PRESS RELEASE
Date: May 4, 2004

Income level changes for Senior Citizen and Disabled Persons property tax exemptions - Good news for many Senior Citizen and Disabled property taxpayers. This year’s State Legislature raised the income thresholds and made other minor changes to the qualification rules for claiming a senior/disabled property tax exemption. The purpose of this exemption is to allow homeowners with fixed incomes to remain in their homes in the face of rising property taxes. Seniors over the age of sixty one and individuals too disabled to work who make less than $35,000 of combined household disposable income, who live in their own home are now eligible for significant property tax relief. The income threshold was previously $30,000. There are three exemption categories. In all cases assessed value is frozen at the time of qualification for the exemption and remains so frozen while qualified. Specific benefits are as follows:

Category A: Incomes up to $25,000 (previously $18,000)—exempt from all voted excess levies (e.g. local school levy), and either $60,000 or 60% reduction of assessed value whichever is greater.

Category B: Incomes of $25,001-$30,000 (previously $18,001-$24,000)—exempt from all voted excess levies, and either $50,000 or 35% reduction of assessed value, not to exceed $70,000 , whichever is greater.

Category C: Incomes of $30,001-$35,000 (previously $24,001-$30,000)—exempt from all excess voted levies.

Un-reimbursed prescription drug expenses and now Medicare insurance premiums can be deducted from income to achieve the thresholds noted above.

The property tax deferral program, a closely related tax relief measure was also modified this year. Taxpayers over the age of 60 with household incomes below $40,000 (previously $34,000) can apply to have the state pay their property tax bill plus assessments. Under this program the state paid amounts become a lien against the property in favor of the state and 8% annual interest is charged until paid.

3469 properties in Kitsap County currently benefit from the above, described exemption. It is anticipated that as many as 500 new taxpayers will be eligible for the exemption and that an equal number will be able to shift to a more generous category with the newly created higher limits. Taxing districts will not lose revenue as a result of more exemptions. Instead, all non-exempted taxpayers will pay slightly higher tax bills.

Property taxes due in 2005 will be affected by this change. Existing program participants will be shifted to the appropriate category based on currently reported income. No action by them will be necessary. Those living in their own home, sixty-one years of age and older or disabled, who make between $30,000 and $35,000 should contact the assessor’s office to initiate an exemption application. Contact the assessor by phone or email.