SENATE BILL REPORT

ESB 6874

BYSenators Benitz, West, Anderson and Bluechel

Modifying property tax deferrals and exemptions.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1990; February 6, 1990

Majority Report:     Do pass.

     Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bluechel, Cantu, Fleming, Hayner, Johnson, Lee, Newhouse, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Terry Wilson (786-7715)

                February 14, 1990

AS PASSED SENATE, FEBRUARY 13, 1990

BACKGROUND:

Senior citizens at least 62 years old and persons retired because of physical disability are authorized a partial property tax exemption on their principal residences and up to one acre of land on which they live, if their combined disposable household income is $18,000 or less, according to the following table:

!tp2,1,1 Income !tlExemption

$14,001 to $18,000!tlAll excess levies

$12,001 to $14,000!tl All excess levies

!tlRegular levy on greater of

!tl$24,000 or 30% of valuation

!tl($40,000 valuation maximum)

$12,000 or less !tlAll excess levies

!tlRegular levy on greater of

!tl$28,000 or 50% of valuation

Application is only required in the first year, but the claimant is required to inform the county assessor of any change in status.

Qualifying persons are authorized to defer any taxes and special assessments due on the residence up to 80 percent of the equity value in the residence.  The Department of Revenue reimburses local taxing districts the amount of their taxes and assessments deferred.  The total amount of taxes so deferred constitute a lien on the property and are due, with interest at 8 percent per year, upon sale or condemnation of the property, when the claimant ceases to reside on the property, or upon death of the claimant.

SUMMARY:

Application for exemption is required every two years.  Exemptions are increased according to the following table:

Income !tlExemption

$18,001 to $30,000 !tlAll excess levies

$14,001 to $18,000!tlAll excess levies

!tlRegular levy on the greater of

!tl$40,000 or 30% of valuation

!tl($100,000 maximum valuation)

$12,001 to $14,000 !tlAll excess levies

!tlRegular levy on greater of

!tl $40,000 or 40% of valuation

!tl($100,000 valuation maximum)

$12,000 or less!tlAll excess levies

!tlRegular levy on greater of

!tl $40,000 or 50% of valuation

!tl($100,000 maximum valuation)

The amount of property qualifying for deferral is increased to five acres.

County assessors are required to compile data in 1991 on the number of persons using the exemption and deferral programs, income levels, and residential valuations.  Results are to be reported to the Department of Revenue by March 1, 1992.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Senator Benitz, prime sponsor