Fate of I-747 property tax cap being argued today, Benton says the Legislature should have acted

May 8, 2007

OLYMPIA…Last December, Sen. Don Benton, R-Vancouver, introduced legislation to preserve the Initiative 747 cap on property taxes on behalf of Washington’s citizens who approved the measure with a 58 percent “yes” vote in 2001. 

The measure, SB 5001, was never given a hearing by the chair of the Senate Government Operations and Elections Committee. Homeowners now face the possibility of higher property taxes if the state losses its appeal. 

The Washington State Supreme Court is hearing oral arguments today on the challenge to I-747. 

“I-747 was thrown out by a judge on a technicality – this is an insult to Washington voters,” Benton said. “My bill would have kept the initiative’s 1 percent cap in place – even if the state loses its appeal to reinstate Initiative 747.” 

I-747 prevents local governments from increasing property tax collections by more than 1 percent over the prior year without a vote of the people. 

Although I-747 was approved in November 2001, it wasn’t challenged in court until 2005. In June 2006, King County Superior Court Judge Mary Roberts declared the measure unconstitutional because it didn’t state in full the law it was amending. The state filed an appeal to Robert’s decision. 

The initiative was meant to amend the 2 percent cap on property tax collections put in place by voter approval of Initiative 722 in November 2000. However, by the time I-747 got to the ballot, I-722 had been thrown out because it addressed more than one issue -- something that is not allowed under the Washington State Constitution. 

As a result, I-747 amended the previous cap of 6 percent, and that law was not part of the initiative. Judge Roberts said the voters “were misled.” 

“Saying that voters were misled is absurd,” Benton said. “They wanted a 1 percent cap, they didn’t care which law they were amending. Owning a home has always been an American dream. Now it can be a nightmare because of skyrocketing assessments followed by skyrocketing property taxes. It’s a black hole that keeps getting bigger.” 

Benton led the effort in 2000 to preserve the repeal of the motor vehicle excise tax (MVET) when Initiative 695 was ruled unconstitutional because it dealt with more than one issue. Voters approved I-695 in 1999 with a 56 percent “yes” vote. Before the 2000 session adjourned, the initiative was declared unconstitutional. In response, Benton pushed for passage of Senate Bill 6865 to repeal the MVET. The measure passed and was signed into law on March 31, 2000. 

“Preserving the 1 percent cap should have been a top priority for the Legislature this year,” Benton said. “We have a duty to protect the voters’ wishes.”

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