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Orcutt bill to correct mistaken interpretation of
levy lid lift law
Measure
would make levy lid lifts temporary unless expressly stated otherwise
In his first bill of the
2008 legislative session,
Rep. Ed Orcutt
has introduced legislation to correct a mistaken interpretation of
property tax legislation adopted last year that could result in
permanent tax increases on Washington homeowners and businesses.
Last year, the Legislature
approved
Senate
Bill 5498, which changed the law to allow more taxing districts to
ask voters to approve levy lid lifts for up to six consecutive years.
The new law allows fire, library and other taxing districts to use
authority previously allowed for cities and counties only. Previously, most taxing districts could
only increase regular property tax levies by more
than 1 percent for just one year upon voter approval. Following passage of the Senate bill, which Orcutt opposed, the
Department of Revenue (DOR) said all multi-year levy lid lifts are
permanent unless expressly noted as temporary.
Orcutt, R-Kalama, said
DOR's interpretation of the law is wrong. So today, on the first day of
the 2008 session, Orcutt introduced
House Bill 2627 that would ensure taxpayers are not unknowingly hit with a
permanent tax increase.
"Many citizens are unaware
of the legislation passed last year and the effect it will have on them.
I continue to hear from citizens who have great concerns about
ever-increasing property taxes, the burden it places on them and their
ability to afford their homes," said Orcutt, ranking Republican on the
House Finance Committee.
"The legislation passed
last year was never intended to allow for a permanent tax increase. It
was only supposed to be temporary, which would require local governments
to come back to the voters and again ask their permission in order to renew it,"
added Orcutt. "I'm very disappointed with the Department of Revenue's
interpretation. However, I'm running legislation to make it very clear
that unless the local government tells you specifically that the levy
lid lift would be a permanent tax increase, it would in fact be
temporary. They will have to come back and ask you again before they can
continue to collect that tax increase."
Orcutt, who led the charge
for a special session in November in which the Legislature reinstated
the 1 percent levy limit of Initiative 747, said the DOR
misinterpretation continues to add fuel to a growing revolt over
property tax increases.
"I met with a large group
of people today on the steps of the Capitol who are very concerned about
their escalating property tax bills. If the Legislature fails to address
the problem of unaffordable property taxes this session, I believe it
will add to the perfect storm that has been brewing, and leave citizens
with no choice but to revolt at the
ballot box," Orcutt warned. "The best thing we can do is hold the line on
tax increases and increased taxing authority at all levels."
House Bill 2627 has been
referred to the House Finance Committee for further consideration.
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For more information, contact:
John
Sattgast, Senior Information Officer: (360) 786-7257
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