AN ACT
Relating to the property taxation of senior citizens and persons retired
because of physical disability; amending RCW 84.36.381; and declaring an
emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.36.381 and 1995 1st sp.s. c 8 s 1 are each amended to read as follows:
A
person shall be exempt from any legal obligation to pay all or a portion of the
amount of excess and regular real property taxes due and payable in the year
following the year in which a claim is filed, and thereafter, in accordance
with the following:
(1)
The property taxes must have been imposed upon a residence which was occupied
by the person claiming the exemption as a principal place of residence as of
the time of filing: PROVIDED, That any person who sells, transfers, or is
displaced from his or her residence may transfer his or her exemption status to
a replacement residence, but no claimant shall receive an exemption on more
than one residence in any year: PROVIDED FURTHER, That confinement of the
person to a hospital or nursing home shall not disqualify the claim of
exemption if:
(a)
The residence is temporarily unoccupied;
(b)
The residence is occupied by a spouse and/or a person financially dependent on
the claimant for support; or
(c)
The residence is rented for the purpose of paying nursing home or hospital
costs;
(2)
The person claiming the exemption 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 exemption lives
in a cooperative housing association, corporation, or partnership, such person
must own a share therein representing the unit or portion of the structure in
which he or she resides. For purposes of this subsection, a residence owned by
a marital community or owned by cotenants shall be deemed to be owned by each
spouse or cotenant, and any lease for life shall be deemed a life estate;
(3)
The person claiming the exemption must be sixty-one years of age or older on
December 31st of the year in which the exemption claim is filed, or must have
been, at the time of filing, retired from regular gainful employment by reason
of physical disability: PROVIDED, That any surviving spouse of a person who
was receiving an exemption at the time of the person's death shall qualify if
the surviving spouse is fifty-seven years of age or older and otherwise meets
the requirements of this section;
(4)
The amount that the person shall be exempt from an obligation to pay shall be
calculated on the basis of combined disposable income, as defined in RCW
84.36.383. If the person claiming the exemption was retired for two months or
more of the assessment year, the combined disposable income of such person
shall be calculated by multiplying the average monthly combined disposable
income of such person during the months such person was retired by twelve. If
the income of the person claiming exemption is reduced for two or more months
of the assessment year by reason of the death of the person's spouse, or when
other substantial changes occur in disposable income that are likely to
continue for an indefinite period of time, the combined disposable income of
such person shall be calculated by multiplying the average monthly combined
disposable income of such person after such occurrences by twelve. If it is
necessary to estimate income to comply with this subsection, the assessor may
require confirming documentation of such income prior to May 31 of the year
following application;
(5)(a)
A person who otherwise qualifies under this section and has a combined
disposable income of twenty-eight thousand dollars or less shall be exempt from
all excess property taxes; and
(b)(i)
A person who otherwise qualifies under this section and has a combined
disposable income of eighteen thousand dollars or less but greater than fifteen
thousand dollars shall be exempt from all regular property taxes on the greater
of thirty thousand dollars or thirty percent of the valuation of his or her
residence, but not to exceed fifty thousand dollars of the valuation of his or
her residence; or
(ii) A
person who otherwise qualifies under this section and has a combined disposable
income of fifteen thousand dollars or less shall be exempt from all regular
property taxes on the greater of thirty-four thousand dollars or fifty percent
of the valuation of his or her residence; and
(6)
For a person who otherwise qualifies under this section and has a combined
disposable income of twenty-eight thousand dollars or less, the valuation of
the residence shall be the ((true and fair)) assessed value of
the residence on the later of January 1, 1995, or January 1st of the assessment
year the person first qualifies under this section. If the person subsequently
fails to qualify under this section only for one year because of high income,
this same valuation shall be used upon requalification. If the person fails to
qualify for more than one year in succession because of high income or fails to
qualify for any other reason, the valuation upon requalification shall be the
((true and fair)) assessed value on January 1st of the assessment
year in which the person requalifies. If the person transfers the exemption
under this section to a different residence, the valuation of the different
residence shall be the ((true and fair)) assessed value of the
different residence on January 1st of the assessment year in which the
person transfers the exemption.
In no
event may the valuation under this subsection be greater than the true and fair
value of the residence on January 1st of the assessment year.
This
subsection does not apply to subsequent improvements to the property in the
year in which the improvements are made. Subsequent improvements to the
property shall be added to the value otherwise determined under this subsection
at their true and fair value in the year in which they are made.
NEW SECTION. Sec. 2. 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.
