Brief Description: Regarding the property tax exemption for seniors and for persons retired due to disability.

Sponsors: Senators Haugen, Oke, Berkey, Swecker, Eide, Mulliken, Spanel, Kline, Rasmussen, McAuliffe, Shin and Fairley.

Senate Committee on Ways & Means
House Committee on Finance

Background: Persons are allowed to defer payment of their property taxes on their personal residence if they are 60 years of age or older or retired because of physical disability and their disposable income is $40,000 or less. The deferral generally applies to taxes on one acre of land but is increased to up to five acres of land if zoning requires this larger parcel size.

In addition to the deferral, a person who is at least 61 years of age in the year of application, retired due to disability, or a veteran of the armed forces of the United States with 100 percent service connected disability is entitled to both a freeze on the value and a partial property tax exemption on the person's personal residence if disposable income is $35,000 or less. The valuation limit and exemption apply to the residence and up to one acre of land on which it is situated.

Summary: The one-acre limitation on residential property eligible for the senior citizen property tax exemption program is increased to five acres of land if zoning requires this larger parcel size. The bill applies to taxes levied for collection in 2007 and thereafter.

Votes on Final Passage:

Senate      46   0
House      98   0

Effective:   June 7, 2006