OLYMPIA – Gov. Chris Gregoire said she will work to reinstate a cap on annual property tax increases that disappeared today as a result of a state Supreme Court ruling.
Justices struck down a 2001 initiative limiting property tax increases to 1 percent a year. Until voters approved Initiative 747, counties, cities and school and special districts could seek increases up to 6 percent a year.
“As governor, I am asking the state, counties, cities and all other taxing districts to assure me that they will not increase property tax levies for their upcoming budgets as a result of the court decision,” Gregoire said in a prepared statement.
“In addition, I will be asking the Legislature, in January, to work with me to thoughtfully reinstate a property tax cap,” she said.
In a 5-4 decision, justices ruled Initiative 747 pushed by Tim Eyman of Mukilteo was unconstitutional because its wording misled voters as to the actual effect of the measure.
Today’s ruling affirms a June decision issued by a King County Superior Court judge.
“We’re in for absolute chaos,” Eyman said in a statement e-mailed to supporters this morning.
“For six years, local governments have been held to a 1 percent levy each year. Since I-747 no longer exists, local governments now suddenly have the unused taxing authority that they’ve accumulated over the past six years. That means that each local government now has the power to jack up property taxes 30% this fall without a vote of the people,” he wrote.
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