Benton leads effort to call special session to enact I-747 property tax limit

November 13, 2007

OLYMPIA…Sen. Don Benton, R-Vancouver, began calling on legislators today to convene a special session during committee assembly days Nov. 28-30 to enact a 1 percent limit on state and local property tax collections. 

The state constitution has a provision that allows the Legislature to call itself into session without the governor's blessing.

The 1 percent limit has been in place since voters approved I-747 in 2001, but was struck down by the Washington State Supreme Court last week. The state had appealed a King County Superior Court judge’s ruling that I-747 was unconstitutional. 

I-747 has been holding the state and local governments to a 1 percent limit on property tax collections over the prior year without a vote of the people. It was approved with a 58 percent “yes” vote. A 6 percent cap was in place at the time of the vote. 

“Not only could local governments increase property taxes to the 6 percent limit, they could actually increase them by much more,” Benton said. “The court’s decision has given them the ability to raise taxes immediately, and by more than 6 percent, by tapping into their banked capacity.  With the subprime mortgage lending crisis, and already high property taxes, it is intolerable to subject homeowners to the threat of such an enormous increase to their property taxes.  We must act quickly to prevent this from happening.” 

Banked capacity means local taxing districts have had the 6 percent taxing authority all along, and they can now tap it. It is estimated that the I-747 cap has saved property owners $1.6 billion. 

Under House and Senate Joint Rules, the Legislature may call itself into a special session with a two-thirds vote. Benton is seeking a commitment from legislators for that two-thirds vote by circulating a petition. He has the backing of legislative Republicans. 

Both Governor Gregoire and House Majority Leader Rep. Lynn Kessler have said they support the 1 percent limit.  Senate Majority Leader Lisa Brown, D-Spokane, and Margarita Prentice, D-Seattle, who chairs the Senate Ways and Means Committee, have only said property taxes will be addressed in the 2008 session. 

Benton introduced a bill during the 2007 session to enact the I-747 limit regardless of the outcome of the appeal before the Washington Supreme Court. The measure, SB 5001, was ignored by the Democrat majority in the Senate. 

After the ruling last week, Benton pledged to fight the decision with another effort to reinstate the 1 percent limit on state and local governments.  

He said at the time that voters made it clear on Nov. 6 that they have had enough when it comes to taxes and spending. 

“Property taxes can be very hard on families,” Benton said. “Between all the taxing districts, property taxes can add up to a very large bill that must be paid in two lump sums. It will be devastating to many homeowners if we drag our feet and let local governments collect their banked capacity.

"We have the opportunity to act, the time to act and the meeting is already set. All we need now is the will to
act!"

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