BILL REQ. #: H-0212.3
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/11/11. Referred to Committee on Ways & Means.
AN ACT Relating to the disposable income calculation for property tax relief programs for low-income, disabled, and retired persons; amending RCW 84.36.383; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 84.36.383 and 2010 c 106 s 307 are each amended to
read as follows:
As used in RCW 84.36.381 through 84.36.389, except where the
context clearly indicates a different meaning:
(1) The term "residence" means a single family dwelling unit
whether such unit be separate or part of a multiunit dwelling,
including the land on which such dwelling stands not to exceed one
acre, except that a residence includes any additional property up to a
total of five acres that comprises the residential parcel if this
larger parcel size is required under land use regulations. The term
also includes a share ownership in a cooperative housing association,
corporation, or partnership if the person claiming exemption can
establish that his or her share represents the specific unit or portion
of such 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 is deemed real
property.
(2) The term "real property" 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. A mobile home
located on land leased by the owner of the mobile home is subject, for
tax billing, payment, and collection purposes, only to the personal
property provisions of chapter 84.56 RCW and RCW 84.60.040.
(3) "Department" means the state department of revenue.
(4) "Combined disposable income" means the disposable income of the
person claiming the exemption, plus the disposable income of his or her
spouse or domestic partner, and the disposable income of each cotenant
occupying the residence for the assessment year, less amounts paid by
the person claiming the exemption or his or her spouse or domestic
partner during the assessment year for:
(a) Drugs supplied by prescription of a medical practitioner
authorized by the laws of this state or another jurisdiction to issue
prescriptions;
(b) The treatment or care of either person received in the home or
in a nursing home, boarding home, or adult family home; and
(c) Health care insurance premiums for medicare under Title XVIII
of the social security act and medigap or medicare supplement insurance
premiums.
(5) "Disposable income" means adjusted gross income as defined in
the federal internal revenue code, as amended prior to January 1, 1989,
or such subsequent date as the director may provide by rule consistent
with the purpose of this section, plus all of the following items to
the extent they are not included in or have been deducted from adjusted
gross income:
(a) Capital gains, other than gain excluded from income under
section 121 of the federal internal revenue code to the extent it is
reinvested in a new principal residence;
(b) Amounts deducted for loss;
(c) Amounts deducted for depreciation;
(d) Pension and annuity receipts;
(e) Military pay and benefits other than attendant-care and
medical-aid payments;
(f) Veterans benefits, other than:
(i) Attendant-care payments;
(ii) Medical-aid payments;
(iii) Disability compensation, as defined in Title 38, part 3,
section 3.4 of the code of federal regulations, as of January 1, 2008;
and
(iv) Dependency and indemnity compensation, as defined in Title 38,
part 3, section 3.5 of the code of federal regulations, as of January
1, 2008;
(g) Federal social security act and railroad retirement benefits;
however, social security act disability benefits are not included;
(h) Dividend receipts; and
(i) Interest received on state and municipal bonds.
(6) "Cotenant" means a person who resides with the person claiming
the exemption and who has an ownership interest in the residence.
(7) "Disability" has the same meaning as provided in 42 U.S.C. Sec.
423(d)(1)(A) as amended prior to January 1, 2005, or such subsequent
date as the department may provide by rule consistent with the purpose
of this section.
NEW SECTION. Sec. 2 This act applies to taxes levied for
collection in 2012 and thereafter.