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November 21, 2007 |
Contact: John Barnes |
Legislature Should Re-Enact 1% Limit, and Protect Taxpayers by Phasing out the State Property Tax
Seattle – Washington Policy Center recommends that lawmakers do three things during next week’s special session:
- Re-enact the voter approved one percent property tax limit just as it was before the Supreme Court overturned I-747;
- Enact a permanent reduction in the state property tax, and;
- Repeal banked taxing authority. Local governments should not be permitted to save up taxing authority over time, then suddenly tap this “banked” capacity to impose greater-than-1% property tax increases on citizens. If local officials feel they need control over more revenue, they can always take their tax-increase request to the voters for approval.
“Opponents of I-747 said it would harm vital public services and that it could cost lives. Our research shows the critics were wrong.” says Paul Guppy, Vice President for Research at Washington Policy Center. “Limiting tax increases and cutting taxes serve the public interest by freeing up money for investment and job creation, helping elderly people on fixed incomes, and increasing take-home pay by allowing working families to keep more of what they earn.”
“Imagine a world in which your property taxes actually went down,” Guppy adds.
Ways lawmakers can reduce the property tax burden include:
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Permanently cut the state property tax – The state tax makes up about 25% of most people’s yearly property tax bill. Lowering the amount of money the state takes from citizens would bring real and long-lasting financial relief to homeowners and business owners across the state.
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Phase out the state property tax over five years – Tax money flowing into the treasury is increasing at a yearly rate well beyond population growth plus inflation. In fact, state spending is up 30% over four years. Phasing out the state property tax would protect taxpayers while maintaining ample revenue to pay for public services.
“Restoring I-747, while essential, will mitigate the impact of future property tax increases – not reduce current taxes,” says Jason Mercier, Director of WPC's Center for Government Reform. “Lawmakers should use the special session to give Washingtonians an early Christmas present by permanently reducing their property tax burden.”