Rep. Dawn Morrell (D-Puyallup) returned to Olympia with an idea she brought from her summer of knocking on people’s doors – improve an important program for local seniors and veterans.
“This summer I spent countless hours visiting people at their doorsteps and a common problem that I heard from our seniors and disabled veterans on fixed incomes is that we have to do something about the state’s property tax exemption program,” said Rep. Morrell. “Many of these folks, who for years used the exemption, are finding themselves ineligible due to changes in their Social Security benefits and are at risk of being taxed out of their homes.”
Currently some senior citizens and persons retired due to disability are entitled to property tax relief under the state property tax exemption program. Individuals can become eligible when they reach the age of 61 or retire from employment because of a disability or as a disabled veteran, and have a disposable income of less than $35,000 a year. The exemption freezes the value of an individual’s home and exempts them from all excess levies and possibly a portion of regular levies.
In 2003, her first term in the Legislature, Rep. Morrell shifted the exemption threshold from $30,000 to $35,000. House Bill 1170 originally would have shifted the threshold upwards again to $40,000, but due to concerns raised by the Association of County Officials, Rep. Morrell agreed to change the bill to a comprehensive study of both the property tax deferment and exemption programs.
County officials cited variations in median incomes in counties throughout the state and feared a one size fits all approach. The bill as amended directs the Department of Revenue to establish a 4-person task force to review and analyze the factors impacting the tax exemption and deferral programs.
“I was hoping we could provide immediate relief but in the end this is a victory,” said Rep. Morrell. “Getting everyone to the table will help make sure the program is operating efficiently and effectively and will move us in the right direction.”
The task force must include representatives of the county assessors, a retirement organization, a veteran’s organization and the Department of Revenue and report their findings back to the legislature by December 1, 2013. Rep. Morrell said that she will be back next January to hopefully implement the recommendations of the task force.
The measure will now face consideration before the Senate.