BP BHEAD INT H

AN ACT Relating to tax credits and reimbursements for education; adding a new chapter to Title 84 RCW; adding a new chapter to Title 82 RCW; prescribing penalties; creating a new section; and declaring an emergency.

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

NEW SECTION. Sec. 1. A person is entitled to a credit against state property taxes, in accordance with the following:

(1) The person claiming the credit or his or her spouse must have provided home schooling to or paid for private schooling for children living in the residence during the year in which the property taxes were paid;

(2) The person claiming the credit must provide proof of the requirements of subsection (1) of this section as provided by the department by rule;

(3) The property taxes must have been imposed upon a residence that was occupied by the person claiming the credit as a principal place of residence as of January 1st of the year for which the credit is claimed. A person who sells, transfers, moves, or is displaced from his or her residence may transfer his or her credit status to a replacement residence, but a claimant may not receive a credit on more than one residence in a year;

(4) The person claiming the credit 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 credit lives in a cooperative housing association, corporation, or partnership, the person must own a share in the association, corporation, or partnership representing the unit or portion of the structure in which the person resides. For purposes of this subsection, a residence owned by a marital community or owned by cotenants is deemed to be owned by each spouse or cotenant, and a lease for life is deemed a life estate; and

(5) The amount of the credit shall be one-half of the total amount of state property tax owed. However, the amount of the credit shall not exceed fifty percent of the estimated average total per-pupil K-12 state allocation, excluding allocations for state assistance for school facility construction, for the school year in which the credit is claimed per child living in the residence for which home schooling has been provided or for whom private schooling has been paid.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Cotenant" means a person who resides with the person claiming the reimbursement and who has an ownership interest in the residence.

(2) "Department" means the state department of revenue.

(3) "Home schooling" means home-based instruction for a majority of the school year, which instruction meets the requirements of RCW 28A.225.010 and chapter 28A.200 RCW.

(4) "Private schooling" means attendance for a majority of the school year at a private school that meets the requirements of chapter 28A.195 RCW.

(5) "Residence" means a single-family dwelling unit whether the unit is separate or part of a multiunit dwelling, including the land on which the dwelling stands not to exceed one acre, and includes a mobile home that has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation, posts or blocks, with fixed pipe, connections with sewer, water, or other utilities. "Residence" includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming reimbursement can establish that his or her share represents the specific unit or portion of the structure in which he or she resides. "Residence" also includes a single-family dwelling situated upon lands the fee of which is vested in the United States or an instrumentality of the United States including an Indian tribe or in the state of Washington.

NEW SECTION. Sec. 3. A person must make and file a claim for a credit under section 1 of this act at the time the taxes are due and solely upon forms as prescribed and furnished by the department. The person filing a claim for a credit shall deduct the amount of the credit from the tax payment.

If the department finds that the applicant does not meet the qualifications set forth in section 1 of this act, the department shall deny the credit, but the denial may be appealed to the department in the same manner as excise tax appeals under chapter 82.32 RCW. If the applicant had received a credit in prior years based on erroneous information, the credit amount must be collected subject to the penalties provided in RCW 84.40.130 for a period not to exceed three years.

The department and each local assessor shall publicize the qualifications and manner of making claims under this chapter through communications media, including such paid advertisements or notices as the department deems appropriate. Notice of the qualifications, method of making applications, and availability of further information must be included on or with property tax statements and revaluation notices for all residential property including mobile homes.

NEW SECTION. Sec. 4. (1) A person entitled to a credit or the person's attorney in fact must make and sign all claims for a credit.

(2) If the taxpayer is unable to submit his or her own claim, a duly authorized agent or a guardian or other person charged with the care of the person or property of the taxpayer must submit the claim.

(3) A person signing a false claim with the intent to defraud is subject to the penalties provided in chapter 9A.72 RCW for false swearing.

NEW SECTION. Sec. 5. Relief under this chapter is in addition to any other relief provided by law.

NEW SECTION. Sec. 6. (1) The department shall adopt such rules and prescribe such forms as are necessary and appropriate for implementation and administration of this chapter.

(2) The department may conduct such audits of the administration of this chapter and the claims for credit filed under this chapter as it considers necessary.

NEW SECTION. Sec. 7. A person is entitled to reimbursement of state retail sales and use taxes paid in the calendar year preceding the calendar year in which a claim is filed, in accordance with the following:

(1) The person claiming the reimbursement or his or her spouse must have provided home schooling to or paid for private schooling for children living in the person's residence during the year in which the taxes were paid;

(2) The amount of the reimbursement shall be equal to the lesser of: (a) Two hundred fifty dollars; or (b) the total monetary expenditures made by the person for the purposes of providing home schooling or private schooling for children living in the person's residence during the year in which the taxes were paid. However, for expenditures made in 1995, the total reimbursement may not exceed one hundred twenty-five dollars; and

(3) The person claiming the reimbursement must provide proof of the requirements of this chapter as provided by rule of the department.

NEW SECTION. Sec. 8. The definitions in section 2 of this act apply equally to this chapter.

NEW SECTION. Sec. 9. A person must make and file a claim for reimbursement under section 6 of this act at any time during the year following the year taxes were paid and solely upon forms as prescribed and furnished by the department.

If the department finds that the applicant does not meet the qualifications set forth in this section, the department shall deny the reimbursement, but the denial may be appealed to the department in the same manner as excise tax appeals under chapter 82.32 RCW. If the applicant had received a reimbursement in prior years based on erroneous information, the reimbursed amount must be collected subject to the penalties provided in RCW 84.40.130 for a period not to exceed three years.

The department shall publicize the qualifications and manner of making claims under this chapter through communications media, including such paid advertisements or notices as the department deems appropriate.

NEW SECTION. Sec. 10. (1) A person entitled to a reimbursement or the person's attorney in fact must make and sign all claims for reimbursement.

(3) A person signing a false claim with the intent to defraud is subject to the penalties provided in chapter 9A.72 RCW for false swearing.

NEW SECTION. Sec. 11. Relief under this chapter is in addition to any other relief provided by law.

NEW SECTION. Sec. 12. The department shall adopt such rules and prescribe such forms as are necessary and appropriate for implementation and administration of this chapter.

NEW SECTION. Sec. 13. (1) Sections 1 through 6 of this act shall constitute a new chapter in Title 84 RCW.

(2) Sections 7 through 12 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 14. (1) Sections 1 through 6 of this act apply to taxes levied in 1995 for collection in 1996 and thereafter.

(2) Sections 7 through 12 of this act apply to expenditures made after July 1, 1995, and thereafter.

NEW SECTION. Sec. 15. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.