SPECIAL NOTICE from the Department of Revenue
Implementation of ESSB 5160 concerning property tax relief programs.
Income based property tax exemptions and deferrals may be available to seniors, those retired due to disability and veterans compensated at the 80% service connected rate. Contact your County Assessor for more information. You can find a link to your county website at http://mrsc.org/Home/Research-Tools/Washington-County-Profiles.aspx.
Widows of 80% disabled veterans may also qualify for grant assistance. Contact the Department of Revenue Grant Administrator at (360) 534-1400 for more information or visit the Department of Revenue Property Tax Division website at http://dor.wa.gov/Content/FindTaxesAndRates/PropertyTax/IncentivePrograms.aspx.
Frequently Asked Questions:
- Is my VA service connected disability compensation or DIC payment counted as combined disposable income for purposes of property tax relief?
No. Veterans’ disability compensation and dependency and indemnity compensation are not included when calculating disposable income.
- Is my military retirement pay or disability compensation counted as combined disposable income for the purposes of property tax relief?
Yes. Military retirement pay is included in disposable income, but veterans’ disability benefits and dependency and indemnity compensation paid by the Department of Veterans Affairs are excluded. (Disposable income in 2016 is used to determine eligibility for tax relief in 2017.)
- If my disability rating is less than 80 percent, will my disability compensation still be excluded from my disposable income?
Yes. There is no requirement for a specific disability rating. This type of income is excluded regardless of the rating.
- What are the eligibility requirements for the Property Tax Exemption Program?
To qualify for the Exemption Program, you must be at least 61 years of age OR disabled OR a disabled veteran with a 80 percent service-connected disability. You must also own and occupy your residence and your combined disposable income must be $40,000 or less.
- Are there other programs I may be eligible for?
Yes, the following programs are available:
- Exemption Program for Senior Citizens, Disabled Persons, and Veterans with 100% Service-Connected Disability
- Deferral Program for Senior Citizens and Disabled Persons
- Deferral Program for Homeowners with Limited Income
- Assistance Program for Widows and Widowers of Veterans
- Where can I find the necessary forms and application due dates?
Forms and publications are available at your county assessor’s office or on the Department of Revenue website at: http://dor.wa.gov/content/findtaxesandrates/propertytax/incentiveprograms.aspx
If you need an application form or have questions about the application process, please contact your local county assessor - http://mrsc.org/Home/Research-Tools/Washington-County-Profiles.aspx
Visit the Department of Revenue Website for more detailed publications and applications for property tax relief programs:
A 80% disabled veteran is age 55, but unable to work because of his disabilities. His family’s income sources include VA Disability Compensation in the amount of $40,000 per year, Social Security in the amount of $18,000 per year, and his wife’s income of $21,000 per year.
Since his disability compensation is not counted toward the family’s ‘combined disposable income’ for purposes of eligibility for the property tax exemption, this veteran is under the $40,000 family income threshold and eligible for property tax relief.
A 30% disabled veteran is age 64 and has retired from employment. Her income includes $5,000 in VA Disability Compensation, $22,000 from Social Security and $7,000 from a small retirement account. Even though she is not 80% disabled, her VA Disability is still not counted toward disposable income, and she is still eligible for property tax relief having met the income and age requirements.
A widower is age 55, but unable to work because of his disabilities. He has not remarried and his spouse died because of a service-connected disability. His income includes $15,000 in VA Dependency and Indemnity Compensation, $22,000 from Social Security, and a small retirement pension of $12,000. The dependency and indemnity compensation is not included in disposable income so he is still eligible for Grant Assistance having met the income and disability requirements.