WA Supreme Court Throws Out Property Tax Cap

Local News Highlights

Arizona Tax Revolt commentary:

Some have asked why the Arizona Tax Revolt chose to stick with and enhance the present levy limits rather than proposing a “simple to read” Prop 13 style tax cap. The following article shows that the courts are likely to invalidate any measure which would impose one or more tax caps as they provide no means for government to provide necessary services in the face of increasing costs. In addition to a 2% revenue increase Arizona taxing entities will also be allowed revenue from new improvements and growth. And let’s not forget that under our property tax levy rollback measure we voters can approve additional increases with a 2/3 vote in a Nov. election to assure that government has the level of funding the voters deem to be reasonable.

Marc Goldstone, Chair.
Arizona Tax Revolt

Published: November 9, 2007
Austin Jenkins

A one-percent cap on property tax increases in Washington has been ruled unconstitutional. A divided Washington State Supreme Court today (Thursday) threw out Initiative 747. Voters approved the measure back in 2001. Olympia Correspondent Austin Jenkins examines the impact.

IN WHITMAN COUNTY, HOME TO WASHINGTON STATE UNIVERSITY, KRISTIE KIRKPATRICK IS CHEERING THE HIGH COURT'S RULING.

KIRKPATRICK: "Really positive change for us."

KIRKPATRICK DIRECTS WHITMAN COUNTY'S LIBRARY SYSTEM, WITH THIRTEEN BRANCHES. THE SYSTEMS RELIES ON PROPERTY TAXES FOR FUNDING. KIRKPATRICK SAYS THE ONE PERCENT CAP DID NOT KEEP UP WITH RISING COSTS. SHE HAD TO BALANCE THE BOOKS IN PART BY ELIMINATING AN EMERGENCY SAVINGS ACCOUNT.

KIRKPATRICK: "Not to be able to have a little bit of money aside in case the roof falls in or in case our computer system dies. It's made me really unsettled."

WHITMAN COUNTY JOINED ADVOCATES FOR THE POOR AND OTHERS IN THE LEGAL FIGHT TO OVERTURN 747. THE CASE HINGED ON WHETHER VOTERS WERE MISLED. IN A FIVE TO FOUR DECISION, WASHINGTON'S HIGH COURT SAID THEY WERE. THAT THE IMPACT TO COUNTIES AND CITIES WAS MUCH MORE DRASTIC THAN THE BALLOT MEASURE SAID IT WOULD BE. WHITMAN COUNTY COMMISSIONER GREG PARTCH IS PLEASED WITH THE RULING. BUT CAUTIONS AGAINST CITIES AND COUNTIES IMMEDIATELY RAISING PROPERTY TAXES.

PARTCH: "We want to do what's right for the state and we don't want any wholesale run to the bank type things. That's not in our best interests."

BUT TIM EYMAN PREDICTS THAT'S EXACTLY WHAT WILL HAPPEN. HE SPONSORED INITIATIVE 747.

EYMAN: This is absolute chaos. I mean you're dealing with local governments that have been wanting to jack-up property taxes radically for the last six years and it's going to be like pigs at the trough."

BACK ON THE PALOUSE, LIBRARY DIRECTOR KIRKPATRICK CONFESSES TO THE TEMPTATION. SHE'S ABOUT TO MAKE NEXT YEAR'S BUDGET REQUEST.

KIRKPATRICK: "My guess would be that we would ask for the maximum amount because you know we're facing a one-million dollar building project that we don't know how to fund."

BUT KIRKPATRICK MIGHT NOT GET WHAT SHE WANTS. WASHINGTON GOVERNOR CHRIS GREGOIRE SAYS SHE'LL WORK WITH THE LEGISLATURE NEXT JANUARY TO REINSTATE SOME SORT OF PROPERTY TAX CAP. I'M AUSTIN JENKINS IN OLYMPIA.