2023 Revised Code of Washington › Title 84 - Property Taxes › Chapter 84.36 - Exemptions. › 84.36.383 - Residences—Definitions.

RCW 84.36.383
Residences—Definitions.
As used in RCW 84.36.381 through 84.36.389, unless the context clearly requires otherwise:
(1) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for:
(a) Drugs supplied by prescription of a medical practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions;
(b) The treatment or care of either person received in the home or in a nursing home, assisted living facility, or adult family home;
(c) Health care insurance premiums for medicare under Title XVIII of the social security act;
(d) Costs related to medicare supplemental policies as defined in Title 42 U.S.C. Sec. 1395ss;
(e) Durable medical equipment, mobility enhancing equipment, medically prescribed oxygen, and prosthetic devices as defined in RCW 82.08.0283;
(f) Long-term care insurance as defined in RCW 48.84.020;
(g) Cost-sharing amounts as defined in RCW 48.43.005;
(h) Nebulizers as defined in RCW 82.08.803;
(i) Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW;
(j) Ostomic items as defined in RCW 82.08.804;
(k) Insulin for human use;
(l) Kidney dialysis devices; and
(m) Disposable devices used to deliver drugs for human use as defined in RCW 82.08.935.
(2) "Cotenant" means a person who resides with the person claiming the exemption and who has an ownership interest in the residence.
(3) "County median household income" means the median household income estimates for the state of Washington by county of the legal address of the principal place of residence, as published by the office of financial management.
(4) "Department" means the state department of revenue.
(5) "Disability" has the same meaning as provided in 42 U.S.C. Sec. 423(d)(1)(A) as amended prior to January 1, 2005, or such subsequent date as the department may provide by rule consistent with the purpose of this section.
(6) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:
(a) Capital gains, other than gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;
(b) Amounts deducted for loss;
(c) Amounts deducted for depreciation;
(d) Pension and annuity receipts;
(e) Military pay and benefits other than attendant-care and medical-aid payments;
(f) Veterans benefits, other than:
(i) Attendant-care payments;
(ii) Medical-aid payments;
(iii) Disability compensation, as defined in Title 38, part 3, section 3.4 of the Code of Federal Regulations, as of January 1, 2008; and
(iv) Dependency and indemnity compensation, as defined in Title 38, part 3, section 3.5 of the Code of Federal Regulations, as of January 1, 2008;
(g) Federal social security act and railroad retirement benefits;
(h) Dividend receipts; and
(i) Interest received on state and municipal bonds.
(7) "Income threshold 1" means:
(a) For taxes levied for collection in calendar years prior to 2020, a combined disposable income equal to $30,000;
(b) For taxes levied for collection in calendar years 2020 through 2023, a combined disposable income equal to the greater of "income threshold 1" for the previous year or 45 percent of the county median household income; and
(c) For taxes levied for collection in calendar year 2024 and thereafter, a combined disposable income equal to the greater of "income threshold 1" for the previous year or 50 percent of the county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385(8).
(8) "Income threshold 2" means:
(a) For taxes levied for collection in calendar years prior to 2020, a combined disposable income equal to $35,000;
(b) For taxes levied for collection in calendar years 2020 through 2023, a combined disposable income equal to the greater of "income threshold 2" for the previous year or 55 percent of the county median household income; and
(c) For taxes levied for collection in calendar year 2024 and thereafter, a combined disposable income equal to the greater of "income threshold 2" for the previous year or 60 percent of the county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385(8).
(9) "Income threshold 3" means:
(a) For taxes levied for collection in calendar years prior to 2020, a combined disposable income equal to $40,000;
(b) For taxes levied for collection in calendar years 2020 through 2023, a combined disposable income equal to the greater of "income threshold 3" for the previous year or 65 percent of the county median household income; and
(c) For taxes levied for collection in calendar year 2024 and thereafter, a combined disposable income equal to the greater of "income threshold 3" for the previous year or 70 percent of the county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385(8).
(10) "Principal place of residence" means a residence occupied for more than six months each calendar year by a person claiming an exemption under RCW 84.36.381.
(11) The term "real property" also includes a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe, connections with sewer, water, or other utilities. A mobile home located on land leased by the owner of the mobile home is subject, for tax billing, payment, and collection purposes, only to the personal property provisions of chapter 84.56 RCW and RCW 84.60.040.
(12) The term "residence" means a single-family dwelling unit whether such unit be separate or part of a multiunit dwelling, including the land on which such dwelling stands not to exceed one acre, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations. The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides. The term also includes a single-family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080 and 84.04.090, such a residence is deemed real property.
[ 2023 c 147 § 2; 2021 c 220 § 1. Prior: 2020 c 209 § 3; 2019 c 453 § 2; 2012 c 10 § 74; 2010 c 106 § 307; prior: 2008 c 182 § 1; 2008 c 6 § 709; 2006 c 62 § 1; 2004 c 270 § 2; 1999 c 358 § 18; 1995 1st sp.s. c 8 § 2; 1994 sp.s. c 8 § 2; 1991 c 213 § 4; 1991 c 219 § 1; 1989 c 379 § 6; 1987 c 155 § 2; 1985 c 395 § 3; 1983 1st ex.s. c 11 § 4; 1980 c 185 § 5; 1979 ex.s. c 214 § 2; 1975 1st ex.s. c 291 § 15; 1974 ex.s. c 182 § 2.]
NOTES:
Tax preference performance statement exemption—Automatic expiration date exemption—2023 c 147: See note following RCW 84.36.381.
Automatic expiration date and tax preference performance statement exemption—2021 c 220: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act. The legislature intends for this tax preference and its expansion to be permanent." [ 2021 c 220 § 2.]
Automatic expiration date and tax preference performance statement exemption—2020 c 209: See note following RCW 84.36.387.
Application—Automatic expiration date and tax preference performance statement exemption—2019 c 453: See notes following RCW 84.36.381.
Application—2012 c 10: See note following RCW 18.20.010.
Effective date—2010 c 106: See note following RCW 35.102.145.
Application—2008 c 182: "This act applies to taxes levied for collection in 2009 and thereafter." [ 2008 c 182 § 2.]
Part headings not law—Severability—2008 c 6: See RCW 26.60.900 and 26.60.901.
Application—2006 c 62: "This act applies to taxes levied for collection in 2007 and thereafter." [ 2006 c 62 § 4.]
Effective date—1999 c 358 §§ 1 and 3-21: See note following RCW 82.04.3651.
Effective date of 1994 sp.s. c 8—Applicability—1995 1st sp.s. c 8: See note following RCW 84.36.381.
Application—Severability—Effective date—1995 1st sp.s. c 8: See notes following RCW 84.36.381.
Applicability—1991 c 219: "This act is effective for taxes levied for collection in 1992 and thereafter." [ 1991 c 219 § 2.]
Applicability—1991 c 213: See note following RCW 84.38.020.
Severability—Effective date—1989 c 379: See notes following RCW 84.36.040.
Intent—Applicability—Effective dates—1983 1st ex.s. c 11:See notes following RCW 84.36.381.
Applicability—1980 c 185: See note following RCW 84.36.379.
Applicability—1979 ex.s. c 214: See note following RCW 84.36.381.
Effective dates—Severability—1975 1st ex.s. c 291: See notes following RCW 82.04.050.