Washington House Democrats

November 5, 2004

Senior Property-tax Relief Expanded

One of the last acts of the 2004 Legislature was to pass the largest expansion of senior citizen property-tax relief since state voters created the tax-relief program in 1967.

House Democrats worked for two years to expand property-tax relief for seniors, and made the issue one of our top 2004 priorities. But in the end the victory belonged to the entire Legislature -- and, of course, to the tens of thousands of additional senior citizens and disabled retirees who will now be eligible for much-needed tax relief.

By adjusting income limits and allowing common-sense deductions when seniors calculate eligibility for tax-relief, the measure signed into law (SB 5034) will provide relief to an estimated 40,000 additional senior citizen and disabled retiree households -- enough people to populate a small city.

The legislation greatly increases the combined disposable household income that seniors age 61 or older and persons retired through disability can claim and still qualify for various levels of property tax relief:

• Those with incomes of $35,000 or less will qualify for a freeze on the assessed value of their principal residence and are exempt from all excess property-tax levies.



• Those with incomes of $30,000 or less will qualify for the freeze on assessed value and are exempt from all regular property taxes on the greater of $50,000 or 35 percent of the valuation of their residences, but not to exceed $70,000.



• Those with incomes of $25,000 or less will qualify for the freeze on assessed value and an exemption from regular property taxes on the greater of $60,000 or 60 percent of the assessed value of their residences.

The new senior property-tax relief rules would also allow people to deduct costs for Medicare premiums as well as costs for care in boarding homes or adult family homes when calculating disposable incomes. These changes build on current allowed deductions for nursing home care, hospital care and prescription drugs.

The income ceiling for the little-used senior property-tax deferral program was also raised from $34,000 to $40,000.