By Kevin Hanson-The Courier-Herald
The Washington State Supreme Court might have struck down a mandate that cities limit property tax increases to 1 percent annually, but don't expect local jurisdictions to jump at the opportunity to grab additional dollars.
Local governments throughout the Plateau are well into the budgeting process for 2008 and none seem inclined to go beyond the 1 percent limit.
For years, cities could impose property tax increases up to 6 percent each year, but that plan was halted due to the Tim Eyman-sponsored Initiative 747. The measure passed in November 2001 with 57 percent support, was found unconstitutional by a lower court, but was quickly imposed by a Legislature that accurately sensed which way the political winds were blowing.
Cities dealt with tighter purse strings for six years. But, on Nov. 8, the state's highest court upheld a King County Superior Court ruling.
Enumclaw Mayor John Wise said the city will be holding the line on taxes. “There's no suggestion from the council or request from the mayor's office” to go higher than 1 percent, he said.
In Buckley, City Administrator David Schmidt said “there were questions from the council, asking what options were available.” But, he said, the council agreed the wishes of the public dictated nothing more than a 1 percent increase.
Gwendolyn Voelpel, now in her third week as Black Diamond's city administrator, knows her the city council feel in that small town.
“They've been frugal for so long,” she said of the current government, “they're not planning on going beyond the 1 percent.”
Statewide, political leaders quickly jumped on the populist bandwagon and have advocated that taxing districts pay heed to the voters' desire.
Gov. Chris Gregoire made her intentions clear early. “I plan to push for legislation that establishes a 1 percent cap on annual property tax increases,” she said in a prepared press release. “The voters approved Initiative 747, it has been in place for five years and I think we need to leave it in place.”
Republican Dino Rossi, already on the campaign trail for a second run at the governor's office, has argued that lawmaker's shouldn't waste any time. He's pushing for a special session of the Legislature to address the issue of making the 1 percent limit permanent.
Attorney General Rob McKenna, whose office defends initiatives and other state laws when challenged, said he was concerned by the 5-4 ruling because of its chilling effect on the people's right to initiative.
“While I respect the court's decision, I am disappointed,” McKenna said. “First, because it overturns the will of the people in approving property tax relief through Initiative 747, and second, because it allows a challenge to an existing law to sidetrack the initiative process.”
Both Rep. Chris Hurst, D-Greenwater, and Sen. Pam Roach, R-Auburn, from the 31st Legislative District intend to resurrect bills that will put the 1 percent cap in the state law.
“I think the court ruling is an error,” Hurst said. “People have a hard time paying property taxes. I understand some taxing districts need taxes, but are we going to push people who are living on the edge?”
Hurst said his bill, which he co-sponsored with Rep. Ed Orcutt, R-Kalama, could have been moved forward in the last session, “but we thought there was only about a 20 percent chance the court would rule the way it did.”
Hurst said the governor might call a special session in December if taxing districts try to take advantage of the ruling before the Legislature has an opportunity to act.
“I'm not buying that cities can't solve this problem,” Hurst said. “This is not a problem the Legislature created. This was a citizen initiative. I'm hearing from middle income and senior citizens saying they can't afford higher property taxes. I haven't had a single wealthy person call me yet.”
Taxing districts will now revert to the law as it stood prior to passage of I-747, meaning they now have the authority to increase property tax levies by up to 6 percent a year. And, because the ruling is retroactive
