Since 2007, the annual inflation rate in the United States has been approximately 2.3 percent. The numbers fluctuate from year to year, but it is a fact of capitalism that prices increase over time.
This is true for government entities as well as households, but local governments in Washington are limited to a 1 percent annual increase in property tax levies that provide a big chunk of their funding. In other words, government funding has not kept up with the costs of labor, gasoline, maintenance equipment and other items, creating a structural deficit.
For some voters, this is a feature and not a bug. But most residents recognize that providing adequate law enforcement, maintaining parks and playgrounds, funding a well-functioning permitting office, and supporting public health are important to the quality of life in our community. So are many other functions that fall under the duties of local government.
Because of that, the Legislature should be quick to support House Bill 1670, which would allow taxing districts to impose up to a 3 percent levy increase in a given year. Such an increase would not be required, but the flexibility would allow municipalities to better adjust to the needs of their communities. The bill has 21 co-sponsors — all Democrats, including Reps. Sharon Wylie and Monica Stonier of Vancouver.
Reasonable complaints can be lodged about the increasing cost of government services in Washington. The 2021 Legislature approved two-year state budgets totaling $122.7 billion in spending — an increase of more than 100 percent from the 2005-07 budgets.
But that should not obfuscate the need to ease restrictions on city governments, county governments, port districts and junior taxing districts. Money raised and spent close to home can more effectively address the needs of residents, but the ability of local governments to provide services has gradually eroded.
That has been evident in Clark County. Over the past decade the county council has frequently rejected the permissible 1 percent levy increase, contributing to a decline in law enforcement. Last year, now-retired Sheriff Chuck Atkins publicly criticized county officials for not adequately supporting his office.
While simple math indicates the problems inherent in a 1 percent property tax levy increase that does not keep up with inflation, cities and counties also are dealing with population increases that demand an increase in services.
That fact also points out an oft-misunderstood aspect of property taxes. The levy is the total amount collected. If the value of property throughout the taxing district — say, the county — has increased through new construction, individual property taxes can actually decrease.
Washington’s 1 percent limitation is the result of legislative action in 2007. Voters had approved the statewide limitation, but the courts ruled that the Tim Eyman-backed measure was unconstitutionally vague. In trying to support the will of the voters, the Legislature passed the 1 percent limitation. Additional “banked” increases also may be adopted.
Indeed, an argument can be made that weakening the limit should be up to the public. But whether by sending it to voters or performing their duty as lawmakers, legislators should work to overturn a provision that has hamstrung municipalities and chipped away at their ability to provide services in their community.
The 1 percent limitation is unsustainable and long has had a negative impact. The Legislature should address it this year.
