Gregoire calls for special session

Governor wants law reinstating cap on property tax increases

By Adam Wilson | The Olympian • Published November 20, 2007

Gov. Chris Gregoire on Monday called for a special session of the Legislature next week to reenact a limit on increases in property tax revenue struck down by the state Supreme Court.

She also suggested a property tax break for families below the state's median income of about $48,000 a year.

A recent state Supreme Court decision threw out the 1 percent limit, tempting ports, cities and other governments to consider larger tax increases to pay for services.

Legislators will be in town next week for committee meetings, and Republicans were the first to say it would be simple to call a session to pass a bill making the 1 percent cap on increases law again.

Gregoire agreed and set the special session for Nov. 29.

"The citizens of our state expect that we will expeditiously deal with this subject and this subject only, to give them certainty about their property tax bills for the upcoming year," she said in a letter to Democratic and Republican leaders.

"Most local governments are adhering to my request that they not go above the 1 percent limitation that has been in effect since 2001," she said. "However, we have no assurance that all local governments will stay within the 1 percent lid."

That was a reference to interest from Olympia, Shoreline, the Port of Seattle and other governmental entities in raising tax revenue by more than 1 percent.

While none has actually done so, local elected officials have said the lid on tax increases has hurt services such as police and fire departments.

The Olympia City Council is scheduled to discuss the issue tonight.

State lawmakers, however, don't want to undo what the voters did in 2001 by approving Initiative 747.

"The constituents want it. They don't want us messing around with it," said Lynn Kessler, leader of the Democratic majority in the House.

Gregoire said Attorney General Rob McKenna has decided not to appeal the Nov. 8 court ruling throwing out I-747. She said two bills will be proposed next week — one to reinstate the 1 percent cap, and another to create a "property tax deferral for all families under our state's median income level."

According to the U.S. Census, the median household income in Washington was $48,438 in 2004.

Kessler said that her seat mate from Hoquiam, Sen. Jim Hargrove, had been suggesting such a deferral, which might allow qualified people to avoid paying property taxes.

Gregoire offered no details about the tax break in her letter, but the state is expecting a budget surplus, which might provide funding for it.

Republican Dino Rossi, who is running for governor in next year's election, criticized the Democrat's timing. He noted he demanded a session more than a week ago.

"I'm glad she has called the special session because we need to protect the will of the voters, but I have a feeling she only took this step out of political expediency, not concern for the taxpayers," Rossi said in a statement.

Adam Wilson covers state workers and politics for The Olympian. He can be reached at 360-753-1688 or awilson@theolympian.com.