Property taxes

Easing the pressures of property tax growth

Washington residents are feeling economically squeezed from all sides. Senate Democrats understand that. We also understand that the recent Washington Supreme Court decision invalidating the Initiative 747’s limit on property tax growth only adds to the uncertainty and worry.

The last thing families need to add to their holiday budget is another property tax increase.

That’s why we are ready to answer the governor’s call to address this issue now. We will take up the issue of property taxes -- and only property taxes -- during a one-day special session on November 29.

Under consideration will be a proposal to restore the 1 percent property tax revenue growth limit that the court nullified when it struck down I-747. Re-imposing the limit creates predictability and re-establishes the will of the voters when they handily passed I-747 in 2001.

But while I-747 was a key corrective step to the problem of property tax growth, it was not a complete solution. Even under the 1 percent cap, many Washingtonians were feeling pinched by double-digit property tax increases.

That’s why Senate Democrats will restore, but also do more.

We recognize that homeowners are now faced with too much insecurity. Rising payments on adjustable mortgages are pricing many people out of their homes and prompting mass foreclosures nationwide, at great economic cost and societal insecurity. In Washington, foreclosures have nearly tripled from the year before.

Our intent is to provide a remedy to this widespread housing insecurity by making it less costly for working Washington families to remain in their homes.

We are seeking to provide working homeowners some real relief by allowing those with mid-level incomes to defer payment on a portion of their property taxes until they sell or transfer their homes.

To do so, we will propose to broaden the state’s property tax deferral program now available for seniors or disabled persons with incomes between $35,000 and $40,000. Our deferral would extend to anyone with an income of $57,000 or less.

And we to intend to act before a looming recession in the housing market adds to the pressure. Further declines in home construction, sales and prices, combined with tighter lending conditions and a weakening job market, could create a human and economic crisis of considerable scale right here in Washington.

Those who work hard and play by the rules should have some degree of financial security and certainty. Senate Democrats begin the course to real property tax reform with these measures to be considered during the special session.

In the regular session that convenes in January, we will have more time to consider other proposals to make property taxes fairer and more predictable. Washington’s residents who work hard and play by the rules have earned this security.