SENATE BILL REPORT

SB 5798

BYSenators Rasmussen, Pullen, McDonald, Talmadge, Barr, Conner and Metcalf

Raising the homestead exemption.

Senate Committee on Law & Justice

Senate Hearing Date(s):February 22, 1989; February 23, 1989

Majority Report:  Do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Madsen, Nelson, Niemi, Rasmussen, Rinehart, Talmadge.

Senate Staff:Cliff Peterson (786-7457)

                  January 31, 1990

AS PASSED SENATE, JANUARY 31, 1990

BACKGROUND:

A homestead is automatically protected from creditors' attachment and execution actions.  Homestead exemption property may consist of the house or mobile home in which the owner resides, appurtenant buildings and the land on which they are situated, or land owned with the intention of placing a home or mobile home on it for residence purposes.

Currently the value of the homestead property which is exempt from execution is limited to the lesser of (1) the total net value of the lands, home, mobile home, and improvements owned or (2) $30,000.

It is suggested that the homestead exemption amount be increased.

SUMMARY:

The homestead exemption amount is increased to $35,000.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one