February 16, 2007

OLYMPIA…A bill sponsored by Sen. Don Benton, R-Vancouver, to give 75 percent of the revenue surplus back to taxpayers received a public hearing in the Senate Ways and Means Committee on Feb. 15.

Under the provisions of Benton’s measure, Senate Bill 5998, the state property tax would be reduced in 2008 by 40.07 percent and by 39.13 percent in 2009 – giving taxpayers $1.4 billion in needed tax relief.

In testimony before the committee, Benton said he knew the committee heard from people all the time about how to spend the surplus, so he thought it might be refreshing to hear a different point of view.

“This a pretty simple bill actually,” Benton said. “As we all know, we have about a $1.9 billion surplus that is growing and this year one of the biggest questions being asked is what we are going to do with the money. My bill answers the question by giving 75 percent of the surplus back the people who made the surplus possible in the first place, the taxpayers of the state of Washington – and more specifically property owners, who account for a large piece of that revenue through property taxes.”

Benton pointed out to the committee that the Legislature has worked for years with revenue shortfalls and depended on taxpayers to see the state through those tough times.

“When we have had revenue shortfalls, the very first place we’ve looked is to the taxpayers. So, it makes sense to me now in some fairly good economic times that we give a portion of the surplus back to the people who helped us get through the tough times.”

Benton noted in his testimony that over the last five years, the state’s operating budgets have increased by 33.5 percent, while the state’s population has only increased by 18.9 percent. 

“Our budgets are growing at almost double the rate of our population, and I think it’s time we took a step back,” Benton said. “In 2005, the state collected $1.6 billion in property taxes, $1.1 billion of that came from homeowners. Property taxes are a serious problem in this state.” 

Benton said he hoped the Legislature would act before a repeal of the property tax ended up on the ballot like the motor vehicle excise tax did.  

“I hope we can act before this issue gets out there in a form that will be very difficult to deal with,” Benton said. 

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Additional contact Penny Drost at (360) 786-7522
or penny.drost@leg.wa.gov