Benton files
property tax bill that eliminates all banked capacity
November 28, 2007
OLYMPIA…Sen.
Don Benton, R-Vancouver, who led the effort for a special
session to reinstate Initiative 747, filed a bill today to
protect homeowners from huge jumps in property taxes by
eliminating all banked capacity.
“The so-called I-747 bill from the
governor is not a true 1 percent cap. It only eliminates banked
capacity from when I-747 took effect,” Benton said. “This leaves
a huge loophole for local governments to collect anything they
didn’t collect under the old 6 percent limit.
“Just last night, the Port
Townsend City Council voted to exceed the 1 percent limit by
dipping into the city’s banked capacity. If we don’t eliminate
all banked capacity, who knows how many other local governments
will join the money grab.”
Prior to the passage of I-747,
local governments’ ceiling for raising property taxes was 6
percent over the previous year’s collection. The 6 percent cap
was enacted by Referendum 47 in 1997.
Before 1997,
property taxes increases in Washington state were limited to the
lesser of inflation or 6 percent, unless voters approved a
higher number. In 1997, Referendum 47 allowed local taxing
districts to increase property taxes faster than inflation, but
still subject to the 6 percent limit.
“The ability of local governments
to tax backwards from 2002 to 1997 to use up their banked
capacity would be devastating to many families,” Benton added.
“A bill that doesn’t protect people from this time bomb is
nothing but a sham.”
Even with the 1 percent limit in
place, tax collections in 36 of Washington’s 39 counties
exceeded the cap because of voter-approved levies and taxes on
new construction. The biggest jump was in Columbia County where
property owners paid $4.5 million in property taxes in 2007, a
22.3 percent increase over 2006.
Other significant increases:
Ferry County – 14.2 percent;
Franklin County – 13.9 percent; Island County – 13.8 percent;
Skamania County – 13.6 percent; Kitsap County – 10.9 percent;
Whatcom County – 10.6 percent; Snohomish County – 10.1 percent;
Pierce County – 9.6 percent; Douglas County – 9.2 percent;
Kittitas County – 9.2 percent; Clallam County – 6.9 percent;
Clark County – 6.5 percent; Yakima County – 6.3 percent; King
County – 5.8 percent; Spokane County – 5.5 percent and Asotin
County – 5.2 percent.
However, it's important to note
that I-747 has accomplished its primary goal of providing
meaningful and sizable tax relief. Prior to I-747, the statewide
average tax rate was $11.32 per $1,000 of home value. It is now
$10.48. Even in Columbia County, the tax rate dropped from $14
per $1,000 of home value to $11.69.
Prior to I-747, the average
homeowner in Clark County paid $13.74 in property taxes per
$1,000 of home value. Today that figure is $10.25.
“I wonder how many people would
have been taxed out of their homes without I-747,” Benton said.
“And I wonder how many will be taxed out of their homes if the
Legislature doesn’t completely stop all banked capacity.”
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Additional contact Penny
Drost at (360) 786-7522
or
penny.drost@leg.wa.gov
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