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Finance and Taxation committee approves amendment to expand primary-residence credit eligibility to trusts, passes bill and refers it to appropriations
Summary
The Finance and Taxation Committee approved an amendment to Senate Bill 2201 to allow trusts and life estates to qualify for the primary-residence tax credit, passed the bill as amended, and voted to re-refer the measure to appropriations because of a $2,000,000 fiscal note.
The Finance and Taxation Committee approved an amendment to Senate Bill 2201 that removes a provision excluding property held by certain private corporations or pass-through entities and preserves eligibility for trusts and life estates to claim the primary-residence credit. The committee then passed the bill as amended and voted to re-refer it to the Appropriations Committee because of a fiscal note the committee said was $2,000,000.
Senator Patton, who presented the amendment, said it was prepared with legislative counsel and reflected language also used in House Bill 1176. "The amendment you have in front of you is a result of that. It takes out in the red overstrike, private that is held in a corporation or pass through entity that owns property. It leaves in the trust language and also if you're a life estate," Senator Patton said.
Senator Wallin moved to accept the amendment; Senator Patton seconded. The clerk recorded an affirmative roll call from Chairman Weber, Vice Chair Rummel, Senator Marsalway, Senator Patton, Senator Powers and Senator Wallin. The committee then voted, on a motion to pass the bill as amended, with the same members voting in favor; the chair declared the bill passed in committee.
Committee members noted an explicit limitation in the amendment: a trust may claim only one primary-residence credit (noted in committee discussion as appearing on "page 3, lines 24-25"). Senator Patton also confirmed the amendment was retroactive, applying to "anybody that has property held in a trust or the life estate," as presented to the committee.
Because the bill carries a fiscal note the committee said was $2,000,000 and exceeded the committee's allowable threshold, the committee voted to re-refer Senate Bill 2201 to Appropriations. Senator Patton moved the referral; the motion was seconded and carried on an affirmative roll call.
Chairman Weber said he would carry the bill to the Senate floor as the sponsor. The committee took no other substantive action on the measure at this meeting.
