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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Converts Join Latest Tax Crusade Former Foes Join Ron Rankin’s Push For Reform

Ron Rankin’s perennial push for property tax reform is drawing support from former opponents.

Never mind that the measure missed its mark in Rankin’s last two tries. New converts to Rankin’s cause say their support is a sign of frustration. They’re tired of waiting for state law-makers to enact meaningful tax reform.

About 100 supporters raised nearly $24,000 recently for Rankin’s Idaho State Property Owners Association, according to the latest financial disclosure statements. The association wants to place a property tax-reduction initiative on the November 1996 ballot. The money would pay for a professional signature campaign.

The initiative would, among other things, cap property taxes at one percent of valuation.

Contributors to the initiative drive include longtime fans, new Democrat and Republican supporters, and former foes willing to make a long-shot bet on reform.

One such former opponent is Coeur d’Alene Realtor Jack Beebe, of Beebe McKernan and McCarty, who helped battle for the initiative’s defeat in 1992. He recently gave $250 to Rankin’s group.

Fed up with rising property taxes, taxpayers have repeatedly rejected bonds to build or fix up public schools, Beebe pointed out. Lawmakers must be reminded that taxpayers are in the middle of a growing revolt.

If that revolutionary tide isn’t stemmed, Beebe said, institutions will suffer.

“I was against it (the initiative) because it was such a severe approach,” Beebe said. “I still don’t think it’s the answer, but the Legislature needs to get the message.”

Other contributors to Rankin’s initiative are acting out of frustration, as well.

“The mood in North Idaho has certainly changed,” said Silver Valley mining baron Harry Magnuson, who gave $2,500 toward the initiative. “We have come to the conclusion that this is the only way to control taxes.”

Support for the Rankin brand of tax reform has faltered ever since a similar tax cap law was repealed more than 15 years ago.

In 1978, voters overwhelmingly passed an initiative capping taxes at one percent of assessed property value. Through the years, lawmakers slowly eroded it until, in early 1992, the Legislature lifted the last remnant of the measure - a 5 percent cap on most local budgets.

Since then, the property owners association has pushed to cap property taxes at 1 percent of value after exemptions. Specifically, the measure calls for transferring public school funding from local property taxes to the state’s general fund. It also would cap taxing district budget increases at the cost of living index used to calculate Social Security benefits.

“I just think it’s a futile effort, and rightfully so,” said Bob Riddle, a Hayden Lake Democrat who has worked on several Democratic campaigns. “It takes money to run government.”

But Rankin followers say they’re not throwing their money away. This could be their year, they said.

Supporters include County Republican Party Chairwoman Kathy Sims, who gave $500; Super 1 Foods owner Ron McIntire, who gave $1,000 and Donald Smock, who gave $100.

Spokane businessman Duane Alton gave $1,000; developer Dennis Swartout gave $500; and Donald Dupont of Coeur d’Alene gave $50.

Rankin said his group raised $6,000 alone in small contributions from some of the hundreds of homeowners who appealed their property assessments this summer.

“They trusted the system to provide the relief that all the politicians said they would get,” Rankin said of his supporters.

“They thought that government would take care of it, but there’s nothing on the horizon, no relief in sight.”

This year, the state capped taxing district spending increases at 3 percent plus money generated by new growth.

Most Kootenai County officials kept their budget increases far below that cap.

But limiting increases is not enough, Rankin supporters said.

Rocky Watson, a former sheriff elected as a Democrat, said escalating land values are crushing elderly homeowners at tax time. Holding the line on taxes does not help them.

Watson gave $300 toward Rankin’s cause. He said the state needs to look at more user fees and option taxes rather than property tax.

“It’s not fair,” he said.

“The Legislature promised to address the problem, but I don’t see it happening.”

Beebe said the 3 percent cap was a step in the right direction, but “people are not stepping up to the plate.”

“We need to make taxes more broad-based, not just on the backs of property owners,” he said. “The taxpayers aren’t happy. So we have to do something.”

, DataTimes