It’s time property taxes went down

February 14, 2007

A little-known fact tells the story: 72 percent of the property taxes collected by the state are from assessments on single-family homes – 72 percent!  In 2005, the state collected $1.6 billion in property taxes – that’s $1.1 billion from homeowners.

But it gets worse. The total collection of property taxes in 2005 was $6.9 billion when you combine collections by local governments, state government and school districts. In Washington, if you can afford to buy a home, you’ll soon find out what the real price tag of your “American Dream” is when your property taxes come due.

Right now, the 2007 Legislature is crafting the state’s next two-year operating budget –blessed by a windfall of $1.9 billion in unexpected revenue. There is no shortage of ideas on how to spend this extra money; I think we should give it back to homeowners. 

My bill, Senate Bill 5998, recognizes that the surplus was created primarily by Washington’s booming real estate market and that higher home prices mean higher property taxes. We need to talk about who the money really belongs to, not about how many different ways we can spend it. 

Under my proposal, the surplus would be returned to the people it came from – the taxpayers. In 2008 the state’s property tax would be reduced by 40.07 percent; in 2009 the reduction would be 39.13 percent, giving $1.4 billion back in needed tax relief. 

Washington’s property tax dates back to our territorial government; it’s been in our constitution since Washington became a state in 1889. 

It took 82 years, until 1971, before senior citizens were first granted property tax exemptions depending on their incomes. It was 29 more years before a real limit for all homeowners was put on the ballot.   

In 2000, Washington’s voters approved Initiative 722. This measure rolled back assessed values to Jan. 1, 1999, and limited future increases of taxable value to 2 percent per year. It also limited non-voted property tax increases to 2 percent and rolled back certain property tax increases levied for 2000. I-722 was never implemented because it was immediately challenged and ruled unconstitutional by the Washington State Supreme Court. 

Voters spoke again n 2001 when they enacted I-747. This measure limited state and local property tax collections to no more than 1 percent over the previous year’s collections. This time the voters’ wishes were implemented, but not for long. A King County Superior Court judge threw I-747 out in June 2006 – on a technicality. Washington Attorney General Rob McKenna is appealing that decision, but its fate is uncertain. 

To make matters worse, legislation has been introduced this year to allow cities and counties to impose a property tax on vehicles; to allow counties to impose a regional property tax for schools; to increase the state property tax rate for parks; and to allow fewer voters to approve local school levies – the largest piece of most homeowners’ property tax bill. 

In addition to my tax relief bill, I’ve introduced a bill to put the I-747 cap into state law – regardless of what comes out of the court; and I’m proposing more property tax relief for senior citizens and disabled veterans. 

I also believe the Legislature should give its support to my constitutional amendment that would help people stay in their homes by controlling huge spikes in property values that dramatically increase taxes. This is not a new issue for me. I’ve introduced such legislation eight times since 1996; and every time the Legislature has neglected to take up this important issue. 

This year, my proposal, Senate Joint Resolution 8216, would freeze property values on Jan. 1, 2008, and limit reassessments to no more than 1 percent per year.  

I see this issue as a huge problem that needs to be solved. Home values are cyclical; they never have and never will level off. Sometimes values go up in small increments, and sometimes they take big leaps. But they all add up to more taxes and a bigger burden on families. This is outrageous; we simply must do something. 

It’s time property taxes went down. People who have lived in their homes for many years now have a house they couldn’t afford to buy, but they are taxed as if they could. This is just wrong! 

The Legislature needs to listen to the people. It would be such a travesty – given the $1.9 billion surplus – if the 2007 Legislature adjourns without giving homeowners much-needed and long-awaited property tax relief.

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(Sen. Benton represents the 17^th Legislative District in Clark County.)