Senate Democrats unveil plan to reinstate I-747

OLYMPIA – With the Legislature prepared to begin a special session tomorrow to allay concerns about property tax growth, Senate Democrats have released their legislation to restore the 1 percent property tax limit invalidated by the Supreme Court’s ruling earlier this month to overturn Initiative 747.

“Re-imposing the limit restores a measure of stability to property tax growth,” said Sen. Derek Kilmer, D-Gig Harbor. “With mortgage payments and health-care costs going through the roof, families could sure use a little predictability in their household budgets. With the court’s ruling, it’s urgent that we act now so property taxpayers don’t feel further squeezed.”

Kilmer said the Democrats’ bill also re-establishes the will of the voters when they overwhelmingly passed I-747 in 2001.

“Voters knew what they were doing,” Kilmer said. “They were acting to make sure they weren’t taxed out of their homes.”

According to the state Department of Revenue, property owners have saved an estimated $1.63 billion in property taxes since 2001 under I-747, and property taxes this year are 7 percent lower than they would have been in the absence of the 1 percent limit. Understandably, the Supreme Court decision creates economic anxiety and uncertainty over the holidays as local jurisdictions are poised to pursue precisely the increased tax rates that I-747 was designed to limit, Kilmer said.

“Once we pass our bill, it’ll be like the Supreme Court case never happened,” Kilmer said. “It’ll have no impact at all on your tax bill.”

In the regular session that convenes in January, lawmakers intend to explore more in-depth options to make property taxes fairer and more predictable, while at the same time addressing the challenges local governments face in paying for basic services under the 1 percent limit.

A joint House and Senate press availability is set for 8:30 a.m. on Thursday, Nov. 29, on the two bills under consideration during the special session. Participating legislators will include Sen. Majority Leader Lisa Brown, D-Spokane, Sen. Derek Kilmer, D-Gig Harbor, and Sen. Claudia Kauffman, D-Kent, as well as Speaker of the House Frank Chopp, D-Seattle, Rep. Larry Seaquist, D- Gig Harbor and Rep. Chris Hurst, D-Enumclaw. Location will be determined and announced later today.

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