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Haler votes to reinstate 1 percent limit,
opposes tax deferral bill
State Rep. Larry
Haler today voted to uphold the will of the people and reinstate the 1
percent tax limit outlined in Initiative 747.
“It was clear six
years ago what the people wanted when they voted 58 percent in favor of
I-747,” explains Haler. “Today, lawmakers respected the voters’ decision
and passed House Bill 2416, which reinstates the 1 percent tax limit.
However, the bill did not go far enough to protect taxpayers from
potentially damaging tax increase from banked capacity.”
Banked capacity is
the difference between an actual property tax levy and the maximum
authorized levy.
“Some taxing
districts have a stockpile of unused taxing power because of banked
capacity,” adds Haler. “In some cases that capacity is 30 percent, which
would cripple some property owners and force them out of their homes.”
Also today, the
Legislature passed Senate Bill 6178, which allows homeowners under the median
household income ($57,000) to defer 50 percent of their property tax
payments until they sell their home. The deferral comes with a 7
percent interest rate and the state puts a lien on the home.
“I voted against this
bill because it is going to hurt homeowners,” says Haler. “Government is
actually increasing taxes on homeowners because the deferral accrues
interest. This is a predatory move like sub-prime lending that serves no
benefit to homeowners.”
A typical example of
how the tax deferral bill will work is for a homeowner with a $295,000
home who defers 50 percent of his or her property tax for 10 years, with
7 percent interest, will owe the state about $31,000 when the home
is sold.
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For more information, contact:
Mike Deising, Public
Information Officer - (360) 786-7698
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