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Special session highlights
different approaches
to your property taxes
By Rep. Jim
McCune
Two bills dealing with
property taxes passed in the recent special session. I’d like to explain
what they entail and highlight two different approaches in Olympia to
your property taxes.
First, lawmakers reinstated I-747 which had been struck down by our
courts. I voted for this bill.
Taxing districts are now prohibited from increasing tax levies by more
than 1 percent a year without voter approval.
But there’s a catch – and taxpayers may not be as protected as they
think.
Banked capacity is taxing authority saved up by taxing districts under
previous limits. Banked capacity was initially eliminated by another
voter-approved measure – I-722.
Unfortunately, I-722 was also struck down by our courts – just weeks
before citizens voted for I-747. This means it was too late for banked
capacity to be addressed in I-747.
Many taxing districts today still have banked capacity and can increase
their tax levies by more than 1 percent each year.
I supported legislation that would have required voter approval to use
banked capacity. The majority party rejected the idea.
This highlights a significant difference in approaches to your property
taxes.
Second, lawmakers created a property tax deferral program. I voted
against this bill.
This program allows families making $57,000 or less to defer 50 percent
of their property taxes each year if they have been in their houses at
least five years. A lien would also be put on their houses.
Families would then have to pay these property taxes back in full when
their houses are sold, plus 7 percent interest. And this interest rate
could increase.
This is a big financial risk for families that may reduce their equity,
make it difficult for a future down payment on another house, and
prevent a rightful inheritance. It is unconscionable and predatory for
state government to put families in a position to lose their homes and
equity.
I supported an alternative approach that would have provided direct tax
relief through a $400 rebate to every homeowner who paid property taxes
in 2007. The majority party rejected this idea, too.
Again, a very different approach to your property taxes.
True tax relief means paying less in property taxes – not more. It is
imperative lawmakers work not only to lower property taxes, but find
other sources of funding for essential government services.
Lawmakers also need to control state spending – which is the biggest
driver of all taxes.
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For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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