Where a judgment is in favor of any other state for failure to pay that state's income tax on benefits received while a resident of the state of Washington from a pension or other retirement plan, all property in this state, real or personal, tangible or intangible, of a judgment debtor shall be exempt from execution, attachment, garnishment, or seizure by or under any legal process whatever, and when a debtor dies, or absconds, and leaves his or her spouse and dependents any property exempted by this section, the same shall be exempt to the surviving spouse and dependents.
Sec. 4. RCW 4.24.141 and 1951 c 166 s 2 are each amended to read as follows:
The term "taxes" as used in RCW 4.24.140 shall include:
(1) Any and all tax assessments lawfully made whether they be based upon a return or other disclosure of the taxpayer, upon information and belief of the taxing authority, or otherwise;
(2) Any and all penalties lawfully imposed pursuant to a tax statute;
(3) Interest charges lawfully added to the tax liability which constitutes the subject of the action.
"Taxes" as used in RCW 4.24.140 does not include income taxes and any related interest or penalties on benefits received from a pension or other retirement plan.