H‑0456.1   _____________________________________________

 

HOUSE BILL 1011

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Representatives Campbell, Conway, Benson, Mielke, Skinner, Pennington, DeBolt, Delvin, Ogden, Esser, Reardon, Linville, Pearson, Alexander, Barlean, Ericksen, Carrell, Morell, Dunn, Van Luven, O'Brien, Ahern and Talcott

 

Read first time 01/10/2001.  Referred to Committee on Finance.

_1      AN ACT Relating to property tax exemptions for persons with

_2  disabilities related to the performance of military duties;

_3  amending RCW 84.36.379, 84.36.381, and 84.36.383; and creating a

_4  new section.

     

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     

_6      Sec. 1.  RCW 84.36.379 and 2000 c 103 s 25 are each amended to read

_7  as follows:

_8      The legislature finds that the property tax exemption

_9  authorized by Article VII, section 10 of the state Constitution

10  should be made available on the basis of a retired person's

11  ability to pay property taxes((.  The legislature further finds))

12  and that the best measure of a retired person's ability to pay

13  taxes is that person's disposable income as defined in RCW

14  84.36.383.  The legislature further finds that veterans with one

15  hundred percent service-connected disabilities have given so much

16  to our country that they deserve property tax relief.

17 

                               p. 1                       HB 1011

 

_1      Sec. 2.  RCW 84.36.381 and 1998 c 333 s 1 are each amended to read

_2  as follows:

_3      A person shall be exempt from any legal obligation to pay all

_4  or a portion of the amount of excess and regular real property

_5  taxes due and payable in the year following the year in which a

_6  claim is filed, and thereafter, in accordance with the following:

_7      (1) The property taxes must have been imposed upon a residence

_8  which was occupied by the person claiming the exemption as a

_9  principal place of residence as of the time of filing:  PROVIDED,

10  That any person who sells, transfers, or is displaced from his or

11  her residence may transfer his or her exemption status to a

12  replacement residence, but no claimant shall receive an exemption

13  on more than one residence in any year:  PROVIDED FURTHER, That

14  confinement of the person to a hospital or nursing home shall not

15  disqualify the claim of exemption if:

16      (a) The residence is temporarily unoccupied;

17      (b) The residence is occupied by a spouse and/or a person

18  financially dependent on the claimant for support; or

19      (c) The residence is rented for the purpose of paying nursing

20  home or hospital costs;

21      (2) The person claiming the exemption must have owned, at the

22  time of filing, in fee, as a life estate, or by contract purchase,

23  the residence on which the property taxes have been imposed or if

24  the person claiming the exemption lives in a cooperative housing

25  association, corporation, or partnership, such person must own a

26  share therein representing the unit or portion of the structure in

27  which he or she resides.  For purposes of this subsection, a

28  residence owned by a marital community or owned by cotenants shall

29  be deemed to be owned by each spouse or cotenant, and any lease

30  for life shall be deemed a life estate;

31      (3) The person claiming the exemption must be sixty-one years

32  of age or older on December 31st of the year in which the

33  exemption claim is filed, or must have been, at the time of

34  filing, retired from regular gainful employment by reason of

35  physical disability:  PROVIDED, That any surviving spouse of a

36  person who was receiving an exemption at the time of the person's

37  death shall qualify if the surviving spouse is fifty-seven years

HB 1011                        p. 2

_1  of age or older and otherwise meets the requirements of this

_2  section;

_3      (4) Except for veterans of the armed forces of the United

_4  States with one hundred percent service-connected disabilities,

_5  the amount that the person shall be exempt from an obligation to

_6  pay shall be calculated on the basis of combined disposable

_7  income, as defined in RCW 84.36.383.  If the person claiming the

_8  exemption was retired for two months or more of the assessment

_9  year, the combined disposable income of such person shall be

10  calculated by multiplying the average monthly combined disposable

11  income of such person during the months such person was retired by

12  twelve.  If the income of the person claiming exemption is reduced

13  for two or more months of the assessment year by reason of the

14  death of the person's spouse, or when other substantial changes

15  occur in disposable income that are likely to continue for an

16  indefinite period of time, the combined disposable income of such

17  person shall be calculated by multiplying the average monthly

18  combined disposable income of such person after such occurrences

19  by twelve.  If it is necessary to estimate income to comply with

20  this subsection, the assessor may require confirming documentation

21  of such income prior to May 31 of the year following application;

