BILL REQ. #:  H-3512.1 

Read first time 01/14/2004.   Referred to Committee on Finance.

     AN ACT Relating to exempting the surviving spouse of a fallen emergency responder from the state property tax levy; and adding a new section to chapter 84.36 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 84.36 RCW to read as follows:
     (1) The surviving spouse of a fallen emergency responder is exempt from any legal obligation to pay the state property tax levy on the surviving spouse's residence that is due and payable in the year following the year in which a claim is filed, and every year thereafter, in accordance with the following:
     (a) The state property tax levy must have been imposed upon a residence which was occupied by the surviving spouse claiming the exemption as a principal place of residence as of the time of filing.
     (b) Any surviving spouse 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.
     (c) Confinement of the surviving spouse to a hospital or nursing home shall not disqualify the claim of exemption if:
     (i) The residence is temporarily unoccupied;
     (ii) The residence is occupied by a person financially dependent on the claimant for support, or a spouse; or
     (iii) The residence is rented for the purpose of paying nursing home or hospital costs.
     (d) The surviving spouse 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 state property tax has been imposed or if the spouse claiming the exemption lives in a cooperative housing association, corporation, or partnership, the spouse must own a share 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.
     (e) A claim for exemption under this section shall be made and filed at any time during the year for exemption from state property taxes payable the following year and thereafter and solely upon forms as prescribed and furnished by the department of revenue. All claims for exemption shall be made and signed by the person entitled to the exemption, by his or her attorney in fact, or in the event the residence of the surviving spouse is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by such holder or by the owner, either before two witnesses or the county assessor or his or her deputy in the county where the property is located. If a claim for exemption is made by a spouse living in a cooperative housing association, corporation, or partnership, the claim shall be made and signed by the person entitled to the exemption and by the authorized agent of the cooperative. If the taxpayer is unable to submit his or her own claim, the claim shall be submitted by a duly authorized agent or by a guardian or other person charged with the care of the person or property of the taxpayer.
     (f) Any person signing a false claim with the intent to defraud or evade the payment of any tax is guilty of perjury under chapter 9A.72 RCW.
     (g) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption to which a claimant residing therein is entitled and the cooperative shall reduce any amount owed by the claimant to the cooperative by the exact amount of tax exemption or, if no amount is owed, the cooperative shall make payment to the claimant of the exact amount of exemption.
     (h) A remainderman or other person who would have otherwise paid the tax on real property that is the subject of an exemption granted under this section for an estate for life shall reduce the amount which would have been payable by the life tenant to the remainderman or other person to the extent of the exemption. If no amount is owed or separately stated as an obligation between these persons, the remainderman or other person shall make payment to the life tenant in the exact amount of the exemption.
     (2) For the purposes of this section, the following definitions apply unless the context clearly indicates otherwise.
     (a) "Fallen emergency responder" means a law enforcement officer or fire fighter who dies as a result of injuries sustained in the course of employment and was at the time of death, a member of the retirement system established in chapter 41.26 RCW or a commissioned employee of the Washington state patrol belonging to the Washington state patrol retirement system established in chapter 43.43 RCW. This determination shall be made consistent with Title 51 RCW by the department of labor and industries. The department of labor and industries shall notify the department of revenue. The department of revenue shall maintain a list of fallen emergency responders.
     (b) "Residence" means a single family dwelling unit whether the unit is separate or part of a multiunit dwelling, including the land on which the dwelling stands, but not to exceed one acre. The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the surviving spouse claiming the exemption can establish that his or her share represents the specific unit or portion of the structure in which he or she resides. The term also includes a single family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080 and 84.04.090, such a residence shall be deemed real property. The term also includes a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe, connections with sewer, water, or other utilities.