The Seattle Times editorial board recently performed a rare bit of service journalism:
Fortunately, limited-income seniors, disabled homeowners and veterans are getting a break, with a more generous property-tax exemption taking effect this year. This change is past due and needs to be communicated broadly, so everyone eligible is aware of the opportunity.
This is happening because of a legislative change last year. Instead of a fixed $40,000 income limit for participants, the program is now indexed to counties’ median income every five years. If median incomes rise, more people will be eligible for tax exemptions.
In King County, this raised the threshold to $58,423 this year. Income limits are rising in 13 of the state’s 39 counties. In Snohomish County, the level is now $55,473, in Pierce it’s $45,708 and Kitsap’s is $48,574. Seniors are defined as those 61 and older.
The changes increased the number of eligible property owners in King County from an estimated 37,000 to around 80,000. Yet only 16,000 currently take advantage of the program.
In other words, only 20% of eligible seniors, disabled homeowners and veterans are getting tax breaks available to them
Taxing property is the closest thing we have to a wealth tax in the U.S. unless or until Sen. Warren gets her way. More property taxes and fewer sales taxes would make Washington State’s tax mix more progressive. As a bonus, it turns out that land taxes are another way to encourage efficient use of a limited resource and help create walkable communities.
And yet, the proverbial fixed-income senior is often used as an argument against raising property taxes. Few people I speak with about this are aware that the exemption exists, let alone that it’s increased. So let’s get the word out, especially now that people may be more income constrained due to the coronavirus-induced recession.