Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Finance Committee |
HB 2756
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Brief Description: Allowing medicare supplement insurance premiums to be deducted from the calculation of disposable income for the purpose of qualifying for senior property tax programs.
Sponsors: Representatives Driscoll, Parker, Haler, Ormsby, Liias, Pettigrew, Kelley, Sullivan, Green, Moeller, Simpson, Darneille, Morrell, Pearson, Hurst, Chase and Santos.
Brief Summary of Bill |
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Hearing Date: 2/9/10
Staff: Susan Howson (786-7142).
Background:
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 age 61 in the year of application, or retired from employment because of a disability, or 100 percent disabled due to military service; must own his or her principal residence, and must have a disposable income of less than $35,000 a year. Persons meeting this criteria are entitled to partial property tax exemptions and a property valuation freeze. Disposable income is defined as the sum of federally-defined, adjusted gross income and the following, if not included: capital gains, deductions for loss, depreciation, pensions and annuities, military pay and benefits, veterans' benefits except attendant-care and medical-aid payments, veterans’ benefits awarded for service-connected disability, Social Security and federal railroad retirement benefits, dividends, and interest income.Some costs may be deducted from the disposable income total as follows: payments for the care of either spouse received in the home, a nursing home, boarding home or adult family home; payments for medicare insurance premiums, and payments for prescription drugs.
Summary of Bill:
Medicare supplement insurance premiums may be deducted from the combined disposable income total when computing the retired person property tax reduction.
Appropriation: None.
Fiscal Note: Preliminary fiscal note available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.