November 28, 2007

OLYMPIA… The Washington State Legislature will meet for a special, one-day session tomorrow to reinstate the property tax limits originally enacted by Initiative 747 in 2001.  Sen. Mike Carrell, R-Lakewood, is proposing an amendment that would require local taxing districts to disclose how much banked capacity each district has stored up prior to 2001, when I-747 was enacted. 

“In 2002, I-747 took effect and limited taxing districts from raising property tax revenues more than 1 percent per year,” Carrell said.  “The state Supreme Court overturned I-747 on a technicality, but even before the initiative, taxing districts were storing the difference between the percentage that they raised property taxes each year and the maximum percentage allowed under the law that they could have raised taxes.  That amount is called banked capacity, and it accumulates each year.  Even if we reinstate the I-747 property tax limits, those districts can still collect some or all of the capacity they had banked before 2001, when I-747 was enacted.  That could mean a huge tax increase for homeowners, and I think the districts should disclose what that amount is.” 

Carrell has proposed this type of legislation before.  In 2002, Carrell proposed House Bill 2649, which passed the House unanimously but died in the Senate.  In 2003 and 2004, Carrell proposed House Bill 1133, which again passed unanimously in the House twice, and died in the Senate twice.  In 2005, Carrell proposed Senate Bill 5299. 

“We’re always talking about transparency in government and dealing honestly with the public, but taxing districts are not required to tell their own taxpayers how much they could charge them if they wanted to,” Carrell said.  “This special session is intended to address one thing - property taxes - and now is the perfect time for the Legislature to stand behind the taxpayers by making local taxing districts reveal how much banked capacity they have.” 

Carrell will propose his amendment during a meeting of the Senate Ways and Means Committee Thursday, November 29, scheduled for 10 a.m. in the John A. Cherberg Building on the Capitol Campus in Olympia. 

— 30—

Sen. Mike Carrell represents the 28^th Legislative District, which includes Lakewood, Steilacoom, University Place, DuPont, Fircrest,  and parts of Tacoma, Fort Lewis, and McChord Air Force Base.

For more information contact
Erich R. Ebel at (360) 786-7395