Disabled veterans/prop. tax

AN ACT Relating to recognizing the tremendous sacrifices made by 1
our military veterans by phasing down the disability rating 2
requirements to ensure more disabled veterans are eligible for 3
property tax relief; amending RCW 84.36.381; and creating a new 4
section. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 84.36.381 and 2023 c 147 s 1 are each amended to 7
read as follows: 8
A person is exempt from any legal obligation to pay all or a 9
portion of the amount of excess and regular real property taxes due 10
and payable in the year following the year in which a claim is filed, 11
and thereafter, in accordance with the following: 12
(1)(a) The property taxes must have been imposed upon a residence 13
which was occupied by the person claiming the exemption as a 14
principal place of residence as of the time of filing. However, any 15
person who sells, transfers, or is displaced from his or her 16
residence may transfer his or her exemption status to a replacement 17
residence, but no claimant may receive an exemption on more than one 18
residence in any year. Moreover, confinement of the person to a 19
hospital, nursing home, assisted living facility, adult family home, 20
H-0104.3
HOUSE BILL 1106
State of Washington 69th Legislature 2025 Regular Session
By Representatives Barnard, Leavitt, Eslick, Penner, Klicker,
Richards, Shavers, Couture, McClintock, Callan, Marshall, Kloba,
Nance, and Simmons
Prefiled 12/20/24. Read first time 01/13/25. Referred to Committee
on Finance.
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or home of a relative for the purpose of long-term care does not 1
disqualify the claim of exemption if: 2
(i) The residence is temporarily unoccupied; 3
(ii) The residence is occupied by a spouse or a domestic partner 4
and/or a person financially dependent on the claimant for support; or5
(iii) The residence is rented for the purpose of paying nursing 6
home, hospital, assisted living facility, or adult family home costs.7
(b) For the purpose of this subsection (1), "relative" means any 8
individual related to the claimant by blood, marriage, or adoption;9
(2) The person claiming the exemption must have owned, at the 10
time of filing, in fee, as a life estate, or by contract purchase, 11
the residence on which the property taxes have been imposed or if the 12
person claiming the exemption lives in a cooperative housing 13
association, corporation, or partnership, such person must own a 14
share therein representing the unit or portion of the structure in 15
which he or she resides. For purposes of this subsection, a residence 16
owned by a marital community or state registered domestic partnership 17
or owned by cotenants is deemed to be owned by each spouse or each 18
domestic partner or each cotenant, and any lease for life is deemed a 19
life estate; 20
(3)(a) The person claiming the exemption must be:21
(i) Sixty-one years of age or older on December 31st of the year 22
in which the exemption claim is filed, or must have been, at the time 23
of filing, retired from regular gainful employment by reason of 24
disability; or 25
(ii)(A) A veteran of the armed forces of the United States 26
entitled to and receiving compensation from the United States 27
department of veterans affairs at: 28
(((A))) (I) A combined service-connected evaluation rating of 80 29
percent or higher; or 30
(((B))) (II) A total disability rating for a service-connected 31
disability without regard to evaluation percent. 32
(B)(I) Beginning January 1, 2026, until December 31, 2026, the 33
combined service-connected evaluation rating in (a)(ii)(A)(I) of this 34
subsection is 60 percent or higher;35
(II) Beginning January 1, 2027, until December 31, 2027, the 36
combined service-connected evaluation rating in (a)(ii)(A)(I) of this 37
subsection is 40 percent or higher;38
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(III) Beginning January 1, 2028, the combined service-connected 1
evaluation rating in (a)(ii)(A)(I) of this subsection is 20 percent 2
or higher.3
(b) However, any surviving spouse or surviving domestic partner 4
of a person who was receiving an exemption at the time of the 5
person's death will qualify if the surviving spouse or surviving 6
domestic partner is 57 years of age or older and otherwise meets the 7
requirements of this section; 8
(4)(a) The amount that the person is exempt from an obligation to 9
pay is calculated on the basis of combined disposable income, as 10
defined in RCW 84.36.383. 11
(b) If the person claiming the exemption was retired for two 12
months or more of the assessment year, the combined disposable income 13
of such person must be calculated by multiplying the average monthly 14
combined disposable income of such person during the months such 15
person was retired by 12. 16
(c) If the income of the person claiming exemption is reduced for 17
two or more months of the assessment year by reason of the death of 18
the person's spouse or the person's domestic partner, or when other 19
substantial changes occur in disposable income that are likely to 20
continue for an indefinite period of time, the combined disposable 21
income of such person must be calculated by multiplying the average 22
monthly combined disposable income of such person after such 23
occurrences by 12. 24
(d)(i) If the income of the person claiming the exemption 25
increases as a result of a cost-of-living adjustment to social 26
security benefits or supplemental security income in an amount that 27
would disqualify the applicant from eligibility, the applicant is not 28
disqualified but instead maintains eligibility. 29
(ii) The continued eligibility under this subsection applies to 30
applications for property taxes levied for collection in calendar 31
year 2024. 32
(e) If it is necessary to estimate income to comply with this 33
subsection (4), the assessor may require confirming documentation of 34
such income prior to May 31st of the year following application;35
(5)(a) A person who otherwise qualifies under this section and 36
has a combined disposable income equal to or less than income 37
threshold 3 is exempt from all excess property taxes, the additional 38
state property tax imposed under RCW 84.52.065(2), and the portion of 39
the regular property taxes authorized pursuant to RCW 84.55.050 and 40
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approved by the voters, if the legislative authority of the county or 1
city imposing the additional regular property taxes identified this 2
exemption in the ordinance placing the RCW 84.55.050 measure on the 3
ballot; and 4
(b)(i) A person who otherwise qualifies under this section and 5
has a combined disposable income equal to or less than income 6
threshold 2 but greater than income threshold 1 is exempt from all 7
regular property taxes on the greater of $50,000 or 35 percent of the 8
valuation of his or her residence, but not to exceed $70,000 of the 9
valuation of his or her residence; or 10
(ii) A person who otherwise qualifies under this section and has 11
a combined disposable income equal to or less than income threshold 1 12
is exempt from all regular property taxes on the greater of $60,000 13
or 60 percent of the valuation of his or her residence;14
(6)(a) For a person who otherwise qualifies under this section 15
and has a combined disposable income equal to or less than income 16
threshold 3, the valuation of the residence is the assessed value of 17
the residence on the later of January 1, 1995, or January 1st of the 18
assessment year the person first qualifies under this section. If the 19
person subsequently fails to qualify under this section only for one 20
year because of high income, this same valuation must be used upon 21
requalification. If the person fails to qualify for more than one 22
year in succession because of high income or fails to qualify for any 23
other reason, the valuation upon requalification is the assessed 24
value on January 1st of the assessment year in which the person 25
requalifies. If the person transfers the exemption under this section 26
to a different residence, the valuation of the different residence is 27
the assessed value of the different residence on January 1st of the 28
assessment year in which the person transfers the exemption.29
(b) In no event may the valuation under this subsection be 30
greater than the true and fair value of the residence on January 1st 31
of the assessment year. 32
(c) This subsection does not apply to subsequent improvements to 33
the property in the year in which the improvements are made. 34
Subsequent improvements to the property must be added to the value 35
otherwise determined under this subsection at their true and fair 36
value in the year in which they are made. 37
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NEW SECTION. Sec. 2. RCW 82.32.805 and 82.32.808 do not apply 1
to this act.2
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