HOUSE BILL REPORT

                  HB 2280

             As Reported By House Committee On:

                           Revenue

Title:  An act relating to the definition of residence for property tax relief for senior citizens and disabled persons.

Brief Description:  Increasing the minimum lot size for property tax relief for senior citizens and disabled persons.

Sponsors:  Representatives Holm, B. Thomas, Sheldon, Jones, Kessler and J. Kohl.

Brief History:

  Reported by House Committee on:

Revenue, February 5, 1994, DPS.

HOUSE COMMITTEE ON REVENUE

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 12 members:  Representatives G. Fisher, Chair; Holm, Vice Chair; Foreman, Ranking Minority Member; Anderson; Caver; Leonard; Romero; Rust; Silver; Talcott; Thibaudeau and Wang.

Staff:  Rick Peterson (786-7150).

Background:  For property tax purposes, property is assessed at its true and fair market value, unless the property qualifies under a special tax relief program. 

Some senior citizens and persons retired due to disability are entitled to property tax relief as exemptions and deferrals of taxes on their principal residences.  To qualify, a person must be 61 in the year of application or retired from employment because of a physical disability.  They must also own their principal residence and have disposable income below certain levels.  Eligible persons with incomes less than $26,000 receive partial exemptions of tax.  Eligible persons with incomes less than $30,000 may defer taxes.  

These property tax deferrals and exemptions apply only to the principal residence and the land on which it stands, not to exceed one acre.

Summary of Substitute Bill:  The bill increases the maximum lot size for property tax relief for senior citizens and persons retired due to disability.  The exempt portion of the lot may not exceed the lesser of five acres or the minimum legal lot size according to laws or regulations affecting the residence.

Substitute Bill Compared to Original Bill:   The substitute bill limits the acreage to the lesser of five acres or the minimum lot size.  The original bill allowed the greater of one acre or minimum lot size.

Fiscal Note:  Available.  Requested for substitute bill on February 7, 1994.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.  The bill is effective for taxes levied for collection in 1995 and thereafter.

Testimony For:   This bill would benefit the many seniors with mobile homes located on parcels larger than one acre.  They cannot readily move their homes. 

Testimony Against:  None.

Witnesses:  Representative Barbara Holm, prime sponsor; Arnold Livingston, Mobilehome Owners' Tenant Association; and Fred Saeger, Washington Association of County Officials.