|
| |
Muni News
VOLUME 91, ISSUE 3 -
Fall 2001
Index | Next Article |
Previous Article
Vote “No” On Initiative 747
Measure would hit vital services
Initiative 747 (I-747) is a tax limiting measure sponsored by Permanent Offense, the
organization founded by Tim Eyman. It would limit property tax increases to one
percent per year, unless a larger increase is approved by the voters in an
election. Currently, state law allows taxing districts to increase property
taxes up to six percent per year with the approval of their elected
commissioners. A limit of one percent would not allow local governments and
local taxing districts to even keep up with inflation. Last year the consumer
price index rose 3.7% to 4% in the Puget Sound region. If I-747 becomes law,
local governments and local taxing districts will be forced to hold elections
much more frequently at an additional expense to taxpayers.
Initiative 747 would cause a huge cut in essential government services. Costs
go up primarily because there are more citizens to serve, services cost more due
to cost of living increases, and because citizens may request new or different
services. Any limitation that is lower than inflation will force our elected
officials to reduce or eliminate essential services. over the next six years.
The largest fiscal impacts would be on cities and counties; Communities whose
tax base is primarily residential will feel an especially great impact.
This disregards the fact that as one of the few states without an income tax,
Washington jurisdictions are limited in their choices for funding essential
services.
The Municipal League opposes this initiative for the following reasons:
-
According to the Washington
State Department of Revenue, I-747 would result in losses of over $1.4 billion
to local governments and special taxing districts, such as libraries, hospital
districts, fire districts, ports and even medical services, by 2007. In
addition over $400,000,000 will be lost to the state.
-
According to the Bureau of the
Census, state and local property taxes are a bit above average - per capita
property taxes were $930 in 1997, compared with the national average of $817.
And Washington is one of a small handful of states that do not have a state
income tax.
-
In King County 37% of the
taxing districts took the maximum 6% in 2000. Of these 28 districts, 18 are
fire districts. In the state 60% of the cities took the full 6% increase in
2000. Seattle, however, increased its property tax by 4% rather than the
maximum.
-
The present “limit factor” of
6% gives jurisdictions the flexibility they need. To reach this limit a super
majority vote of the legislative body is needed.
Index | Next Article |
Previous Article
|
