By Bryan Corliss
Herald Writer
The Snohomish County Economic Development Council wants to shoot down Initiative 747, saying the limits it would provide on property tax collections would come at the expense of local services essential to an improved business climate.
Economic development is a joint effort of local business and government, said the EDC’s president, Deborah Knutson. "This would cut government’s option for even being a partner at all."
The council is a public-private partnership of Snohomish County business and government leaders.
I-747 is the latest measure developed by Mukilteo small business owner Tim Eyman. It seeks to limit the growth of property taxes by putting a 1 percent cap on the amount of additional taxes collected each year.
Agencies that feel they can’t function without more tax money would be allowed to ask voters for an increase.
The problem with the initiative is that is takes money away from local services such as roads, water and sewer projects, hospitals and schools, Knutson said.
These are services that "help grow companies, help grow the economy," she said.
Those programs already are underfunded, in the eyes of many business leaders, she said. Boeing officials have pinpointed problems with transportation and education as issues that must be addressed if the company is to build its proposed Sonic Cruiser in the Puget Sound area.
And by limiting taxes collected from households, I-747 would further shift the tax burden onto businesses, which already pay almost half of all taxes in that state. It’s one of the highest business tax burdens among the 13 Western states, and a disincentive to companies considering moving here, according to a recent Washington Research Council report that was partly paid for by the EDC.
Knudson said the council decided to take a stand on the issue after hearing presentations from some of the elected officials who belong to the EDC’s board of directors. The board also reviewed a report on I-747’s impacts prepared by the EDC’s in-house policy analyst.
The analyst’s position was created this year as part of the council’s five-year plan to create 4,000 new jobs in the county. The plan is being funded with $5 million raised from local businesses and government.
Eyman was not immediately available for comment Tuesday. But in an opinion piece published in Sunday’s Herald, he described I-747 as "your megaphone to scream in the ear of every politician that you don’t want a tax increase as long as sacred cows are allowed."
The measure would hamper basic services, Knutson said.
"We live in a society that we think should value these things," she said. "We all have to help pay for them."
You can call Herald Writer Bryan Corliss at 425-339-3454
or send e-mail to corliss@heraldnet.com.
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