Is Washington's Tax Initiative 184
like California's Proposition 13?

Take a look in the following areas.
WHAT ABOUT:

How are voter approved levies such as School and Hospital bonds treated?

I-184 makes no change in the existing state laws.

Prop-13 reaffirmed that two thirds of the voters are needed to approve such levies.

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How would it impact the state levy?

I-184 Makes no change in the existing law, a simple majority of the Legislature in both houses can increase or decrease the state schools levy rate.

Prop-13 After passage State property taxes can only be increased by two thirds vote of the Legislature rather than by a simple majority as required before the passage of Prop 13.

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How would it change the Constitutional tax limit?

With I-184 no change in the existing constitutional limit on regular (non voted) levy of $10 per every $1,000 of assessed value.

Prop-13 Reduced regular levy from the equivalent of $27 per every $1,000 assessed value to $10 per every $1,000, this represents a 63% reduction in their tax limit.

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What is the base year for fixing assessed value?

I-184 Establishes 1995 assessed value as a base value for all existing real property both residential & commercial.

Prop-13 Passed in 1978, established March 1, 1975 assessed value as a base for property acquired before March 1, 1975.

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What about a tax roll back?

I-184 No roll back (your 1996 tax bill is based on 1995 assessed value).

Prop-13 Rolled taxes back 3 years.

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How about new construction?

I-184 Establishes 1995 as a base year for cost basis in compliance with uniformity clause of Washington State Constitution.

Prop-13 Valued it in the year of construction.

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How about the resale of property?

I-184 Would use 1995 assessed value as a base value in compliance with the uniformity clause of the Washington State Constitution.

Prop-13 Fair market value (THE COST) to the buyer in the year acquired.

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What about uniformity or the lack of it?

I-184 Identical properties with the same market values will have the identical assessed value (that is, same taxes) in full compliance with the uniformity clause of the Washington State Constitution.

Prop-13 For property sold or constructed after March 1, 1975, assessed value set at market or appraised value at the time of sale or construction. Created non-unifomity in the tax bill for identical properties with same market values.

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How predictable are taxes, or will they lack that factor?

I-184 Very predictable for all times for regular (non-voted) taxes on all uniform or identical properties.

Prop-13 Predictable only for property acquired before March 1, 1975.

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How do you adjustment assessed value for inflation?

I-184 Would allow assessed value to increase by a maximum of 2% or decrease to reflect decline in value.

Prop-13 The base value to increase by a maximum of 2% as long as same tax payer continued to own the property.

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What is the net effect?

I-184 Merely slows the growth, no cut in taxes, it would retain existing laws regarding voter approved and state levies.

Prop-13 Not only slowed the growth but cut the taxes by 63% and made it harder to raise state Property taxes.

ACTS
Anonymous Citizens for Tax Sanity
409 Q St.
Port Townsend WA 98368
Phone: 360-385-0786
E-Mail to dwren@olympus.net

Last Modified 11/20/97