2425-S AMS WM S5372.1
SHB 2425 - S COMM AMD
By Committee on Ways & Means
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 84.36.381 and 1993 c 178 s 1 are each amended to read as follows:
A person shall be exempt from any legal obligation to pay all or a portion of the amount of excess and regular real property taxes due and payable in the year following the year in which a claim is filed, and thereafter, in accordance with the following:
(1) The property taxes
must have been imposed upon a residence which was occupied by the person
claiming the exemption as a principal place of residence as of ((January 1st
of the year for which the exemption is claimed)) the time of filing:
PROVIDED, That any person who sells, transfers, or is displaced from his or her
residence may transfer his or her exemption status to a replacement residence,
but no claimant shall receive an exemption on more than one residence in any
year: PROVIDED FURTHER, That confinement of the person to a hospital or
nursing home shall not disqualify the claim of exemption if:
(a) The residence is temporarily unoccupied;
(b) The residence is occupied by a spouse and/or a person financially dependent on the claimant for support; or
(c) The residence is rented for the purpose of paying nursing home or hospital costs;
(2) The person claiming the exemption must have owned, at the time of filing, in fee, as a life estate, or by contract purchase, the residence on which the property taxes have been imposed or if the person claiming the exemption lives in a cooperative housing association, corporation, or partnership, such person must own a share therein representing the unit or portion of the structure in which he or she resides. For purposes of this subsection, a residence owned by a marital community or owned by cotenants shall be deemed to be owned by each spouse or cotenant, and any lease for life shall be deemed a life estate;
(3) The person claiming the exemption must be sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or must have been, at the time of filing, retired from regular gainful employment by reason of physical disability: PROVIDED, That any surviving spouse of a person who was receiving an exemption at the time of the person's death shall qualify if the surviving spouse is fifty-seven years of age or older and otherwise meets the requirements of this section;
(4) The amount that the
person shall be exempt from an obligation to pay shall be calculated on the
basis of combined disposable income, as defined in RCW 84.36.383. If the
person claiming the exemption was retired for two months or more of the ((preceding))
assessment year, the combined disposable income of such person shall be
calculated by multiplying the average monthly combined disposable income of
such person during the months such person was retired by twelve. If the
income of the person claiming exemption is reduced for two or more months of
the ((preceding)) assessment year by reason of the death of the
person's spouse, or when other substantial changes occur in disposable
income that are likely to continue for an indefinite period of time, the
combined disposable income of such person shall be calculated by multiplying
the average monthly combined disposable income of such person after ((the
death of the spouse)) such occurrences by twelve. If it is
necessary to estimate income to comply with this subsection, the assessor may
require confirming documentation of such income prior to May 31 of the year
following application.
(5)(a) A person who otherwise qualifies under this section and has a combined disposable income of twenty-six thousand dollars or less shall be exempt from all excess property taxes; and
(b)(i) A person who otherwise qualifies under this section and has a combined disposable income of eighteen thousand dollars or less but greater than fifteen thousand dollars shall be exempt from all regular property taxes on the greater of thirty thousand dollars or thirty percent of the valuation of his or her residence, but not to exceed fifty thousand dollars of the valuation of his or her residence; or
(ii) A person who otherwise qualifies under this section and has a combined disposable income of fifteen thousand dollars or less shall be exempt from all regular property taxes on the greater of thirty-four thousand dollars or fifty percent of the valuation of his or her residence.
Sec. 2. RCW 84.36.383 and 1991 c 213 s 4 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" shall mean 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. The term shall also include 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 shall also include 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 ((or 84.40.250)), such a residence shall be deemed real
property.
(2) The term "real property" shall also include 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: PROVIDED, That a mobile home located on land leased by the owner of the mobile home shall be 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) ((The term
"preceding calendar year" shall mean the calendar year preceding the
year in which the claim for exemption is to be made.
(4))) "Department" shall mean the state
department of revenue.
(((5))) (4)
"Combined disposable income" means the disposable income of the
person claiming the exemption, plus the disposable income of his or her spouse,
and the disposable income of each cotenant occupying the residence for the ((preceding
calendar)) assessment year, less amounts paid by the person claiming
the exemption or his or her spouse during the ((previous)) assessment
year for the treatment or care of either person received in the home or in a
nursing home.
(((6))) (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 nonrecognized gain on the sale of a principal residence under section 1034 of the federal internal revenue code, or 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 attendant-care and medical-aid payments;
(g) Federal social security act and railroad retirement benefits;
(h) Dividend receipts; and
(i) Interest received on state and municipal bonds.
(((7))) (6)
"Cotenant" means a person who resides with the person claiming the
exemption and who has an ownership interest in the residence.
NEW SECTION. Sec. 3. This act is effective for taxes levied for collection in 1995 and thereafter."
SHB 2425 - S COMM AMD
By Committee on Ways & Means
On page 1, line 2 of the title, after "work;" strike the remainder of the title and insert "amending RCW 84.36.381 and 84.36.383; and creating a new section."
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