From the Director: Court rules I-747 Unconstitutional

I-747 had placed a 1% cap on the growth of the property tax for any jurisdiction excluding new construction. The Initiative was approved by the voters in November of 2001 by a margin of 58% – 42%.

The judge found I-747 unconstitutional because it referenced I-722 which was declared unconstitutional by the Supreme Court prior to vote on I-747. I-722 was approved by the voters in November of 2000 and limited the property tax growth to 2%. Prior to I-722 the property tax cap was 6%. Since I-747 referenced I-722 it was implied the decrease in the property tax cap was from 2% to 1% but in reality it was from 6% to 1% given I -722 was unconstitutional and not in law at the time of the vote on I-747.

The State Attorney General, who is charged with defending state law including those approved by initiative, has indicated he will appeal to the Supreme Court and seek quick action. Some in Olympia believe the Supreme Court will overturn this decision, others believe it will stand. Some note this will be addressed prior to the 2007 Legislative session, others do not.

Regardless, many legislators have already outlined their positions: some seeking reinstatement of the 1% cap and others seeking a cap near or at the inflation level. The Governor has indicated the cap needs to be examined and a level above 1% may be more appropriate. These are initial reactions and much more discussion will be held on this issue by all the parties over the next weeks and months.

The Association’s Board of Directors has authorized an amicus brief in support of the plaintiffs overturning I-747. The Board has also instructed staff to work with the Governor, Legislature and other interested parties as proposals are developed to provide a new cap. The Board is seeking a proposal that insures the public is well informed on property tax increases and provides significant flexibility to local governments in establishing their local tax base.

Please watch for updates on this issue via our website, www.awcnet.org, and in future Legislative Bulletins.

Membership adopts Statement of Policy and Resolutions for 2006-07

City officials adopted AWC’s 2006-07 Statement of Policy and Resolutions on Friday, June 23, during our Conference in Spokane. This year the Resolutions Committee focused on revisions to our resolutions. The six resolutions will serve as the basis of our legislative efforts in 2007. AWC’s Legislative Committee will now be appointed and asked to refine these resolutions into specific legislative proposals for Board review and approval in December.

Please see the adopted Statement of Policy and Resolutions at www.awcnet.org/legpolicy. A hard copy will be mailed to each city in late July.

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