Publications

Initiative 747 is the latest property tax limitation law enacted by the people of Washington. The measure passed in November 2001, receiving 57.5% of the popular vote, gaining a majority in every county except King and Whitman. It requires the state and local governments to limit increases in their regular property tax collections to 1% a year, unless voters approve a larger increase. Under certain conditions, local officials can also tap other taxing authority to impose larger tax hikes.

In the July 20 edition, Richard Chapin writes that government is inherently inefficient and a new tax structure is needed to pay for the bloated, inefficient services provided by state and local governments across Washington. He says nothing can be done about government inefficiency, so we'll just have to accept a state income tax to pay for the spiraling cost of public services. While his analysis of the inefficient nature of government services is accurate, recommending an income tax to solve our problems is a fundamentally flawed proposal.

Many people believe their property value alone determines how much property tax they must pay, and when the county assessor updates home values to reflect market trends, their taxes automatically go up. This is not the case.

Faced with a recurring state budget crisis and voter opposition to new tax increases, some policymakers and interest groups are pushing for a complete overhaul of our state tax system. High business taxes, a slumping economy and a severe budget shortfall are generating speculation that our current tax system can no longer pay for an expanding public sector while also allowing the economy to prosper.