Large property tax hikes even more likely
Posted by Bob Williams - November 08, 2007In their 5-4 decision declaring I-747 unconstitutional, state Supreme Court Justices today made it legal for local governments to increase property taxes up to 30 percent this fall. Though it is unlikely that counties will take the full 30 percent right away, King County Assessor Scott Noble told KIRO radio today that several taxing districts already have talked about increasing property taxes 20 percent!
Here's how this works. In 2001, voters passed I-747 to limit increases in state and local property collections to one percent each year, unless voters approved more. By striking down I-747, the court did more than restore the 6 percent per year limit in property tax increases under Referendum 47. Their ruling allows districts to impose unused past tax capacity; in other words, what they would have been able to tax each year had I-747 not been passed by voters in 2001. That works out to an additional 5 percent increase for six years -- or 30 percent.
Hang on to your wallets!
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