Z‑0547.1   _____________________________________________

 

HOUSE BILL 1574

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Representatives Jackley, Cairnes, Ruderman, Linville, Kessler, Keiser, Talcott, Conway, Schual‑Berke, Edmonds, Rockefeller, Dunshee, Wood, O'Brien, Darneille and Hurst; by request of Governor Locke

 

Read first time 01/30/2001.  Referred to Committee on Finance.

_1      AN ACT Relating to a property tax exemption from the state levy

_2  for real property occupied by senior citizens and persons retired

_3  by reason of disability; and amending RCW 84.36.381 and 84.36.387.

     

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     

_5      Sec. 1.  RCW 84.36.381 and 1998 c 333 s 1 are each amended to read

_6  as follows:

_7      A person shall be exempt from any legal obligation to pay all

_8  or a portion of the amount of excess and regular real property

_9  taxes due and payable in the year following the year in which a

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

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

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

13  principal place of residence as of the time of filing((: PROVIDED,

14  That)).  Any person who sells, transfers, or is displaced from his

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

16  replacement residence, but no claimant shall receive an exemption

17  on more than one residence in any year((:  PROVIDED FURTHER,

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_1  That)).  Confinement of the person to a hospital or nursing home

_2  shall not disqualify the claim of exemption if:

_3      (a) The residence is temporarily unoccupied;

_4      (b) The residence is occupied by a spouse and/or a person

_5  financially dependent on the claimant for support; or

_6      (c) The residence is rented for the purpose of paying nursing

_7  home or hospital costs;

_8      (2) The person claiming the exemption must have owned, at the

_9  time of filing, in fee, as a life estate, or by contract purchase,

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

11  the person claiming the exemption lives in a cooperative housing

12  association, corporation, or partnership, ((such)) the person must

13  own a share therein representing the unit or portion of the

14  structure in which ((he or she)) the person resides.  For purposes

15  of this subsection, a residence owned by a marital community or

16  owned by cotenants shall be deemed to be owned by each spouse or

17  cotenant, and any lease for life shall be deemed a life estate;

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

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

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

21  filing, retired from regular gainful employment by reason of

22  physical disability((:  PROVIDED, That any)).  A surviving spouse of

23  ((a)) the person who was receiving an exemption at the time of the

24  person's death shall qualify if the surviving spouse is fifty-

25  seven years of age or older and otherwise meets the requirements

26  of this section;

27      (4) The amount that the person shall be exempt from an

28  obligation to pay shall be calculated on the basis of combined

29  disposable income, as defined in RCW 84.36.383.  If the person

30  claiming the exemption was retired for two months or more of the

31  assessment year, the combined disposable income of ((such)) the

32  person shall be calculated by multiplying the average monthly

33  combined disposable income of ((such)) the person during the

34  months ((such)) the person was retired by twelve.  If the income of

35  the person claiming exemption is reduced for two or more months of

36  the assessment year by reason of the death of the person's spouse,

37  or when other substantial changes occur in disposable income that

38  are likely to continue for an indefinite period of time, the

HB 1574                        p. 2

_1  combined disposable income of ((such)) the person shall be

_2  calculated by multiplying the average monthly combined disposable

_3  income of ((such)) the person after such occurrences by twelve.  If

_4  it is necessary to estimate income to comply with this subsection,

_5  the assessor may require confirming documentation of ((such)) the

_6  income prior to May 31st of the year following application;

_7      (5)(a) A person who otherwise qualifies under this section and

_8  has a combined disposable income of thirty thousand dollars or

_9  less shall be exempt from all excess property taxes; and

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

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

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

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

14  dollars or thirty-five percent of the valuation of ((his or her))

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

16  valuation of ((his or her)) the residence; or

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

18  has a combined disposable income of eighteen thousand dollars or

19  less shall be exempt from all regular property taxes on the

20  greater of fifty thousand dollars or sixty percent of the

21  valuation of ((his or her)) the residence; and

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

23  has a combined disposable income of thirty thousand dollars or

24  less, the valuation of the residence shall be the assessed value

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

26  of the assessment year the person first qualifies under this

27  section.  If the person subsequently fails to qualify under this

28  section only for one year because of high income, this same

29  valuation shall be used upon requalification.  If the person fails

30  to qualify for more than one year in succession because of high

31  income or fails to qualify for any other reason, the valuation

32  upon requalification shall be the assessed value on January 1st of

33  the assessment year in which the person requalifies.  If the person

34  transfers the exemption under this section to a different

35  residence, the valuation of the different residence shall be the

36  assessed value of the different residence on January 1st of the

37  assessment year in which the person transfers the exemption.

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_1      In no event may the valuation under this subsection be greater

_2  than the true and fair value of the residence on January 1st of

_3  the assessment year.

_4      This subsection does not apply to subsequent improvements to

_5  the property in the year in which the improvements are made.

_6  Subsequent improvements to the property shall be added to the

_7  value otherwise determined under this subsection at their true and

_8  fair value in the year in which they are made.

_9      All taxpayers who qualify for exemption under this section

10  shall also be allowed a property tax exemption from the state levy

11  equal to the tax imposed on the assessed value of the owner-

12  occupied residential property for the state levy.

     

13      Sec. 2.  RCW 84.36.387 and 1992 c 206 s 14 are each amended to read

14  as follows:

15      (1) All claims for exemption under RCW 84.36.381 shall be made

16  and signed by the person entitled to the exemption, by ((his or

17  her)) the person's attorney in fact or in the event the residence

18  of ((such)) the person is under mortgage or purchase contract

19  requiring accumulation of reserves out of which the holder of the

20  mortgage or contract is required to pay real estate taxes, by

21  ((such)) the holder or by the owner, either before two witnesses

22  or the ((county)) assessor or ((his)) the assessor's deputy in the

23  county where the real property is located((:  PROVIDED, That)).  If a

24  claim for exemption is made by a person living in a cooperative

25  housing association, corporation, or partnership, ((such)) the

26  claim shall be made and signed by the person entitled to the

27  exemption and by the authorized agent of ((such)) the cooperative.

28      (2) If the taxpayer is unable to personally submit ((his own)) a

29  claim, the claim shall be submitted by a duly authorized agent or

30  by a guardian or other person charged with the care of the person

31  or property of ((such)) the taxpayer.

32      (3) All claims for exemption and renewal applications shall be

33  accompanied by ((such)) the documented verification of income as

34  shall be prescribed by rule adopted by the department of revenue.

35      (4) Any person signing a false claim with the intent to defraud

36  or evade the payment of any tax shall be guilty of the offense of

37  perjury.

HB 1574                        p. 4

 

_1      (5) The tax liability of a cooperative housing association,

_2  corporation, or partnership shall be reduced by the amount of tax

_3  exemption to which a claimant residing therein is entitled and

_4  ((such)) the cooperative shall reduce any amount owed by the

_5  claimant to the cooperative by ((such)) the exact amount of tax

_6  exemption or, if no amount be owed, the cooperative shall make

_7  payment to the claimant of ((such)) the exact amount of exemption.

_8      (6) A remainderman or other person who would have otherwise

_9  paid the tax on real property that is the subject of an exemption

10  granted under RCW 84.36.381 for an estate for life shall reduce

11  the amount which would have been payable by the life tenant to the

12  remainderman or other person to the extent of the exemption.  If no

13  amount is owed or separately stated as an obligation between these

14  persons, the remainderman or other person shall make payment to

15  the life tenant in the exact amount of the exemption.

 

‑‑‑ END ‑‑‑

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