Exemptions for Seniors
For households with low disposable income (see definition below),
Washington State has programs that can defer or eliminate property taxes. Qualification is based on age or disability. The definition of disposable income is done differently than for federal tax returns, so if you are uncertain about your situation, a quick call to the county will address your personal situation.
These programs are not automatically applied to your tax bill. You must call the
county to apply.
Tax Deferral: If your disposable income is under $40,000 and you
are 61 or older or you are disabled, you can defer payment of taxes. The tax will become a lien on the property, effectively creating a no-fees equity loan for the property owner, with a 5% per year interest rate, that is due upon sale of the property.
More Info (pdf)
Tax Exemption: If your disposable income is between $30,000 to
$35,000 or you are 61 or older or disabled, your property is exempt from all excess or special levies (which comprise about a third of an Anacortes tax bill).
More Info (pdf)
If your disposable income is between $25,000 and $30,000 and you are 61 or older
or disabled, your property is exempt from all excess or special levies (as above),
and eligible for a reduction on the assessed value of the property of between $50,000 (min) to $70,000 (max) – the exact reduction is 35% of the assessed value, within the range.
If your disposable income is under $25,000, and you are over 61 or disabled, your
property is exempt from excess/special levies (as above), and the taxable value is reduced at $60,000 or 60% of the assessed value, whichever is greater.
Disposable income, for this purpose, is the result of subtracting deductions from income. Income includes wages, salary, tips, Social Security benefits, pension and annuity receipts, retirement bonds, IRAs, Keogh, interest, dividends, business income, rental income and capital gains. Deductions from income includes Medicare premiums and out of pocket spending for prescriptions, nursing home spending, in home care, Meals on Wheels, and similar expenses.
This information on disposable income is intended to help you understand whether you might qualify. Actual qualification is based on county review of a completed deferral or exemption application.
Also, if you find that you qualify for 2008, you can apply for a possible refund of your 2007 and 2006 property taxes as well.
Download the application for these tax deferral and exemption programs (pdf), or for more information, contact Katy Prevedell at the Skagit County Assessor's Office at (360) 336-9370.