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Bill

Bill

SB 5681

Allowing medicare supplemental insurance premiums to be deducted from the calculation of disposable income for the purpose of qualifying for senior property tax programs.

2023-2024 Regular Session Introduced by Phil Fortunato and 4 co-sponsors

Excludes Medicare supplemental insurance premiums from disposable income calculations to expand senior property tax relief program eligibility in Washington state.

By resolution, reintroduced and retained in present status.
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Bill Summary · SB 5681

Legislative bill overview

SB 5681 would allow Medicare supplemental insurance premiums to be deducted from disposable income calculations when determining eligibility for Washington state's senior property tax programs. Currently, these premiums are not excluded, which can make seniors ineligible for tax relief despite having limited actual spending capacity. The bill aims to better reflect seniors' true financial situation by accounting for healthcare costs.

Why is this important

Many seniors live on fixed incomes and use significant portions for healthcare expenses. By excluding Medicare supplemental premiums from disposable income calculations, more seniors could qualify for property tax relief programs—potentially reducing their tax burden during retirement years when income is most constrained. This directly affects property tax affordability for elderly homeowners in Washington.

Potential points of contention

  • Program cost implications: Expanding eligibility for tax relief programs could reduce state/local tax revenue; fiscal impact analysis would determine if this is fiscally sustainable
  • Definition scope: Unclear whether only Medicare supplemental premiums qualify or if other healthcare costs (prescriptions, copays, long-term care insurance) should also be deductible
  • Fairness questions: Whether seniors should receive property tax relief unavailable to other low-income populations, or if the criteria should be broader

Compiled from official sources — confirm details with the bill’s official record.

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