Not an official copy.

Pullman, WA
Resolution No. R-90-99

A RESOLUTION EXPRESSING OPPOSITION TO INITIATIVE 695 THE TITLE OF WHICH IS "SHALL VOTER APPROVAL BE REQUIRED FOR ANY TAX INCREASE, LICENSE TAB FEES BE $30 PER YEAR FOR MOTOR VEHICLES, AND EXISTING VEHICLES TAXES BE REPEALED?".

WHEREAS, Initiative 695 (I-695) will be on the November 2, 1999 election ballot; and,

WHEREAS, I-695 asks the voter to decide if voter approval would be required for any tax increase, license tab fees be $30 per year for motor vehicles, and existing vehicle taxes be repealed; and,

WHEREAS, I-695 would roll back the Motor Vehicle Excise Tax (MVET) from 2.2% of current value to a flat fee of $30 which would result in the owner of a vehicle valued at $40,000 saving about $850 in taxes while the owner of a vehicle valued at $5,000 would save about $80 in taxes; and,

WHEREAS, as these examples demonstrate, the primary beneficiaries of this roll back in MVET taxes would be those who can afford to purchase more expensive vehicles; and,

WHEREAS, according to figures provided by the state's Office of Financial Management (OFM) the fiscal impact of the passage of I-695 would be a revenue loss of $1.1 billion in the 1999-2001 biennium and up to $1.7 billion in revenues in the 2001-03 biennium; and,

WHEREAS, I-695 would significantly reduce funding for transportation improvements such as through the elimination of the state highway improvements which would have been funded under Referendum 49; and,

WHEREAS, I-695 would significantly reduce funding to counties including the elimination of the County Public Health Account and the County Criminal Justice Assistance Account; and,

WHEREAS, I-695 seriously impacts city revenues and services including the elimination of the Municipal Sales & Use Tax Equalization Account, the Municipal Criminal Justice Assistance Account, and approximately 84% of the funding for the Municipal Research & Services Center; and,

WHEREAS, I-695 would seriously impact state, county, and local governments in their ability to issue bonds for needed public improvements; and,

WHEREAS, according to OFM figures, if I-695 passes the city of Pullman will lose $900,569 in the year 2000 and $1,273,936 in the year 2001 within the General Fund and will also lose $523,000 in the year 2000 and $597,189 in the year 2001 within the Transit Fund; and,

WHEREAS, these revenue losses would have a devastating impact upon the city of Pullman's ability to provide services; and,

WHEREAS, the voters of Pullman would have to approve very high increases in taxes and fees if they wanted to replace this lost revenue locally in order to maintain services at current levels; and,

WHEREAS, one of the provisions of I-695 is that the requirement for voter approval of future tax increases includes a monetary increase in an existing tax; and,

WHEREAS, the intent of this provision is unclear to the point that the language could be interpreted to prohibit governments from collecting more money from any taxes or fees unless the jurisdiction received voter approval; and,

WHEREAS, such an interpretation could prohibit jurisdictions from collecting sales taxes or property taxes above 1999 levels without voter approval if more revenues flowed in from these sources due to a strong economy, new construction, annexations? etc.; and,

WHEREAS, the I-695 requirement that tax increases be voter approved will substantially increase election costs; now, therefore,

BE IT RESOLVED, by the City Council of the city of Pullman that it expresses opposition to Initiative 695.

ADOPTED by the City Council of the city of Pullman at a regular meeting this 14th day of September, 1999.

DATED this 15th day of September, 1999.

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Mayor

ATTEST:

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Finance Director

Approved as to Form:

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City Attorney