Jan. 12, 2009

Armstrong seeks property tax relief in first bills of session
Measures would eliminate state portion of property taxes, cap assessments

Making good on his promise to seek meaningful tax relief for 12th District home- and property owners, Rep. Mike Armstrong has introduced legislation that would eliminate the state portion of property taxes. House Bill 1027 was among the first bills to be introduced today during the opening day of the 2009 legislative session.

"The state budget deficit has attracted a lot of attention in Olympia. But I think the biggest issue affecting the 12th District is property tax relief. Homeowners in North Central Washington are getting hit hard with skyrocketing property taxes. It's especially difficult for long-time residents of Leavenworth and Chelan where properties are in demand, which drives up prices," said Armstrong, R-Wenatchee. "People are struggling with assessment increases as high as one hundred percent. In this economy, many don't know if they can afford to stay in their homes. The goal of my legislation is to prevent government from taxing people out of their homes and allow them to keep what they own."

Under HB 1027, the state property tax levy would be incrementally reduced over six years until it is entirely eliminated.

"Twenty-four percent of the property taxes you pay go into that deep, dark hole known as the state general fund where it gets lost in the mix. The other seventy-six percent stays in the local community. My legislation would reduce the state's portion of the property tax by four percent every year until it is entirely eliminated in six years," said Armstrong. "The reduction is done incrementally so it is not such a big impact on the state budget, and it gives us latitude to correct our budget deficit problems by the time this legislation is fully implemented."

Armstrong noted that third- and fourth-generation families in North Central Washington are now having to consider selling properties that have been in their families for years because of unaffordable property taxes.

"Most people don't mind paying their property taxes if they are fair and affordable. However, when you are looking at assessments that are double or triple on a cabin at Lake Wenatchee or an unimproved property in Entiat, then I can understand why people are up in arms about their property tax bills," said Armstrong. "I want to restore fairness in the system by providing a twenty-four percent reduction in property taxes, and keeping remaining property tax revenues in our local communities -- not the state's general fund."

Armstrong has also introduced House Joint Resolution 4200, which if approved by the Legislature, would ask voters in November whether to cap annual property tax assessments at 1 percent per year.

The 12th District lawmaker acknowledged it may be a struggle in a budget deficit year to advance property tax relief. However, he said if the state is to get a handle on its budget problems, the Legislature needs to provide relief for people struggling with their own budgets which have been exacerbated by excessive property taxes.

"We don't have a revenue problem in our state. We have a spending problem. The state has to live within its means. Revenues are expected to increase this year by another five percent. And yet, the Legislature continues to over spend," noted Armstrong. "That's why it is good timing for these bills because they emphasize the fact that the state has to live within its means."

Both bills have been referred to the House Finance Committee for further consideration.

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