Exemptions & deferrals

The State of Washington has four programs to assist individual homeowners with payment of property taxes and/or special assessments:

Learn more about the State of Washington's property tax relief programs for individuals.

Property search tool

You can search for exempt nonprofit properties using this tool:

Nonprofit & tribal property tax exemption search

 

Frequently asked questions

I have a proof of disability signed by a Chiropractor. After his name is “D.C.P.S.” Is this sufficient documentation to prove eligibility for the exemption program?

WAC 458-16A-135 (5)(e)(iv)(A) says that if a claim is based on a disability the claimant must provide either acknowledgment from SSA or VA or from "a licensed physician (medical or osteopath doctor), a licensed or certified psychologist for disabling mental impairments, or a licensed podiatrist for disabling impairments of the foot."

A D.C.P.S. does not qualify as a "medical doctor". The Revised Code of Washington is very clear in using the term "medical doctor.” Based on the definitions in the professions section of the RCW, "chiropractor" is not the same thing. See RCW 18.71.011 and 18.25.005 .

Are premiums paid for Medicare part D (the new drug benefit) subtracted from combined disposable income in the senior PTR program?

Yes, the new premiums are an allowable deduction. The statute, RCW 84.36.383(4)(c), says that “health care insurance premiums for Medicare under Title 18 of the SSA” should be deducted from combined disposable income. Health care insurance premiums under Title 18 of the SSA include:

Part A—Hospital Insurance Benefits for the Aged and Disabled,

Part B—Supplementary Medical Insurance Benefits for the Aged and Disabled,

Part C—Medicare + Choice Program, and

Part D—Voluntary Prescription Drug Benefit Program

I recently changed my home loan and now pay my property taxes rather than my mortgage company paying them for me. How do I change the location in which my property tax statement is sent?

The Department of Revenue does not maintain individual property tax records for taxpayers. You need to contact your local county treasurer's office to inform them of changes that should be made to your tax records.

An applicant has won $272,000 in a lawsuit. Does it count as disposable income for the senior citizen exemption program?

According to IRS rules, in order to determine whether or not a court award must be included in adjusted gross income, you must consider the item that the settlement replaces.

If the person files a Federal tax return, certain types of settlements would be included as “Other Income” in the taxpayer’s adjusted gross income. Since our starting point according to RCW 84.36.383(5) is adjusted gross income, those types of settlements would also be included in the disposable income calculation.

If the settlement is “compensatory damages for personal physical injury or sickness”, then the settlement would not be included in adjusted gross income and should not be included in disposable income. The court documents should be reviewed to confirm the type of settlement (i.e. what the settlement replaces).

IRS Publication 525 has more information on this. You can find the publication at http://www.irs.gov/pub/irs-pdf/p525.pdf . The section is called “Court Awards and Damages.”

 

Taxation of Permanent Improvements on Tribal Trust Land 

To which properties does the Property Tax Advisory (PTA) apply?

The PTA applies to permanent improvements located on land held by the Federal Government in trust for a tribe or tribal member. This is true regardless of the ownership of the improvement. It does not apply to land owned in fee or to improvements on that fee land.

What is the difference between trust land and fee land?

Trust land is owned by the United States. It is held in trust for the benefit of the tribe or tribal member.

When the land is owned directly by the tribe or tribal member, it is referred to as fee land. In this case, the Federal Government has no ownership interest and is generally not involved with the property.

What is the definition of “permanent improvements?”

With respect to permanent improvements located on trust land, federal law applies. Whether property is classified as real property or personal property under Washington law is not determinative for purposes of this exemption. To be considered a “permanent improvement,” the property must be a fixture attached to the land. Examples would include buildings, orchard trees, etc.

Are mobile homes that are permanently attached to utilities considered permanent improvements?

Yes. Mobile homes that are permanently attached to utilities have lost their identity as a mobile unit. Therefore, they would be considered permanent improvements.

Does it matter if the trust land is within the boundaries of a reservation?

No. All permanent improvements attached to trust land are exempt from property tax, whether located within or outside the reservation boundaries.

What is the effective date of the decision (or PTA)?

In making its decision, the Court applied existing federal law to the facts of the case. Therefore, there is no specific effective date. The ruling applies to prior tax years.

Does a property owner need to apply for the exemption?

No. These improvements are exempt because they are located on tribal trust land.

Can owners of the permanent improvements claim a refund of taxes paid prior to the Court’s decision?

Yes. Property owners may claim that permanent improvements should not have been taxed in prior years and claim a refund. Under RCW 84.69.030, property owners have three years from the date the property tax was due to file a claim for refund. In order to claim a refund of taxes that were due April 30, 2011, a claim must be filed with the county treasurer by April 30, 2014.

Does the PTA apply to improvements attached to land for which a tribe has applied to BIA for trust status?

No. The PTA would not apply until the tribe receives formal notification that the land has been accepted into trust status by the BIA.