HOUSE BILL REPORT
SHB 1509
As Amended by the Senate
Title: An act relating to a property tax exemption for widows or widowers of honorably discharged veterans.
Brief Description: Providing a property tax exemption to widows or widowers of members of the military.
Sponsors: By House Committee on Finance (originally sponsored by Representatives Green, Conway, Orcutt, Appleton, Morrell, O'Brien, Lovick, McCoy, Kilmer, Kessler, McDermott, Campbell, Simpson, Hunt, Chase, P. Sullivan, Sells, Kirby, Kenney, Linville and Kagi; by request of Governor Gregoire).
Brief History:
Finance: 2/16/05, 3/7/05 [DPS].
Floor Activity:
Passed House: 3/10/05, 94-0.
Senate Amended.
Passed Senate: 4/23/05, 44-0.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON FINANCE
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 8 members: Representatives McIntire, Chair; Hunter, Vice Chair; Orcutt, Ranking Minority Member; Roach, Assistant Ranking Minority Member; Conway, Ericksen, Hasegawa and Santos.
Staff: Rick Peterson (786-7150).
Background:
All real and personal property in this state is subject to property tax each year based on its
value, unless a specific exemption is provided by law.
Some senior citizens and persons retired, due to disability, are entitled to property tax relief
on their principal residences. To qualify, a person must be 61 years old in the year of
application or retired from employment because of a disability, own his or her principal
residence, and have a disposable income of less than $35,000 a year. Persons meeting these
criteria are entitled to partial property tax exemptions and a valuation freeze.
Summary of Substitute Bill:
Retired widows or widowers of certain veterans are eligible for property tax relief on their
principal residence according to the following schedule:
1. income less than $32,000 - exempt from all property taxes on first $200,000 of value;
2. income between $32,001 and $40,000 - exempt from all property taxes on first $150,000
of value; or
3. income between $40,001 and $50,000 - exempt from all property taxes on first $100,000
of value.
In addition, the assessed value of the residence of all eligible widows and widowers is frozen
at the value when first eligible for the program. An eligible widow or widower may also
transfer the frozen value under the regular senior property tax relief program to this program
The retired widow or widower must be at least age 61 when they apply for relief and must be
a widow or widower of a veteran that: died as a result of a service-connected disability; was
rated as 100 percent disabled for the 10 years prior to death; was a prisoner of war and rated
as 100 percent disabled for at least one year prior to death; died while on active duty; or died
in active military training status. The retired widow or widower cannot remarry.
Veterans are persons who were honorably discharged or discharged for physical reasons with
an honorable record from the armed forces of the United States and served during periods of
war or between World War I and World War II. Women's air force service pilots and certain
merchant mariners are eligible.
The procedures for application and calculation of income are the same as for the current
senior citizen and persons retired due to disability property tax relief program.
This change first applies to property tax due for collection in 2006.
EFFECT OF SENATE AMENDMENT(S):
The property tax exemption is changed to a grant program. An appropriation of $276,000 is
made to the Department for grants. Participants in the program must have income below
$40,000 rather than $50,000. The amount of the tax relief is reduced.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: The bill recognizes the service and sacrifices made by our veterans and the need to support their families. The bill is a small step in recognizing this sacrifice. The bill brings dignity to those who have given so much. The bill targets a small but needy part of the veteran community.
Testimony Against: None.
Persons Testifying: Representative Green, prime sponsor; Antonia Ginatta, Office of the Govenor; Dan Gogerty, Chosen Few and Veterans Legislation Coalition; and John Lee, Washington State Department of Veterans Affairs.