BILL REQ. #:  H-3468.1 

READ FIRST TIME 01/21/14.   

     AN ACT Relating to modifying the income thresholds for the exemption and deferral property tax relief programs for senior citizens and persons retired because of physical disability; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The legislature recognizes that property taxes impose a substantial financial burden on those with fixed incomes. The legislature further recognizes that property tax relief programs have considerable value in addressing this burden. However, the legislature also recognizes that property tax relief programs use static income thresholds that must be updated periodically to reflect the impact of inflation, and these thresholds do not reflect disparate income levels across the state. The legislature further recognizes that the definition of disposable income may not accurately reflect an individual's ability to pay property taxes. The legislature further recognizes that the assessed value limits in these programs do not reflect the substantial disparity in property values across the state. Therefore, the legislature recognizes that policy questions arise as to the appropriate thresholds and limits to use as part of the senior citizens, disabled persons, and veterans property tax relief programs, the timing and manner of adjustments to those thresholds and limits, and whether these programs should be modified in other substantive ways to better reflect their intended purpose.
     (2)(a) Therefore, it is the legislature's intent to have the department of revenue study the issues outlined in subsection (1) of this section relating to the senior citizens, disabled persons, and veterans property tax relief programs in RCW 84.36.381, et seq. and chapter 84.38 RCW, with input from the members of a task force. The task force is comprised of four members: (i) One person employed with the department of revenue; (ii) one person from an association representing county assessors; (iii) one person from an association representing persons retired by reason of age; and (iv) one person from an association representing veterans retired by reason of disability. The department of revenue must appoint the task force members. Legislative fiscal staff may provide technical assistance to the task force.
     (b) The task force must choose its chair from among its membership.
     (3) The task force review must include an analysis of the following:
     (a) Assessed property values by county, including per capita amounts;
     (b) Median income by county;
     (c) The revenue impact of the programs on the state and local taxing districts and taxpayers, including property tax shifts;
     (d) Changes in the average life expectancy and retirement age since the inception of the programs;
     (e) Changes in the amount of state and local property taxes paid as a percentage of personal income since the inception of the programs;
     (f) The passage of additional property tax relief programs that may be available to senior citizens and persons retired by reason of disability;
     (g) Any other data the task force deems necessary to properly evaluate and make recommendation on the property tax relief programs for senior citizens and persons retired by reason of disability.
     (4) By December 31, 2014, and in compliance with RCW 43.01.036, the department of revenue must submit a report to the appropriate fiscal committees of the legislature that details the department's findings and recommendations.
     (5) County assessors must provide data requested by the department to conduct the study required in this section in an electronic format accessible by the department within thirty days of the effective date of this section. County assessors must provide the department with the data at no cost to the department.

NEW SECTION.  Sec. 2   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.