Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-16A - Property tax-Exemptions-Homes for the aging, senior citizens and disabled persons › Section 458-16A-100 - Senior citizen, persons with disabilities, and veterans with disabilities exemption-Definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule contains definitions of the terms used for
			 the senior citizen, persons with disabilities, and veterans with disabilities
			 property tax exemption described in
			 RCW
			 84.36.381 through
			 84.36.389.
(2)
Annuity.
"Annuity" means a
			 series of long-term periodic payments, under a contract or agreement. It does
			 not include payments for the care of dependent children. For purposes of this
			 rule, "long-term" means a period of more than one full year from the annuity
			 starting date.
Annuity distributions must be included in "disposable income,"
				as that term is defined in subsection (12) of this rule, regardless of whether
				the distributions are taxable under federal law. A one-time, lump sum, total
				distribution is not an "annuity" for purposes of this rule, and only the
				taxable portion that would be included in federal adjusted gross income should
				be included in disposable income.
(3)
Assessment year.
"Assessment
			 year" means the year the assessor lists and values the principal residence for
			 property taxes. The assessment year is the calendar year prior to the year the
			 taxes are due and payable. The assessment year is the year before the claimant
			 receives the reduction in their property taxes because of the senior citizen,
			 persons with disabilities, and veterans with disabilities exemption.
(4)
Capital gain.
"Capital gain"
			 means the amount the seller receives for property, other than inventory, over
			 that seller's adjusted basis in the property. The seller's initial basis in the
			 property is the property's cost plus taxes, freight charges, and installation
			 fees. In determining the capital gain, the seller's costs of transferring the
			 property to a new owner are also added onto the adjusted basis of the property.
			 If the property is acquired in some other manner than by purchase, the seller's
			 initial basis in the property is determined by the way the seller received the
			 property (e.g., property exchange, payment for services, gift, or inheritance).
			 The seller increases and decreases the initial basis of the property for events
			 occurring between the time the property is acquired and when it is sold (e.g.,
			 increased by the cost of improvements made later to the property).
(5)
Claimant.
"Claimant" means a
			 person claiming the senior citizen, persons with disabilities, and veterans
			 with disabilities exemption by filing an application with the assessor in the
			 county where the property is located.
(6)
Combined disposable income.
"Combined disposable income" means the annual disposable income of the
			 claimant, the claimant's spouse or domestic partner, and any cotenant occupying
			 the residence for the assessment year, reduced by amounts paid by the claimant
			 or the claimant's spouse or domestic partner for their:
(a) Legally prescribed drugs;
(b) Home health care as defined in subsection
			 (18) of this rule;
(c) Nursing
			 home, boarding home, assisted living facility, or adult family home
			 expenses;
(d) Health care insurance
			 premiums for medicare under Title XVIII of the Social Security Act;
(e) Costs related to medicare supplemental
			 policies as defined in Title 42 U.S.C. Sec. 1395ss;
(f) Durable medical equipment, mobility
			 enhancing equipment, medically prescribed oxygen, and prosthetic devices as
			 defined in
			 RCW
			 82.08.0283 (see also WAC
			 458-20-18801);
(g) Long-term care insurance as defined in
			 RCW
			 48.84.020;
(h) Cost-sharing amounts as defined in
			 RCW
			 48.43.005;
(i) Nebulizers as defined in
			 RCW
			 82.08.803;
(j) 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;
(k) Ostomic items as defined in
			 RCW
			 82.08.804;
(I) Insulin for human use;
(m) Kidney dialysis devices; and
(n) Disposable devices used to deliver drugs
			 for human use, as defined in
			 RCW
			 82.08.935.
Disposable income is not reduced by any of the amounts in this
				subsection (6) if payments are reimbursed by insurance or a government program
				(e.g., medicare or medicaid). When the application is made, the combined
				disposable income is calculated for the assessment year.