22      (5)(a) A person who otherwise qualifies under this section and

23  has a combined disposable income of thirty thousand dollars or

24  less or who is a veteran of the armed forces of the United States

25  with a one hundred percent service-connected disability shall be

26  exempt from all excess property taxes; and

27      (b)(i) A person who otherwise qualifies under this section and

28  has a combined disposable income of twenty-four thousand dollars

29  or less but greater than eighteen thousand dollars shall be exempt

30  from all regular property taxes on the greater of forty thousand

31  dollars or thirty-five percent of the valuation of his or her

32  residence, but not to exceed sixty thousand dollars of the

33  valuation of his or her residence; or

34      (ii) A person who otherwise qualifies under this section and

35  has a combined disposable income of eighteen thousand dollars or

36  less or who is a veteran of the armed forces of the United States

37  with a one hundred percent service-connected disability shall be

38  exempt from all regular property taxes on the greater of fifty

                               p. 3                       HB 1011

_1  thousand dollars or sixty percent of the valuation of his or her

_2  residence; and

_3      (6) For a person who otherwise qualifies under this section and

_4  has a combined disposable income of thirty thousand dollars or

_5  less or who is a veteran of the armed forces of the United States

_6  with a one hundred percent service-connected disability, the

_7  valuation of the residence shall be the assessed value of the

_8  residence on the later of January 1, 1995, or January 1st of the

_9  assessment year the person first qualifies under this section.  If

10  the person subsequently fails to qualify under this section only

11  for one year because of high income, this same valuation shall be

12  used upon requalification.  If the person fails to qualify for more

13  than one year in succession because of high income or fails to

14  qualify for any other reason, the valuation upon requalification

15  shall be the assessed value on January 1st of the assessment year

16  in which the person requalifies.  If the person transfers the

17  exemption under this section to a different residence, the

18  valuation of the different residence shall be the assessed value

19  of the different residence on January 1st of the assessment year

20  in which the person transfers the exemption.

21      In no event may the valuation under this subsection be greater

22  than the true and fair value of the residence on January 1st of

23  the assessment year.

24      This subsection does not apply to subsequent improvements to

25  the property in the year in which the improvements are made.

26  Subsequent improvements to the property shall be added to the

27  value otherwise determined under this subsection at their true and

28  fair value in the year in which they are made.

     

29      Sec. 3.  RCW 84.36.383 and 1999 c 358 s 18 are each amended to read

30  as follows:

31      As used in RCW 84.36.381 through 84.36.389, except where the

32  context clearly indicates a different meaning:

33      (1) The term "residence" means a single family dwelling unit

34  whether such unit be separate or part of a multiunit dwelling,

35  including the land on which such dwelling stands not to exceed one

36  acre.  The term shall also include a share ownership in a

37  cooperative housing association, corporation, or partnership if

HB 1011                        p. 4

_1  the person claiming exemption can establish that his or her share

_2  represents the specific unit or portion of such structure in which

_3  he or she resides.  The term shall also include a single family

_4  dwelling situated upon lands the fee of which is vested in the

_5  United States or any instrumentality thereof including an Indian

_6  tribe or in the state of Washington, and notwithstanding the

_7  provisions of RCW 84.04.080 and 84.04.090, such a residence shall

_8  be deemed real property.

_9      (2) The term "real property" shall also include a mobile home

10  which has substantially lost its identity as a mobile unit by

11  virtue of its being fixed in location upon land owned or leased by

12  the owner of the mobile home and placed on a foundation (posts or

13  blocks) with fixed pipe, connections with sewer, water, or other

14  utilities.  A mobile home located on land leased by the owner of the

15  mobile home is subject, for tax billing, payment, and collection

16  purposes, only to the personal property provisions of chapter

17  84.56 RCW and RCW 84.60.040.

18      (3) "Department" means the state department of revenue.

19      (4) "Combined disposable income" means the disposable income of

20  the person claiming the exemption, plus the disposable income of

21  his or her spouse, and the disposable income of each cotenant

22  occupying the residence for the assessment year, less amounts paid

23  by the person claiming the exemption or his or her spouse during

24  the assessment year for:

25      (a) Drugs supplied by prescription of a medical practitioner

26  authorized by the laws of this state or another jurisdiction to

27  issue prescriptions; and

28      (b) The treatment or care of either person received in the home

29  or in a nursing home.

30      (5) "Disposable income" means adjusted gross income as defined

31  in the federal internal revenue code, as amended prior to January

32  1, 1989, or such subsequent date as the director may provide by

33  rule consistent with the purpose of this section, plus all of the

34  following items to the extent they are not included in or have

35  been deducted from adjusted gross income:

36      (a) Capital gains, other than gain excluded from income under

37  section 121 of the federal internal revenue code to the extent it

38  is reinvested in a new principal residence;

                               p. 5                       HB 1011

 

_1      (b) Amounts deducted for loss;

_2      (c) Amounts deducted for depreciation;

_3      (d) Pension and annuity receipts;

_4      (e) Military pay and benefits other than attendant-care and

_5  medical-aid payments;

_6      (f) Veterans benefits other than attendant-care and medical-aid

_7  payments;

_8      (g) Federal social security act and railroad retirement

_9  benefits and benefits for disabilities related to the performance

10  of military duties;

11      (h) Dividend receipts; and

12      (i) Interest received on state and municipal bonds.

13      (6) "Cotenant" means a person who resides with the person

14  claiming the exemption and who has an ownership interest in the

15  residence.

     

16      NEW SECTION.  Sec. 4.  This act applies to taxes levied for

17  collection in 2002 and thereafter.

 

‑‑‑ END ‑‑‑

HB 1011                        p. 6