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13th District lawmakers vote to reinstate 1 percent tax limit, reject
misleading tax deferral bill
State Reps.
Bill Hinkle, R-Cle Elum, and
Judy Warnick,
R-Moses Lake as well as
Sen. Janéa
Holmquist, R-Moses Lake,
voted in favor of reinstating the 1 percent tax levy increase limit
outlined in Initiative 747 today. In the House, the vote for reinstating
I-747 was 86-8. In the Senate, the vote for reinstating was
39-9.
“The people voted
overwhelmingly in 2001 for the 1 percent limit,” Hinkle said. “The
Legislature did the right thing today by respecting the voters’
decision. It is unfortunate that it took such tremendous pressure to get
the governor to uphold their wishes.”
All three lawmakers
were disappointed, however, that the state did not adequately address
the banked capacity loophole, and believe large increases are in store
for taxpayers.
“Homeowners could see
their property taxes increase 30 percent because of the banked capacity
the taxing districts have accrued over the last several years,”
explained Warnick. “Property owners voted for a 1 percent cap and that
is what we should have delivered today.”
“While we
appropriately reinstated I-747’s property tax protections, the Democrat
majority demonstrated that they were not serious about completely
tackling the banked tax capacity issue,” said Holmquist. “To completely
fulfill the will of the people, the Democrats and the governor should
have supported
Senate Bill 6175, which truly addressed the 1 percent cap and the
banked capacity issue.”
Senate Republicans
attempted to bring Senate Bill 6175, which Holmquist co-sponsored, to
the floor, but were voted down on a near party line vote.
Also today in
Olympia, the Legislature passed
Senate Bill 6178. The bill allows property owners with an annual
income of $57,000 or less to defer 50 percent of their property tax bill
each year. The total maximum deferral is up to 40 percent of the home's
equity. The deferred taxes will accrue interest, currently at 7 percent,
each year
and a lien will be put against the household. The Democrat-sponsored bill
passed but all three lawmakers voted against it.
Holmquist remarked, “Instead of providing
true property tax relief, this measure takes advantage of the most
vulnerable homeowners. Instead of building equity in their homes,
citizens will build up massive property tax debt, plus interest. The
state should be protecting consumers from these types of predatory
lending practices, not trapping them in debt.”
“This is one the
worst pieces of public policy I have seen in the Legislature,” agreed
Hinkle. “The Legislature passed a tax increase today and basically
entered the sub-prime lending business. And in doing so, set the stage
for property owners to owe the state tens of thousands of dollars when
they sell their homes.”
“In my small business
I have seen many homeowners who have taken short-term relief; it
ruined them in the long run,” Warnick said. “Part of our job as
legislators is to protect the vulnerable. This deferral is a gimmick
that should not be supported by the Legislature of all places.”
A typical example in
Grant County of how the tax deferral bill will work is for a homeowner
with a $156,000 home who defers 50 percent of his or her property tax
for 10 years, with 7 percent interest, would owe the state about $19,000
when the home is sold.
House Bill 2416 and
Senate Bill 6178 were signed by the governor tonight.
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For more information, contact:
Sarah Lamb, Public Information
Officer - (360) 786-7720
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