From the (Tacoma) News Tribune

http://www.tribnet.com/frame.asp?/opinion/endorsements/1008b121.html

Initiative 722 vs. the constitution

Tim Eyman's fatally flawed ballot measure is wrong vehicle for addressing property taxes

We wish we could pretend that Initiative 722 - the so-called "Son of 695" - were a serious piece of legislation. It could then be judged accordingly, on the merits of what it is trying to accomplish.

One of its aims - property tax relief - certainly deserves discussion. A good argument can be made for rolling back the state property tax, and the Legislature has been inching toward such a rollback in recent years. But it hasn't moved fast enough for Tim Eyman, the sponsor of I-722.

Eyman's alternative, unfortunately, could almost serve as a poster child for the flaws of the initiative process. As written, I-722 would demolish the state's current policy of assessing property taxes on the "true and fair" market value of real estate, with a uniform rate for all Washingtonians. Over time, it would tend to shift the tax burden away from wealthier property owners and onto the backs of those less able to pay.

But we are not being alarmist: In reality, this is not going to happen. The Washington Constitution forbids it. I-722 will be struck down as unconstitutional, just as I-695 was.

I-722 is not easy to digest, because it is a veritable grab bag of provisions - most of them designed to bleed local governments. Among other things, the measure would repeal any local tax increases enacted in the last six months of 1999; eliminate the property tax on automobiles (something the Legislature has already done); limit increases in the taxable value of individual properties to 2 percent a year; and forbid municipalities from collecting more than 102 percent of the previous year's collections.

The sheer variety of I-722's provisions opens it to legal challenge, because the state constitution forbids including multiple subjects in a single bill. But the initiative's greatest legal flaw lies in its attempt to artificially cap the taxable value of property at 2 percent a year.

In the real world, individual properties rise (and sometimes fall) in market value at varying rates. Homes in Seattle's exclusive Broadmoor neighborhood, for example, have appreciated at a much faster rate over the years than comparable homes in less sought-after locations. In Pierce County, waterfront and view homes have generally risen at faster rates than similar homes without views or water-front.

The free market creates these values, not flint-hearted county assessors. I-722 proposes to abandon the market as an arbiter of value and pretend that no property appreciates faster than 2 percent a year. If it is enacted, assessors would have to pretend that the extra value of rapidly appreciating real estate doesn't exist for purposes of taxation. Over time, this would leave the owners of less desirable homes paying taxes at a higher effective rate than the owners of more desirable homes. Eyman apparently considers this justice.

The Washington Constitution begs to differ. It frowns on schemes that play favorites with property taxes. "All taxes shall be uniform upon the same class of property," says Article 7, adding that "all real estate shall constitute one class."

Voters thus have a choice: I-722 or the constitution. We recommend sticking with the constitution; it has a considerably better chance of prevailing in court.

10/08/2000

-- BB (bbquax@hotmail.com), October 18, 2000

Answers

Good stuff BB. Comment simply to move this to the next fprum page for greater exposure.

-- dbvz (dbvz@hotmail.com), January 13, 2001.

The courts seem to agree, since it is not going into effect this year for property taxes by court order.

-- dbvz (dbvz@hotamil.com), January 13, 2001.

Wait till you see I-747. This jumbo jet of a tax initiative, when passed, will STOP local governments from BLEEDING the overburdened taxpayers of this state. I told you both we would win in the end. HAHAHAHAHAHAHAHAHA!

-- Rolex Hoffmann (rolex@innw.net), January 13, 2001.