Legislature welcomed with anti-tax rally

BY BRAD SHANNON | THE OLYMPIAN • Published January 14, 2008

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About 50 property-tax protesters welcomed the 2008 Legislature to Olympia today with a “tea party” rally in the rain on the Capitol steps.

Activists Shelley Taylor and Jill Willauer of Sequim organized the event, trying to send a message to lawmakers that too many people feel the pressure of rising property tax assessments and want relief.

“No more. This gravy train is stopping,” Taylor said, urging the crowd to copy her refrain.

A series of lawmakers introduced by talk-radio host Mike Siegel laid out arguments for reducing the tax burden. Siegel called the property tax “an illusion” because it is levied against unrealized property values, something the Internal Revenue Service does not do with stocks.

“Are you tired of having your pockets picked?” Siegel hollered.

The issue of property tax is on lawmakers’ minds this year – especially after a special legislative session in November to re-enact a 1 percent cap on local governments’ increases in property tax collections not specifically authorized by voters. Lawmakers also approved a tax-deferral program for lower-income homeowners, but critics complain those taxes still need to be paid with interest when a home is sold.

But what kind of further relief is achievable is a big question this year. Senate Democrats have been interested in a tax exemption for the first $50,000 to $100,000 of valuation of a home, and others want to give homeowners a tax rebate if their property-tax bill exceeds a certain portion of income. But those could require a constitutional amendment, which might push them out to 2009.

And in the House, there are proposals that could freeze property tax valuations and limit future increases until a home was sold.

“They have an issue that is valid and certainly people across the state are concerned about the property tax,” said House Majority Leader Lynn Kessler, D-Hoquiam. She has been co-sponsor of a measure in recent years that would freeze property valuations for tax purposes, allowing small yearly increases.

Activists offered no clear solutions. Wynn Cannon, Bellevue-based chairman of the League of Washington Taxpayers, said he and others are drawing up an initiative that would reduce taxes by up to 30 percent across the board. Details are still being worked out, said Cannon, who has tried unsuccessfully to get measures onto the ballot before.

Rep. Ed Orcutt, R-Kalama, said he wants to limit the ability of local governments to raise levies by large amounts without a vote of the people. He also said 37 percent of property taxes are voter-approved, so voters need to study their local governments’ proposals carefully.

“Be diligent. Study the issues. Make sure you understand,” Orcutt said.

Speakers included state Republican Party chairman Luke Esser, Republican Sen. Mike Carrell of Lakewood, Republican Sen. Pam Roach of Auburn, and Rep. Jim Dunn, a Vancouver-area Republican. Dunn insisted that majority Democrats are “wasting our money.” He went on to complain about overreaching government, saying it was “taking over our lives, our family values, our daily lives.’’

Willauer, co-founder of the Predictable Tax group that organized the rally, said she had no specific solution, but said she lives on a fixed income and figures her rising tax bills will eventually “catch up with my fixed income.’’

“I think there could be a more fair way than the property tax,” Willauer said with a nod to the Legislature. “It’s their job – figure it out.’’