2007 Legislative Priorities
“Big Picture Budget” Accountability - SB 6054 (Pridemore)/HB 1827 (Santos)
The Legislature approved at least 61 new or extended tax break packages during the last three years alone that will cost the state nearly half a billion in the 2007-2009 biennial budget, according to a report from the Economic Opportunity Institute. There are now over 500 tax exemptions, deductions, credits and other tax preferences on the books in Washington State.
The cost of these tax preferences is not being evaluated side-by-side against other high priority public needs like affordable health care, quality education and transportation in the budget process. The Washington Tax Fairness Coalition called on the Governor and the Legislature to build on their record of improved accountability by passing legislation to require a tax expenditure report as part of the state budget.
With the “big picture budget” before them, policymakers could ask the tough questions about whether the revenue spent on tax preferences might be invested more effectively in other ways to help Washington businesses and residents.
Outcome: If at first you don't succeed, try try again ... The Coalition and five other organizations testified in favor of the bill in House Finance Committee and six pages of organizations signed in supporting the measure. We got good press coverage on the issue and generated lots of grassroots action. The bill did make it as far as the House floor, but was not voted on before the cutoff date. We will be working with legislative leaders to get it passed in 2008 with no "ifs, ands or buts."
Surcharge on Large Oil Corporations’ Excess Profits - HB 2128 (Conway)
In 2006 the largest oil corporations posted record profits: Exxon Mobil alone had quarterly profits that topped $10 billion, which was bad news for publicly funded goods and services. Higher costs for gasoline and heating oil put a serious strain on the annual budgets of schools and colleges, hospitals and nursing homes, public services and local governments.
The Washington Tax Fairness Coalition urged passage of HB 2128 to add an extra 3% Business and Occupations tax on the gross receipts of major businesses that refine or sell petroleum. The surcharge would go into effect when gas prices exceed $1.75 per gallon. The revenue could be used to offset high energy costs or to invest in renewable energy and improved public transportation.
Outcome: Too bad the Legislature doesn't meet in August ... With oil and gas prices (temporarily) lower, legislators' interest in taking on oil corporations dropped too. Feisty sponsor Rep. Steve Conway and the Coalition got the issue out there, got some press coverage, and can try again in 2008. Another summer of gas prices well over $3 a gallon should help us make our case.
The Coalition urged the Legislature to assure that any changes it made to the property tax system provide a sufficient local tax base (which a 1% cap would not) and make the tax fairer for lower-income homeowners.
Outcome: Victory! The Coalition worked tirelessly to head off a vote to codify a a failed Tim Eyman property tax initiative into law -- since it does nothing to make the system fairer but is consistently under-funding vital local services.
We testified, organized 25 organizations to oppose the bill, got press coverage, met with policy makers, and generated hundreds of calls, letters and emails. The Legislature adjourned without voting on a 1% cap bill, which is a significant victory. It buys us time to work on creative alternatives that do make property taxes fairer and provide enough revenue for fire, EMS, libraries, parks and all the other good things that property taxes fund.
419 Occidental Ave. S, Suite 206, Seattle WA 98104 w (206) 625-9790 w www.WATaxFairness.org