November 29, 2007

OLYMPIA… Members of the Senate Ways and Means Committee did not approve the banked capacity disclosure amendment offered by Sen. Mike Carrell, R-Lakewood, during a special session of the Legislature Thursday. 

Republicans called for the special session to implement the 1-percent property tax limit originally enacted by Initiative 747 in 2001.  The State Supreme Court recently overturned I-747 on a technicality. 

“I’m obviously disappointed,” Carrell said after the hearing, “because I can’t see a reason why the majority would want to keep the people from knowing how big of a tax bill their local governments could hit them with.” 

Carrell’s amendment would have required local taxing districts to disclose how much banked capacity each district has stored.  Carrell proposed similar legislation in 2002 with 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, and in 2005, Carrell proposed Senate Bill 5299. 

Before I-747, taxing districts were taking 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, and storing it as banked capacity.  Even with a 1-percent limit on property taxes, local taxing districts can still collect some or all of the capacity they had banked before 2001. 

“We always hear talk about transparency and honesty in government, but it is apparent today that that only applies to certain things.” Carrell said.  “Regardless of how someone feels about keeping or eliminating banked capacity, I want to shine some light on it so that we all know what percentages we’re talking about.  I believe the people have a right to know what percentage their property taxes could potentially increase, and I have a bill for the 2008 session that would do that.” 

Current estimated levels of banked capacity statewide total nearly $108 million, and Pierce County alone could collect $7,136,500 in banked capacity. 

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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