so why is it that i need to pay a sales tax on a used car thats already licenced in the state of washington? if the guy didnt sell the car, he wouldnt have to pay it!!

-- john (mlvc72ss@aol.com), February 29, 2000

Answers

Because it's in RCW 82.08 dealing with the state sales tax. Basically since the 30's it has been one of the primary revenue sources to tax each retail sale in the state. Since a purchase of a used car constitutes a sale, it is taxed.

Whether it is licensed or not has nothing to do with it.

-- Patrick (patrick1142@yahoo.com), February 29, 2000.

According to the WA Dept of Revenue, the sales tax was introduced in 1933 to provide property tax relief. Up until the 1930's most state and local programs were supported from property tax.

The first sales tax of 0.1% was introduced in 1933%. Old timers will tell you there was a promise never to increase the sales tax. But that was another broken promise. The sales tax is now at least 80 times higher than the first sales tax introduced.

It is also interesting to note that the Business and Occupation tax was introduced in 1935 to provide property tax relief. The B&O tax now is the second highest revenue generator for the state.

The motor vehicle excise tax (repealed with I-695) was indroduced in 1937 to provide property tax relief.

The promise of property tax relief lasted less than 10 years. Since 1944 property tax revenue has DOUBLED every 7 to 9 years. I-722 will "stop the bleading" by rolling back property valuations (for tax purposes)to Jan 1, 1999 and then allow valuation increases of the lesser of 2% or inflation. This is applies to all property. It will also exempt maintenance replacement of items like roof replacement, doors, windows, painting, etc. Remember you pay sales tax on all labor and materials purchased for your property. Those who purchase new homes pay sales tax on all labor and building materials.

So I-722 will remind the government and the people that as long as there is a sales tax on vehicles, and building materials that property tax on maintenance improvements and on vehicles will be exempt from property taxes.

In addition I-722 also reminds the state and the people that as long as there is a real estate excise tax on property that valuation increases more than the lesser of 2% or inflation will be exempt from property tax.

The real estate excise tax is paid by the seller on old construction. It is like paying an extra year of property tax. (There is a sales tax on all labor and materials for new construction.)

The state still gets the last bit at your property. When you and your spouse dies, the state reclaims the exemptions provided by the Federal government on your property.

I-722 will provide every property owner with "an insurance policy" that will allow them to know that their property valuations (for tax purposes) will be uniform and predictible. Many people have either sold their property because they could not afford the property taxes (because of increased valuations)or they are considering selling their property.

I-722 will stabalize neighborhoods and help preserve them by allowing reaonable property valuations for tax purposes. Exempting maintenance improvements will also promote neighborhood beautification and preservation.

All this will not happen without gathering the signatures required to put this important measure on the ballot. So please get an initiative and help us with signature gathering.

-- Monte Benham (rmonteb@aol.com), February 29, 2000.

"Old timers will tell you there was a promise never to increase the sales tax. But that was another broken promise. " Old timers will also tell you about tax tokens. They were aluminum coins, some with holes in the center. The largest one was worth a tenth of a cent, as I recall. The smallest was (I believe) 5 mils.

-- (craigcar@crosswinds.net), February 29, 2000.