State Legislators Need to Stand Up for Senior Homeowners

Property Tax Exemption Bills Drifting Away from Goal

(OLYMPIA, WA) - This week the legislature is reviewing and making decisions on several bills impacting our states seniors and more specifically the Senior Property Tax Exemption (SB 6314, HB 2597, SB 6251, HB 2608, SJR 8212).

According to the “Who Pays?” report from the Institute on Taxation and Economic Policy (ITEP), Washington State has the most upside down, or “regressive” tax system in the nation. The lack of an income tax places a significant burden on the sales tax, property tax and other excise taxes which disproportionately impacts lower and middle income residents.

The fact is eligible low-income and middle-income seniors are not benefiting from the current senior property tax exemption program as intended in the State’s Constitution. The goal is to give seniors the ability to “age in place” as the best and most affordable option for seniors.

“While several bills have been filed, we feel that legislators may have taken their eyes off the prize,” said AARP Advocacy Director Cathy MacCaul  “Any effort on improving senior property tax exemption and deferral programs should start with the goal of keeping seniors in their own homes for as long as possible.”

AARP is urging legislators to include several important provisions to protect senior homeowners, including:

1. Increase the income eligibility.  Currently, in order to qualify, an applicant needs to be 61 years or older and living on a household income of less than $40,000 a year. Most seniors who are married and have a small pension and social security easily exceed the qualifying income amount.
2. Streamline the application process and increase awareness about the program. Currently, the program requires numerous documents to be printed and submitted making it difficult for seniors without internet access to apply.
3. Uniformity of the program. The program needs to be fair and indexed to the economic level of individual counties across the state.
4. Prevent exploitation of the system. Currently, there are individuals who are "gaming" the system by purchasing homes, waiting for the 60 day residency period and putting a qualifying senior on the title of the home but never occupying the home.

To add further economic burden to seniors, property taxes in King County are expected to rise by 20% to 25% in 2018. The increase is created in part by the special property tax deal passed by the Washington State Legislature to boost funding for public education.

“With only 30% of eligible seniors enrolled in the senior property tax exemption program, more seniors are going to feel the pinch of increased taxes; many are going to have to make hard decisions; and some – unfortunately -- will be forced out of their homes,” said MacCaul.

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About AARP

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.