H-5286.1  _______________________________________________

                          HOUSE BILL 3166

          _______________________________________________

State of Washington      56th Legislature  2000 1^st Special Session

By Representatives Thomas, Dunshee, Woods, Rockefeller, Carrell, Conway, Delvin, Linville, Crouse, Fisher, McDonald, Edwards, Huff, Romero, Mulliken, Constantine, Pennington, Keiser, Scott, Reardon, Quall, Morris, Clements, Fortunato, Carlson, Sump, Wensman, Esser, Dunn, Van Luven, Anderson, Cooper, Gombosky, Kenney, Kastama, Lantz, Ogden, Ruderman, Stensen, Hurst, Lambert, G. Chandler, Ballasiotes, Radcliff, Talcott, Haigh, Kessler, Grant, Cody, Barlean, Schoesler, Mielke, Wood, Schual‑Berke, Regala, Miloscia, Edmonds, O'Brien, Wolfe, Lovick, Dickerson, Veloria, Benson, Sullivan, Alexander, Lisk, Pflug, Parlette, Koster, Campbell, Hankins and D. Schmidt

Read first time 03/21/2000.  Referred to Committee on Finance.

Providing a five hundred dollar credit against state property taxes for senior citizens and disabled persons.

    AN ACT Relating to providing a five hundred dollar credit against state property taxes for senior citizens and disabled persons eligible for property tax exemptions, without shifting taxes; amending RCW 84.36.381 and 84.52.080; and creating a new section.

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

    Sec. 1.  RCW 84.36.381 and 1998 c 333 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)) the person must own a share therein representing the unit or portion of the structure in which ((he or she)) the person 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)).  A surviving spouse of ((a)) the 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)) the person shall be calculated by multiplying the average monthly combined disposable income of ((such)) the person during the months ((such)) the 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)) the person shall be calculated by multiplying the average monthly combined disposable income of ((such)) the person after ((such)) the occurrences by twelve.  If it is necessary to estimate income to comply with this subsection, the assessor may require confirming documentation of ((such)) the income prior to May 31st of the year following application;

    (5)(a) A person who otherwise qualifies under this section and has a combined disposable income of thirty 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 twenty-four thousand dollars or less but greater than eighteen thousand dollars shall be exempt from all regular property taxes on the greater of forty thousand dollars or thirty-five percent of the valuation of ((his or her)) the residence, but not to exceed sixty thousand dollars of the valuation of ((his or her)) the residence; or

    (ii) A person who otherwise qualifies under this section and has a combined disposable income of eighteen thousand dollars or less shall be exempt from all regular property taxes on the greater of fifty thousand dollars or sixty percent of the valuation of ((his or her)) the residence; and

    (6)(a) For a person who otherwise qualifies under this section and has a combined disposable income of thirty thousand dollars or less, the valuation of the residence shall be the 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 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 assessed value of the different residence on January 1st of the assessment year in which the person transfers the exemption.

(b) 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.

(c) 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.

(7) A taxpayer who qualifies for exemption under this section shall be allowed a credit against the state levy equal to the tax imposed on the assessed value of the owner-occupied residence for the state levy not to exceed five hundred dollars.

    Sec. 2.  RCW 84.52.080 and 1989 c 378 s 16 are each amended to read as follows:

    (1) The ((county)) assessor shall extend the taxes upon the tax rolls in the form herein prescribed.  The rate percent necessary to raise the amounts of taxes levied for state and county purposes, and for purposes of taxing districts coextensive with the county, shall be computed upon the assessed value of the property of the county; the rate percent necessary to raise the amount of taxes levied for any taxing district within the county shall be computed upon the assessed value of the property of the district; all taxes assessed against any property shall be added together and extended on the rolls in a column headed consolidated or total tax.  In extending any tax, whenever it amounts to a fractional part of a cent greater than five mills it shall be made one cent, and whenever it amounts to five mills or less than five mills it shall be dropped.  The amount of all taxes shall be entered in the proper columns, as shown by entering the rate percent necessary to raise the consolidated or total tax and the total tax assessed against the property.

    (2) After entering the amounts under subsection (1) of this section, the assessor shall compute the amount of credit authorized under RCW 84.36.381.  The credit allowed on any property shall be extended on the rolls in a column headed tax credit.  The assessor shall subtract the amount of the credit from the total tax and enter this amount in a column headed tax payable.

(3) For the purpose of computing the rate necessary to raise the amount of any excess levy in a taxing district which has classified or designated forest land under chapter 84.33 RCW, other than the state, the ((county)) assessor shall add the district's timber assessed value, as defined in RCW 84.33.035, to the assessed value of the property((:  PROVIDED, That)).  For school districts maintenance and operations levies only one-half of the district's timber assessed value or eighty percent of the timber roll of ((such)) the district in calendar year 1983 as determined under chapter 84.33 RCW, whichever is greater, shall be added.

    (((3))) (4) Upon the completion of ((such)) the tax extension, it shall be the duty of the ((county)) assessor to make in each assessment book, tax roll or list a certificate in the following form:

    I, . . . . . ., assessor of . . . . . . county, state of Washington, do hereby certify that the foregoing is a correct list of taxes levied on the real and personal property in the county of . . . . . . for the year ((one)) two thousand ((nine hundred and)) . . . . . .

    Witness my hand this . . . . day of . . . . . ., ((19)). . .

                              .............. , ((County)) Assessor

    (((4))) (5) The ((county)) assessor shall deliver said tax rolls to the ((county)) treasurer, on or before the fifteenth day of January, taking receipt therefor, and at the same time the ((county)) assessor shall provide the ((county)) auditor with an abstract of the tax rolls showing the total amount of taxes collectible in each of the taxing districts.

NEW SECTION. Sec. 3.  Section 1 of this act applies to taxes levied for collection in 2001 and thereafter.

                            --- END ---