Not an official copy.
PULLMAN, WA
RESOLUTION NO. R-74-00
A RESOLUTION EXPRESSING OPPOSITION TO INITIATIVE 722 THE TITLE OF WHICH IS (SHALL CERTAIN 1999 TAX AND FEE INCREASES BE NULLIFIED, VEHICLES EXEMPTED FROM PROPERTY TAXES, AND PROPERTY TAX INCREASES (EXCEPT NEW CONSTRUCTION) LIMITED TO 2% ANNUALLY?)
WHEREAS, Initiative 722 (I-722) will be on the November 7, 2000, election ballot; and,
WHEREAS, I-722 asks the voters to decide if certain 1999 tax and fee increases should be nullified, vehicles exempted from property taxes, and property tax increases (except new construction) limited to 2% annually; and,
WHEREAS, I-722 would repeal all (tax) increases adopted from July 2, 1999, through December 31, 1999; and,
WHEREAS, I-722 would require that all such (tax) increases be refunded; and,
WHEREAS, (tax) within the definition of I-722 is defined broadly to include a wide variety of taxes and fees including sales and use taxes, property taxes, license fees, permit fees, utility charges, and other monetary charges; and,
WHEREAS, I-722 would exempt from payment all annual individual property tax increases since 1999 greater than 2% or inflation, whichever is less (except for new construction); and,
WHEREAS, I-722 reduces the current 106% limit on property tax increases to 102%; and,
WHEREAS, I-722 repeals the levy capacity protection statute whereby a taxing district may increase its levy beyond the applicable limit factor, so long as the increase does not exceed the amount that would have been allowed had the taxing district increased its levy in the amount permitted each year; and,
WHEREAS, according to the Washington State Department of Revenue, Section 1 of I-722 which provides that (taxes) enacted between July 2 and December 31, 1999, must be refunded would have a dollar impact on cities of $15.1 million for property taxes and $45.5 million for other taxes, fees, and charges; and,
WHEREAS, according to the Washington State Department of Revenue, Sections 3-7 of I-722 relating to property tax limitations would have a dollar impact on local regular property tax districts of approximately $340.4 million in the 2001-2003 Biennium and $605.6 million in the 2003-2005 Biennium; and,
WHEREAS, the City of Pullman estimates that the provisions of I-722 will have an impact of well over $300,000 on the General Fund in 2001 if the Criminal Justice sales tax is repealed and the new property tax restrictions are implemented; and,
WHEREAS, the City of Pullman General Fund has already been impacted significantly by the passage of Initiative 695 (I-695) last year and cannot afford any additional revenue losses; and,
WHEREAS, at the September 2000 meeting of the Association of Washington Cities (AWC) Board of Directors, the Board took a formal position in opposition to Initiative 722; now, therefore,
BE IT RESOLVED, by the City Council of the City of Pullman that it expresses opposition to Initiative 722.
ADOPTED by the City Council of the City of Pullman at a regular meeting this 10th day of October, 2000.
DATED this __________ day of ___________ 2000.
______________________________
Mayor
ATTEST:
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Finance Director

