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Washington Policy Center: Tax Exemptions Referendum

By Josh Feit April 14, 2011

The conservative Washington Policy Center blog reports that state Sen. Ed Murray (D-43, Capitol Hill), chair of the senate ways and means committee, has introduced a bill that would allow the legislature to repeal tax exemptions with a simple majority vote. Currently, the legislature's interpretation of the law is that repealing tax exemptions is tantamount to raising revenue, and therefore requires a two-thirds majority vote under Tim Eyman's Initiative 1053. The bill would send the change to a vote of the people.

Democrats have argued that tax exemptions are actually budget expenditures, and so should have to be reconsidered—like every budget spend when the biennial budget is hashed out and voted on every two years—as a budget amendment, which requires only a simple majority.

Sen. Murray has 10 cosponsors on the bill (all Democrats), including Seattle Sens. Jeanne Kohl-Welles, Sharon Nelson, and Scott White.

WPC writes:
This means that if SB 5944 was adopted by the Legislature and ratified by the voters, lawmakers would be able to make changes to any of the 567 tax preferences totaling $98.5 billion in savings for taxpayers with a simple majority vote. Among those tax preferences that could be changed without a 2/3 vote:

  • property tax exemption for churches

  • property tax exemption for personal intangible property

  • B&O exemption for non-profit nursing homes

  • sales tax exemption for feed and seed

  • sales tax exemption for personal and professional services

  • sales tax exemption for food


Though lawmakers may promise never to touch these tax exemptions, the fact remains that under SB 5944, any of the 500 plus tax exemptions currently in law would be subject to change or repeal with a simple majority vote. Changing them would no longer be considered tax increases under state law.
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