S-1283.1S-0354.1 SUBSTITUTE SENATE BILL 5337 State of Washington 67th Legislature 2021 Regular Session By Senate Ways & Means (originally sponsored by Senators Wilson, L., Gildon, Rivers, Wagoner, and Wilson, J.)J. READ FIRST TIME 02/22/21.
Read first time 01/25/21.
Referred to Committee on Ways & Means.
amending RCW 84.36.385;
(1) "Combined"Base disposablethreshold income"1" means the$35,000 disposableas incomeadjusted ofby theinflation personbeginning claimingwith thetaxes exemption,levied plusfor thecollection disposablein incomecalendar ofyear his2022 or her spouse or domestic partner, and thethereafter. disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for:
Base threshold 1 must be adjusted for inflation beginning with taxes levied for collection in calendar year 2022 and every five years thereafter.
(2) "Base threshold 2" means $40,000 as adjusted by inflation beginning with taxes levied for collection in calendar year 2022 and thereafter.
Base threshold 2 must be adjusted for inflation beginning with taxes levied for collection in calendar year 2022 and every five years thereafter.
(3) "Base threshold 3" means $45,000 as adjusted by inflation beginning with taxes levied for collection in calendar year 2022 and thereafter.
Base threshold 3 must be adjusted for inflation beginning p.
1 SB 5337 with taxes levied for collection in calendar year 2022 and every five years thereafter.
(4) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for:
and p.(c) Health care insurance premiums for medicare under Title XVIII of the social security act.
1(((2))) SSB(5) 5337"Cotenant" (c)means Healtha careperson insurancewho premiumsresides forwith medicarethe underperson Titleclaiming XVIIIthe ofexemption theand socialwho securityhas act.an ownership interest in the residence.
(2)(((3))) "Cotenant"(6) "County median household income" means athe personmedian whohousehold residesincome withestimates for the personstate claimingof Washington by county of the exemptionlegal andaddress whoof hasthe anprincipal ownershipplace interestof inresidence, as published by the residence.office of financial management.
(3)(((4))) "County(7) median"Department" household income" means the median household income estimates for the state ofdepartment Washington by county of therevenue. legal address of the principal place of residence, as published by the office of financial management.
(4)(((5))) "Department"(8) means"Disability" has the statesame departmentmeaning ofas revenue.provided in 42 U.S.C.
(5) "Disability" has the same meaning as provided in 42 U.S.C.
(6)(((6))) (9) "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:
(e)p. Military pay and benefits other than attendant-care and medical-aid payments;
2 SB 5337 (e) Military pay and benefits other than attendant-care and medical-aid payments;
p.(((7))) (10) "Income threshold 1" means:
2 SSB 5337 (7) "Income threshold 1" means((:
and (b) For taxes levied for collection in calendar year 2020 and thereafter,))thereafter, a combined disposable income equal to the greater of (("income threshold 1"1")) base threshold 1 for the previous year))year $35,000 or forty-five percent of the county median household income, adjusted every five years beginning August 1, 2019, as provided in RCW 84.36.385(8).
(8)(((8))) (11) "Income threshold 2" means((:means:
and (b) For taxes levied for collection in calendar year 2020 and thereafter,))thereafter, a combined disposable income equal to the greater of (("income threshold 2"2")) base threshold 2 for the previous year))year $40,000 or fifty-five percent of the county median household income, adjusted every five years beginning August 1, 2019, as provided in RCW 84.36.385(8).
(9)(((9))) (12) "Income threshold 3" means((:means:
and (b) For taxes levied for collection in calendar year 2020 and thereafter,))thereafter, a combined disposable income equal to the greater of (("incomep. threshold 3" for the previous year)) $45,000 or sixty-five percent of the county median household income, adjusted every five years beginning August 1, 2019, as provided in RCW 84.36.385(8).
(10)3 "PrincipalSB place5337 of(("income residence"threshold means3")) abase residencethreshold occupied3 for morethe thanprevious sixyear monthsor eachsixty-five calendarpercent yearof bythe acounty personmedian claiminghousehold anincome, exemptionadjusted underevery five years beginning August 1, 2019, as provided in RCW 84.36.381.84.36.385(8).
