SENIOR/DISABLED PROPERTY TAX EXEMPTION

If you are a senior citizen over the age of 61 or a disabled person unable to work, you could be eligible for the Senior/Disabled Property Tax Exemption. Your household income and your age or disability determines your eligibility for this program. This information is intended for general information purposes and does not alter or supersede any administrative regulations or rulings issued by the Washington State Department of Revenue.

Participation in this program will:

Eligibility Requirements
Age or Disability

You must be at least 61 years old or must be unable to work because of a physical disability prior to the year of your application. For example, if you turned 61 or were physically disabled in 2006 your application year would be 2007. (Proof of disability is required.)

Ownership Requirements

The exemption is available for your primary residence and up to one acre of land that your residence sits upon. If local zoning and land use regulations require more than one acre of land per residence in the area where you live, you may be eligible for a property tax exemption on up to five acres of land. You must reside at least six months each year on the property and the property must be your primary residence in the year prior to when the taxes are due. Property used as a vacation home is not eligible for the exemption program.

You must own your residence, either in total (fee owner), as a contract purchaser, mortgagee, deed of trust, or as a life estate (including lease for life).

A mobile home may qualify as your residence regardless of whether or not you own the land it sits on.

Your property will still be considered your primary residence if you are temporarily residing in a hospital, nursing home, boarding home, or adult family home. You may also rent your residence during your hospital or nursing home stay if the rental income is used to pay hospital or nursing home costs. Assisted living facilities are not considered nursing homes.

If you transfer your residence into a revocable trust, you must retain the full use of the residence, and you must be able to revoke the trust and retake ownership at any time. For an irrevocable trust to qualify, it must be deemed a life estate.

If your primary residence or the land your primary residence sits on is owned by a government entity, you may still be eligible for an exemption if you meet the other qualifications.

A home owned by a married couple or by co-tenants is considered owned by both spouses and/or co-tenants. Only one owner must meet the age or disability requirement.

Calculating Annual Income

To qualify for an exemption your annual income cannot exceed $35,000. Proof of income is required in the form of a federal income tax return and all year-end statements. All sources are to be included, whether they are taxable for federal income tax purposes or not.

Most common sources of income include, but are not limited to:

		Wages, Salaries, and Tips
		Interest and Dividends
		Social Security Benefits
		Business and Rental Income
		Railroad Retirement Benefits
		Capital Gains
		Pensions and Annuities
		IRA Withdrawals

Loss and depreciation from business and rental income may not be deducted and must be added back into your total income.

Pensions and annuities may include retirement bonds, individual retirement accounts, IRA’s, and distributions from Keogh plans.

An annuity is a payment of a fixed sum of money received at regular intervals. Examples of annuity payments include unemployment compensation, disability payments, and welfare payments (excluding income received for the care of dependent children).

		If you were retired for two or more months during the application year, your annual household income will be calculated by multiplying your average monthly income after your retirement by 12 months.
		If your spouse died before November 1st of the application year, your annual household income will be calculated by multiplying the average monthly income after the occurrence by 12 months.

Deductions Allowed on Annual Income:

The following may be deducted from your total income:

		Any capital gain from the sale of your “primary residence” that is reinvested in the purchase of your “new primary residence”. (Proof of your reinvestment is required.)
		Nursing home costs for yourself, your spouse, or your co-tenant that are not reimbursed by insurance. (Proof of these costs is required.)
		Prescription drugs for yourself, your spouse, or your co-tenant that are not reimbursed by insurance. (Proof of payment is required.)
		Insurance premiums for Medicare under Title XVIII of the Social Security Act.
		In-home health care costs for yourself, your spouse, or your co-tenant that are not reimbursed by insurance. (Proof of these costs is required.)

In home health care is defined as medical treatment or care received in the home such as special needs furniture, oxygen, meals-on-wheels, attendant care, and light housekeeping tasks that are part of the necessary and appropriate treatment.

Payments for in-home health care must be reasonable and comparable to payment of similar services in your area. The persons providing the care or treatment need not be licensed. Proof of any deductible expense must be submitted with your application.

Levels of Exemption

When your annual income for the application year is $35,000 or less, your home and up to five acres of land that your home sits on will be exempt from all excess or special levies. The amount of land exempted depends upon the zoning requirements of that land. Excess or special levies are in addition to regular levies and require voter approval to provide money for specific purposes such as school bonds and maintenance and operation levies. If your income falls in Categories A or B, you are also exempt from part of the regular levies as noted below:

Death of the Applicant

Washington State Law states that an exemption is cancelled upon an applicant’s death. Therefore, if you pass away before your taxes are paid, your exemption will be removed for the current year and all unpaid taxes will be recalculated at the market value, to include interest and penalties on all delinquent years.

Your surviving spouse may continue to receive the exemption if he or she is at least 57 years old and meets all other eligibility requirements.

Sale or Transfer of Ownership

If you sell, transfer, or are otherwise displaced from your residence, you may transfer your exemption to your new “primary residence” provided you own your “new residence”. However, you may not receive an exemption on more than one residence in any year.

When an exemption is transferred to a new residence, the value of the new residence is frozen as of January 1st of the year of the transfer.

If you are moving to Washington, you may transfer an exemption from another state to your new Washington residence, provided you meet all other eligibility requirements and provide proof of your prior exemption.

Renewing Your Application

		Washington State Law states that a claimant must renew their exemption once every four years or if:
		You are notified to do so by the Grays Harbor County Assessor’s Office.
		You sell your property and purchase a “new primary residence”.
		A change in status occurs such as a change in income, or in your living circumstances that would effect your exemption.

The Grays Harbor County Assessor’s Office must notify you if your application is denied. You may appeal your denial to the Grays Harbor County Board of Equalization within 30 days of the date your denial was mailed.