Feb. 13, 2008

Committee approves DeBolt tax breaks for flood victims
Two tax relief bills are now in the House Rules Committee

The state House Finance Committee Tuesday approved two bills that would provide tax relief for victims of the December flood.  House Bill 3137 and House Bill 3138, both prime sponsored by Rep. Richard DeBolt, R-Chehalis, were approved just hours before the Legislature’s self-imposed deadline for moving bills out of committee.

House Bill 3137 would provide a three-year exemption from state property taxes for flood victims whose property value was reduced by at least 10 percent as a result of flood damage.  House Bill 3138 would provide victims a sales and use tax exemption on repairs and replacement costs to restore flood damaged homes. 

"The victims of the flood and their neighbors have shown remarkable resilience and self-reliance in attempting to recover from this disaster," said DeBolt. "They deserve the support of the Legislature to alleviate the tremendous burden they’ve faced.  To be clear, this is not charity and it’s not welfare.  This is a fair response to reduce the tax burden on those who have suffered a substantial loss.  Under no circumstances should the state be cashing in on the misfortune of flood victims."

The tax breaks are available to residents in counties where a federal disaster was declared.  Eligibility is based on claims for damages approved by the Federal Emergency Management Agency.

DeBolt said he is trying to make the sales and use tax exemption retroactive so homeowners can take advantage, even if they’ve paid taxes on costs already incurred to rebuild and repair their homes.  He said the existing law does make it difficult to refund sales and use taxes that have already been lawfully paid.  Nevertheless, DeBolt is encouraging homeowners to save receipts in case he’s able to successfully usher the bill into law with language to make the tax break retroactive.

The two tax relief bills for flood victims are now in the House Rules Committee, waiting to be scheduled for a vote in the House of Representatives.

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For more information, contact:  John Rothlin, Staff Director - (360) 786-7254