(11)(((10))) The(13) term"Inflation" "real property" also includes a mobile home which has substantiallythe lostsame itsmeaning identity as aprovided mobile unit by virtue of its being fixed in locationRCW upon84.55.005. 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.
(14) "Principal place of residence" means a residence occupied for more than six months each calendar year by a person claiming an exemption under RCW 84.36.381.
(((11))) (15) The term "real property" also includes 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.
p.(((12))) (16) The term "residence" means 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, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations.
3 SSB 5337 (12) The term "residence" means 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, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations.
NEW SECTION.
RCWThis 84.36.385act andapplies 2020to ctaxes 209levied sfor 2collection arein eachcalendar amendedyear to2022 readand asthereafter. follows:
(1) A claim for exemption under RCW 84.36.381 as now or hereafter amended, may be made and filed at any time during the year for exemption from taxes payable the following year and thereafter and solely upon forms as prescribed and furnished by the department of revenue.
However, an exemption from tax under RCW 84.36.381 continues for no more than six years unless a renewal application is filed as provided in subsection (3) of this section.
(2) A person granted an exemption under RCW 84.36.381 must inform the county assessor of any change in status affecting the person's entitlement to the exemption on forms prescribed and furnished by the department of revenue.
(3) Each person exempt from taxes under RCW 84.36.381 in 1993 and thereafter must file with the county assessor a renewal application not later than December 31 of the year the assessor notifies such person of the requirement to file the renewal application.
Renewal applications must be on forms prescribed and furnished by the department of revenue.
(4) At least once every six years, the county assessor must notify those persons receiving an exemption from taxes under RCW 84.36.381 of the requirement to file a renewal application.
The county assessor may also require a renewal application following an amendment of the income requirements set forth in RCW 84.36.381.
4 SSBSB 5337 (5)NEW IfSECTION. the assessor finds that the applicant does not meet the qualifications as set forth in RCW 84.36.381, as now or hereafter amended, the claim or exemption must be denied but such denial is subject to appeal under the provisions of RCW 84.48.010 and in accordance with the provisions of RCW 84.40.038.
If the applicant had received exemption in prior years based on erroneous information, the taxes must be collected subject to penalties as provided in RCW 84.40.130 for a period of not to exceed five years.
(6) The department and each local assessor is hereby directed to publicize the qualifications and manner of making claims under RCW 84.36.381 through 84.36.389, through communications media, including such paid advertisements or notices as it deems appropriate.
Notice of the qualifications, method of making applications, the penalties for not reporting a change in status, and availability of further information must be included on or with property tax statements and revaluation notices for all residential property including mobile homes, except rental properties.
(7) The department must authorize an option for electronic filing of applications and renewal applications for the exemption under RCW 84.36.381.
(8) Beginning August 1, 2019, and by March 1st every fifth year thereafter, the department must publish updated income thresholds.
The adjusted thresholds must be rounded up to the nearest one thousand dollars.
If the income threshold adjustment is negative, the income threshold for the prior year continues to apply.
The department must adjust income thresholds for each county to reflect the most recent year available of estimated county median household incomes, including preliminary estimates or projections, as published by the office of financial management.
For the purposes of this subsection, "county median household income" has the same meaning as provided in RCW 84.36.383.
(9) Beginning with the adjustment made by March 1, 2024, as provided in subsection (8) of this section, and every ((second adjustment)) fifth year thereafter, if an income threshold in a county is not adjusted based on percentage of county median income, then the income threshold must be adjusted based on the growth of the consumer price index for all urban consumers (CPI-U) for the prior twelve month period as published by the United States bureau of labor statistics.
In no case may the adjustment be greater than one percent.
The adjusted thresholds must be rounded to the nearest one p.
5 SSB 5337 dollar.
If the income threshold adjustment is negative, the income threshold for the prior year continues to apply.
NEW SECTION.
This act applies to taxes levied for collection in calendar year 2022 and thereafter.
NEW SECTION.
Sec.
4.
65 SSBSB 5337