OLYMPIA… In anticipation of the Legislature’s special session this week to address the state Supreme Court’s overturning of the 58 percent voter-approved Initiative 747, which limits property tax increases to 1 percent per year, Sen. Mike Carrell, R-Lakewood, issued the following statement:

“I’m extremely pleased to hear that the governor has heeded our call to do the right thing and hold this special session.  We’ve been asking her to call a special session since the Supreme Court took up the issue last year, and it’s very gratifying to know that she agrees with us and with the taxpayers of the state of Washington.

“The timing couldn’t be better, as local taxing districts are getting ready to submit their budgets, which determine the amount of taxes levied by each district.  If the governor waited to address this issue until the 2008 regular session, local governments would already be mailing out their tax bills and it would be too late.  Holding a special session during the legislative assembly days this week provides a perfect opportunity to address this issue since we’re already going to be in town, and it won’t cost taxpayers a dime.

“I am concerned, however, about the issue of ‘banked capacity,’ which is the ability of local taxing districts to take the difference between 1 percent and what they would have charged had I-747 not taken effect in 2002 (generally about 6 percent), and ‘bank’ it for collection at a later date.  That’s a 5-percent-per-year increase from 2002 to 2007, for a total of 30 percent.  There’s been talk about allowing local governments to collect banked capacity even after we enact a 1-percent cap during the special session.  I am not in favor of that.  The voters of this state approved I-747 back in 2001 to limit property tax increases to 1 percent per year.  Even though the state Supreme Court felt that the voters ‘didn’t know what they were voting for’ when the court overturned the measure on a technicality, I believe that Washington state voters are smart people who knew exactly what they were voting for.  Allowing local governments to collect any more than the 1-percent voter-approved limit is a tax increase that would go directly against the will of the people.”