Yesterday's state Supreme Court decision filled the news and opinion pages today.
The Seattle Times headline, "Higher taxes? Court clears way," nicely captures voter concerns. The Legislature will clearly have to deal with it in January.
Republicans warned that huge tax increases are in the offing.
Democrats, who control the state Legislature and the governor's office,
vowed to pass legislation early next year to protect taxpayers.
Times reporters Andrew Garber and Ralph Thomas put some numbers to worst case scenarios.
Bellevue has enough banked capacity that, coupled with the 6 percent
allowable increase, it could raise property-tax collections by nearly
50 percent, said King County Assessor Scott Noble.
Seattle could increase tax collections by nearly 28 percent, while
King County could bring in 13 percent more tax revenue, Noble said.
Here's a helpful Times Q&A.
The Spokesman-Review has this story by Richard Roesler, with a good reality check from the revenue department.
Suggestions by I-747 proponent Tim Eyman and others that total
property taxes could immediately spike by 30 percent are not true,
state Department of Revenue spokesman Mike Gowrylow said. The vast
majority of local property taxes are from large districts that –
barring a supermajority vote by the officials in charge – are limited
to increasing at the rate of inflation. Their total extra taxing
capacity in the wake of Thursday's ruling is about 8 percent, he said.
Also,
he said more than a third of the average property tax bill is for
voter-approved tax levies, like schools and some fire districts, which
are unaffected by Thursday's ruling.
"Yeah, property taxes can go
up more than they have in the past," Gowrylow said. "But in no way are
your local property taxes going to go up 30 percent. It just can't
happen."
That's probably not enough assurance for most voters, particularly after passing I-960 Tuesday.
Neil Modie's story in the Seattle P-I sums it up right from the start.
Tossing a potential grenade into the 2008 political scene, a divided
state Supreme Court ruled Thursday that Initiative 747, a 2001 measure
limiting property tax growth to 1 percent a year, is unconstitutional.
In the Olympian, Brad Shannon makes a similar point.
... the court threw a potential bomb
to the Legislature — just in time for the 2008 legislative session and
a campaign season already under way.
Grenade, bomb, hot potato, whatever: the decision alters the 2008 political landscape. It's unlikely lawmakers will simply reinstate I-747 as passed, and even that would not end the discussion. A lot of folks objected to the 1 percent cap, including key Democratic leaders and constituencies.
MORE Here's the governor's statement on the court decision, with this sentence foreshadowing the session.
I believe that it is our responsibility to move quickly, recognizing
taxpayers’ concerns and reinstating the will of the voters.