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Republicans lead charge for
tax relief reinstatement, rebate;
advise caution on risky deferral plan
Questioning why it took
the governor 17 months to act on Initiative 747, House Republicans say
they are ready to reinstate the 1 percent levy limit of the
court-rejected measure, plus provide homeowners with a $400 property tax
rebate.
"When a lower court ruled
against I-747 in 2006, House Republicans asked for a special session to
reinstate it. When that request was denied, we proposed legislation
early in 2007 that would have upheld the will of the voters. But the
governor said ‘no’ both times," said House Republican Deputy Leader
Rep. Doug Ericksen.
"While this special session is a good idea, it’s frustrating it has
taken so long to address the issue."
"We introduced three bills
during the 2007 session and signed onto a bipartisan bill -- all of
which would have reinstated the I-747 limit. Unfortunately, Democrats
blocked our efforts to move those bills forward," added
Rep. Ed Orcutt,
ranking Republican on the House Finance Committee.
"We're glad the governor and her party are finally echoing what we've
been saying for 17 months. The citizens of Washington have waited long
enough for meaningful property tax relief. Without reinstating the I-747
provisions, they would be subject to an increases of their taxes. We're
ready to uphold the will of the people and restore the 1 percent limit.
We'll also be pushing for some actual property tax relief."
House Republican leaders
voiced their concern about reports that some legislators may push to
make the 1 percent cap temporary.
"When voters approved
I-747, they weren't looking for temporary property tax relief. They want
and deserve permanent relief," said Orcutt, R-Kalama. "We should respect
their wishes. Anything less, such as a sunset of this bill, would be
another slap in the face of voters who want permanent tax relief."
Since 1986, when local
governments raised property taxes less than the limit, they were allowed
to bank the difference for future tax increases. House Republican
leaders noted that if taxing districts were to choose now to use that
"banked capacity," it could result in double-digit tax increases. To
ensure permanent property tax relief, Orcutt has introduced legislation
that would require taxing districts to seek voter approval before using
their banked capacity.
"One percent means 1
percent. We need to protect taxpayers and to prevent those districts
from doing an end-run around what we're trying to accomplish in the
special session," said Orcutt.
In addition, House
Republicans will roll out a bill introduced by
Rep. Dan Roach
that would provide a $400 rebate for Washingtonians who paid property
taxes on their primary residence in 2007.
"The state has a large surplus of tax money. Meanwhile, homeowners are
struggling to meet their skyrocketing property tax bills," said Roach,
R-Bonney Lake. "The 1 percent limit is a good start. However, a rebate
would be very helpful for property owners, and an investment in our
economy. The best way for the state to provide immediate tax relief is
to give back to the people who earned this money first."
Ericksen said the rebate
plan is a better way to provide property tax relief than a risky
Democrat proposal to provide a 50 percent property tax deferral to
homeowners, who would eventually be required to pay state government all
the back taxes, plus interest as high as 7 percent.
“There’s a reason no other
state has a tax deferral program like this one – and that’s because it
is a bad idea,” said Ericksen, R-Ferndale. “This pay less now, pay more
later approach will hurt people in the long-run. Aside from putting a
lien on their homes, charging people seven percent on their deferred
taxes is only going to lead to more debt.”
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For more information, contact:
John
Sattgast, Senior Information Officer: (360) 786-7257
John
Handy, Assistant Director: (360) 786-5758
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