SHB 1805 -
By Senators Kline, McCaslin
ADOPTED 04/11/2007
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 6.13.030 and 1999 c 403 s 4 are each amended to read
as follows:
A homestead may consist of lands, as described in RCW 6.13.010,
regardless of area, but the homestead exemption amount shall not exceed
the lesser of (1) the total net value of the lands, manufactured homes,
mobile home, improvements, and other personal property, as described in
RCW 6.13.010, or (2) the sum of ((forty)) one hundred twenty-five
thousand dollars in the case of lands, manufactured homes, mobile home,
and improvements, or the sum of fifteen thousand dollars in the case of
other personal property described in RCW 6.13.010, except where the
homestead is subject to execution, attachment, or seizure by or under
any legal process whatever to satisfy a judgment in favor of any state
for failure to pay that state's income tax on benefits received while
a resident of the state of Washington from a pension or other
retirement plan, in which event there shall be no dollar limit on the
value of the exemption.
Sec. 2 RCW 6.13.080 and 2005 c 292 s 4 are each amended to read
as follows:
The homestead exemption is not available against an execution or
forced sale in satisfaction of judgments obtained:
(1) On debts secured by mechanic's, laborer's, construction,
maritime, automobile repair, materialmen's or vendor's liens arising
out of and against the particular property claimed as a homestead;
(2) On debts secured (a) by security agreements describing as
collateral the property that is claimed as a homestead or (b) by
mortgages or deeds of trust on the premises that have been executed and
acknowledged by the husband and wife or by any unmarried claimant;
(3) On one spouse's or the community's debts existing at the time
of that spouse's bankruptcy filing where (a) bankruptcy is filed by
both spouses within a six-month period, other than in a joint case or
a case in which their assets are jointly administered, and (b) the
other spouse exempts property from property of the estate under the
bankruptcy exemption provisions of 11 U.S.C. Sec. 522(d);
(4) On debts arising from a lawful court order or decree or
administrative order establishing a child support obligation or
obligation to pay spousal maintenance;
(5) On debts owing to the state of Washington for recovery of
medical assistance correctly paid on behalf of an individual consistent
with 42 U.S.C. Sec. 1396p; ((or))
(6) On debts secured by a condominium's or homeowner association's
lien. In order for an association to be exempt under this provision,
the association must have provided a homeowner with notice that
nonpayment of the association's assessment may result in foreclosure of
the association lien and that the homestead protection under this
chapter shall not apply. An association has complied with this notice
requirement by mailing the notice, by first class mail, to the address
of the owner's lot or unit. The notice required in this subsection
shall be given within thirty days from the date the association learns
of a new owner, but in all cases the notice must be given prior to the
initiation of a foreclosure. The phrase "learns of a new owner" in
this subsection means actual knowledge of the identity of a homeowner
acquiring title after June 9, 1988, and does not require that an
association affirmatively ascertain the identity of a homeowner.
Failure to give the notice specified in this subsection affects an
association's lien only for debts accrued up to the time an association
complies with the notice provisions under this subsection; or
(7) On debts owed for taxes collected under chapters 82.08, 82.12,
and 82.14 RCW but not remitted to the department of revenue.
Sec. 3 RCW 6.13.090 and 1988 c 231 s 4 are each amended to read
as follows:
A judgment against the owner of a homestead shall become a lien on
the value of the homestead property in excess of the homestead
exemption from the time the judgment creditor records the judgment with
the recording officer of the county where the property is located.
However, if a judgment of a district court of this state has been
transferred to a superior court, the judgment becomes a lien from the
time of recording with such recording officer a duly certified abstract
of the record of such judgment as it appears in the office of the clerk
in which the transfer was originally filed. A department of revenue
tax warrant filed pursuant to RCW 82.32.210 shall become a lien on the
value of the homestead property in excess of the homestead exemption
from the time of filing in superior court."
SHB 1805 -
By Senators Kline, McCaslin
ADOPTED 04/11/2007
On page 1, line 1 of the title, after "amount;" strike the remainder of the title and insert "and amending RCW 6.13.030, 6.13.080, and 6.13.090."
EFFECT: The amendment adds manufactured homes to the homestead exemption and raises the exemption amount from $100,000 to $125,000. The amendment exempts the department of revenue from the homestead exemption for sales taxes collected by the property owner and held in trust. Taxes due that were not collected in trust would be subject to the homeowner exemption and would only be collected above the exemption amount.