Washington is in the middle of a housing crisis and current efforts and policies can’t meet the need. The number of people who are experiencing homelessness remains high and many live on the edge of being evicted or having their homes repossessed. They worry what will happen to them if they can no longer afford to stay in their home.

It’s baffling, then, why Democrats have introduced a bill (Senate Bill 5798) that Senate Republican Leader John Braun says would, “blow the doors off our property taxes.”

Right now, state and local governments can only raise your property taxes by 1% per year without voter approval. SB 5798 would lift that cap and allow them to raise your property taxes at a rate based on inflation and population also without voter approval.

If this policy had been in effect over the last decade, the annual average property tax growth rate state and local governments could have increased your taxes WITHOUT VOTER APPROVAL is 4.7% EACH.

Can you afford state and local governments to each increase your property taxes by 4.7% a year — or more? If you can afford it the first year, what about the next — or the next after that? Worst-case scenario — government greed results in a 9% increase in your property taxes every year and you wouldn’t be able to stop it.

Under Senate Republicans’ $ave Washington budget proposal, state or local governments that wanted to increase property taxes by anything more the current 1% cap would have to convince their voters to agree.

The Republican plan forces government to remain accountable to you.

A Senate Democrat this week introduced Senate Bill 5791, which would raise the business and operations tax from 1.75% to 1.8%. While that may seem like a minor jump in the rate, the Washington State Department of Revenue estimates it amounts to YOU paying another $90 million a year to state government. How?

A tax on business is a tax on consumers. Businesses, especially small businesses, can’t absorb higher costs without passing them on through higher prices. DOR also estimates 20,000 businesses will be affected.

If the goal is to close business, prevent new ones from opening and cause those that survive to lay people off and raise prices, an increase in the B&O tax is the way to go. That’s NOT what we want to for Washington. SB 5791 is a bad idea.

Real-estate excise tax: House Bill 2276 would expand the excise tax on property sales to include more homes AND imposes a NEW excise tax on property transfers. Although it would affect properties worth $3 million or more, multifamily housing like apartment complexes would get hit. It’s expected to cost sellers another $164 million in the first biennium and will result in higher home prices and rental rates to cover higher taxes when the property is sold.

Intangible property tax: Senate Bill 5797 would tax intangible items such as stocks, bonds, patents, trademarks and intellectual property as if they were tangible property such as land. This scheme could cost Washington taxpayers $9 billion over two years and motivate others to leave the state, like Jeff Bezos did.

“The Senate Democrats’ budget does exactly what we expected — it raises taxes and overspends. Their plan adds $12.1 billion in new policy spending despite Washington already facing a multi-billion-dollar budget shortfall. Instead of living within existing revenue, Democrats are pursuing unsustainable spending, leaving the state vulnerable. As the saying goes, ‘If you find yourself in a hole, stop digging.’

“The proposal relies on more than $17 billion in new or higher taxes, including an increase in the amount state and local governments can raise property taxes annually without voter approval. Last year, Democrats wanted to triple the allowable growth rate from 1% to 3%, but didn’t succeed because of such strong opposition. But this proposal eliminates any cap. Property owners could face annual increases of 8% or more — year after year — with no recourse. This could force many homeowners and renters out of their homes.”

Read the full statement

 

“The Senate Democrats claim their budget makes ‘tough choices,’ but the reality is, the tough choices are going to fall on the parents and college kids and families who will lose out because of the majority’s misguided priorities. Our Democrat colleagues want to raise your taxes by $21 billion, yet they would cut support for childcare programs and subsidies, cut financial aid while increasing tuition, and make the Discover Pass and hunting and fishing licenses significantly more expensive. It’s easy to see what the majority values most – just look at all the new spending, and how more than half of the 10 largest line items are about increasing pay and benefits for public servants.

“The $ave Washington approach from Senate Republicans doesn’t need to raise property taxes or put state workers on furlough to balance. There isn’t a single tax increase or a single service cut. It proves we can support our shared priorities, including full funding for K-12 and services for our most vulnerable neighbors, without asking working families to pay more.”