Lawmaker Seeks Emergency Session On Tax Cut Spokane’s Jim West Wants To Make Tax Cut Permanent

A Republican lawmaker seeking higher office asked legislative leaders Tuesday to call an emergency session so they can make permanent this year’s one-time-only property-tax cut.

Sen. Jim West of Spokane said the proposal to extend the modest cut beyond ‘96 has nothing to do with his campaign for lieutenant governor - it’s about providing relief for frustrated taxpayers.

“The state has an adequate reserve fund, employment is up and there’s no reason to delay giving property owners some of their money back,” West told reporters at a news conference outside the state treasury.

But property owners had better not spend any of that money just yet.

There are a number of potential road-blocks, including a skeptical lame-duck governor, Democrats who believe West is looking for political bonus points and the unpredictability of election-year politics.

Last year, the Legislature approved a 4.7 percent cut in the state’s portion of the property-tax levy, applying to 1996 tax bills only. It amounts to savings of less than $20 for property valued at $100,000 and was expected to cost the state $54.4 million in lost revenues.

This year, lawmakers tried to cut property taxes even more.

Counties delayed mailing out tax bills while they waited to see if the Legislature could act in time, but early efforts failed. Negotiations between the Republican-led House and the Democratic-led Senate eventually collapsed on the last night of the 60-day session, which ended in March.

In April, Gov. Mike Lowry announced he was considering calling a special session so lawmakers could finish work on a state construction budget and approve appointments to two commissions. But Democratic leaders balked, saying there was no true emergency.

Now, West says there is an emergency - a different one.

The expiration of the 1996 property-tax cut means the tax rate will return to its normal level next year, which West characterized as tantamount to a 5 percent tax increase.

Washington has more than $400 million in reserves and is enjoying a stable economy, West said - a contention he expects to be bolstered today by release of the state’s quarterly revenue forecast.

Lowry has been loathe to approve any tax cuts that would dip into state reserves, but he might be persuaded to make a deal if Democrats and Republicans can agree to a brief special session with a limited agenda. GOP lawmakers have threatened to revisit a number of issues that Lowry vetoed if he calls a special session.

“Unless they reach an agreement on the agenda, it probably won’t happen,” Lowry spokesman Martin Mungia said.

Lowry is not likely to call a special session, but lawmakers could call themselves back - a difficult procedure that requires approval from two-thirds of the members.

Sen. Brad Owen, a Shelton Democrat who also is a candidate for lieutenant governor, said he could support a special session on tax relief only if the Legislature and the governor agree ahead of time on a specific plan.