One percent back from the dead

So much for the strategy of suing your way to higher tax authority. Governor Gregoire just announced she'll be requesting that the legislature not only restore a property tax cap, but the ONE PERCENT cap adopted by voters in 2001. Kudos Governor!

From the Governor's press release:

I plan to push for legislation that establishes a one percent cap on annual property tax increases. I am already in discussions with legislative leaders on the best next steps to make sure we can implement this correctly.

I am urging local leaders and taxing districts to not increase their tax levies, based on the court decision, to give the legislature time to act.

The voters approved Initiative 747, it has been in place for five years and I think we need to leave it in place.

I wonder what impact this release from Dino Rossi had on the Governor's decision:

If Christine Gregoire is serious about providing property tax relief and reinstating the will of the people, then she will act now to cap property tax increases at one-percent. This cannot wait until January.

Homeowners are threatened with a huge tax hike and local governments and tax districts now have the ability to retroactively tax up to the 6 percent limit. This would be devastating to many senior citizens and low-income people who are being taxed out their homes.

Simply asking local governments to not raise taxes is not enough. It is time for Gregoire to turn her words into action and call a one-day session to protect the will of the taxpayers.

Comments

[Josef]

1 word: BLINK.

Take most of the credit, if you would please, Jason :-).

[Tim Eyman, I-960 co-sponsor]

Here's what we sent to everyone on Friday morning at 10:12 AM:

-----Original Message-----
Sent: Friday, November 09, 2007 10:12 AM
Subject: Msg to Gov & Leg: here's the minimum

November 9, 2007

To: House & Senate elected officials & Governor Gregoire (cc'd to our thousands of supporters throughout the state & all media outlets (reporters, columnists, editorial writers, and others in newspapers, radio, and TV)
From: Tim Eyman, Jack Fagan, Mike Fagan, & Mike Dunmire

RE: Message to Governor & Legislature: here's the minimum

The liberal justices on the state supreme court did you no favors yesterday. This is a powder keg that will explode if you ignore the voters clear no-new-taxes message on Tuesday (passage of I-960 and rejections of Prop 1, 4204, and numerous other local tax measures). Even with the people's 1% limit, Washington state's property tax burden is still crushing everyone. All of you know this because nearly 50 bills were introduced in the last legislative session TO LIMIT PROPERTY TAXES EVEN MORE THAN REQUIRED UNDER I-747. In other words, even with the people's 1% levy limit in effect, you were discussing going further and reducing property taxes.

Here's why the people's 1% levy limit is a given:

In 1999, we sponsored I-695 which required voter approval for every tax and fee increase by state and local governments and $30 tabs. After the court rejected I-695, you adopted $30 tabs but you ignored the voters demand for I-695's voter-approval-for-tax-and-fee-increases provision. Pollster Stuart Elway has consistently said his polling showed I-695's voter approval provision had EVEN HIGHER support than $30 tabs.

Voters demanded it but didn't get it.

Prior to I-695 taking effect, local governments went on a tax and fee hike rampage, jacking up everything in sight from November through December 31, 1999. So in 2000, we sponsored I-722 and it:

* Nullified all those last minute tax and fee increases
* Imposed a 2% government levy limit and a 2% individual property tax limit
* Repealed banking authority (RCW 84.55.092) which allows governments to unilaterally impose levy increases above 2% without a vote of the people

Voters overwhelmingly approved it with 55% support but once again, the courts said no, so voters didn't get any of these protections.

So, at this point, the voters demanded voter approval for tax and fee increases by state and local governments, repealed pre-695 revenue hikes, demanded a 2% levy limit and a 2% individual limit, and repealed banking authority -- AND THEY DIDN'T GET ANY OF THEM.

Voters were livid. The voters' clear demands were being disregarded, dismissed, and disrespected.

In response, many supporters in 2001 wanted us to go further and reduce property taxes, but we went with a compromise - no property tax reductions but a 1% levy limit which doesn't include the property tax revenue government gets from new construction, improvements, annexations, and real estate excise taxes and with an additional exception for anything above 1% approved by voters at an election. It got 58% support, the largest level of support for any initiative we've ever done. It was a crystal clear mandate.

So the 1% levy limit is the compromise -- 1% is a given. But because of the court's ruling, the people's 1% levy limit doesn't go far enough:

* You've got to either repeal banking authority (remember, voters
repealed it in 2000 with I-722) or require voter approval at an election for anything above 1% including unused banking capacity. The gigantic stockpiled total that's now available to local governments is staggering, accumulating over the past six years. In 2002, the Port of Seattle jacked up their levy 37% using banking. You've got to make sure that 1% means 1% and if there's anything higher, it needs voter approval.

* You've got to close the loophole in I-747 that you created in 2007. King County Assessor Scott Noble was the whistleblower on this one and he advocates this loophole be closed. After he highlighted it and the Seattle Times slammed you for it, you said that wasn't your intent. But making "levy lid lifts" permanent even if governments promised during the campaign that they'd only be temporary is simply unacceptable.

* You've got to do this now. A special session is essential. King County Assessor Scott Noble has already been contacted by local governments who say "we want it all and we want to be first in line." January is too late. Rep. Ed Orcutt and Sen. Don Benton have already reported that state representatives and state senators must go to Olympia at the end of November for 'committee assembly' anyway. Do it then and get it out of the way.

You don't like us - but you do like your jobs. The court has given each of you the chance to prove that you got the no-new-taxes message from Tuesday's election. When it comes to the people's 1% limit, each of you will show whether you're a representative of the people or a representative of the government.

We're already hearing "Voters said 1%, courts said 6%, let's compromise at 2%." The taxpayers have already substantially compromised. Governor Gregoire, Speaker Chopp, Majority Leader Brown, 2% is DOUBLE what voters want. State and local governments have learned to live with the people's 1% limit. Levy lid lifts above 1% by local governments have a 70% success rate with voters. So there's no going back.

You already know taxpayers are demanding PROPERTY TAX REDUCTIONS - so you better do the minimum right away and hope and pray that'll suffice going into the 2008 election. Just do the right thing, listen to the voters, and take this issue off the table in the 2008 election.

Regards, Tim Eyman, Jack Fagan, Mike Fagan, & Mike Dunmire