VETO MESSAGE ON SB 6533-S

                   April 3, 1998

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval as to sections 2 and 3 of Engrossed Substitute Senate Bill No. 6533 entitled:

"AN ACT Relating to property tax exemptions and deferrals for senior citizens and persons retired for reasons of physical disability;"

     In order to make property tax exemptions available to more of our senior citizens, ESSB 6533 raises the income levels below which a senior's income must be to qualify for the exemption.  Under the bill, if a senior's annual income is $18,000 or less, the senior is exempted from all excess levies and regular levies on the greater of $50,000 or 60% of assessed valuation.  For seniors with annual income of $18,001 to $24,000, the exemption is from all excess levies and regular levies on the greater of $40,000 or 35% of assessed valuation.  All seniors with annual income below $30,000 are exempted from all excess levies.  The income limit to qualify for the property assessment freeze is raised from $28,000 to $30,000.

     I strongly support these increases to help our senior citizens cope with rising property values.  However, section 2 of the bill would allow health care insurance and veterans' military disability benefits to be deducted from the calculation of disposable income.  This disability provision would create a special and preferred source of income since other disabled seniors would not qualify.  It would also represent a precedent that others would likely seek in the future.  Section 2 also would change the definition of residence to include land up to five acres, if local land use regulations require.  Section 3 of the bill contained a technical change in the definition of residence required by the amendment in section 2.

     For these reasons, I have vetoed sections 2 and 3 of Engrossed Substitute Senate Bill No. 6533.

     With the exception of sections 2 and 3, Engrossed Substitute Senate Bill No. 6533 is approved.

                   Respectfully submitted,

                   Gary Locke

                   Governor