One Percent Initiative Gathers Steam Political, Economic Climate Lets Support Flourish For Ron Rankin’s Tax-Cut Plan

In 1992, Realtor Don “Pepper” Smock thought little about property taxes and even less about tax activist Ron Rankin.

He listened as Rankin pleaded the case for a 1 percent property tax cap. Like most voters that year - almost two-thirds, in fact - Smock wasn’t interested.

“In 1992, Ron Rankin was a voice in the wilderness,” Smock said. “A lot of people sat on the sidelines and said ‘He might be right, but I don’t see that big of a problem.’ I gave him no support - morally or financially.”

Much has changed in four years.

Smock’s own taxes climbed and he heard the mantra - “property taxes are too high” - from friends, co-workers and clients.

This year, calling himself a convert, he gave $250 to Rankin’s campaign for a One Percent Initiative.

“The issue has completely outgrown Rankin,” he said. “You no longer have to be a Rankin disciple to join the brigade.”

Voters, politicians, political watchers and tax experts from around the state agree: Once seen as a reactionary’s pipe dream, Rankin’s perennial push for a tax cap now is viewed as credible - even feared.

Rankin and his supporters attribute the change to growth in government spending and a lackluster stab at property tax reform by Gov. Phil Batt and the Republican Legislature swept into office in 1994.

Opponents and even some supporters attribute the change to Rankin’s unorthodox political efforts. He admits having run for several offices primarily to trumpet his cause, and he’s a pitbull in the face of resistance.

“I think people find integrity in a crusade where a guy fights alone in the trenches for five, six and seven years and never gives up,” Smock said.

Regardless, his efforts could turn government funding on its ear. Yet at this point, no one can say for sure what it would do to homeowners’ wallets.

“If Rankin’s initiative passed, it would be one of the most important public policy decisions made in Idaho in the last few decades,” said Jim Weatherby, Boise State University political scientist.

When he filed to put his initiative on the ballot last week, Rankin used the limelight to blast Idaho’s GOP majority. He pointed to a tenet of the “Contract With Idaho,” which claimed the party would remove “maintenance and operations” from local school property taxes.

“They’ve broken their word,” he said. “We’ve got them in a box.”

In 1995, Batt and the Legislature removed $42 million - about 25 percent - of the controversial levy as part of a property tax cut. Batt also capped most spending increases by cities, counties, and other taxing districts at 3 percent a year.

It was a first step in a long march, critics said, but the walking quickly stopped. The Legislature this year vetoed a measure to finish making the shift.

“I think the governor feels he did what he could,” said Batt spokeswoman Amy Kleiner. “That’s what he promised he would do in the campaign.”

Kleiner acknowledged it has not been enough to silence the howl of property tax critics.

“The animosity toward property taxes is long-held in Idaho and that resentment is growing,” she said.

So far, Batt’s office has been the loudest - perhaps the only - vocal critic of the initiative. Some say that has fueled Rankin’s momentum.

After Rankin’s first proposal was defeated in 1992, the Idaho Education Association spent thousands of dollars to convince voters not to sign future petitions. In 1994, Rankin could not drum up the necessary signatures to get a place on the ballot.

“The other side just isn’t out there this time,” said Randy Nelson, president of Associated Taxpayers of Idaho. “I think many of them are saying ‘Ah, we’re tired of this.’ Rankin’s not tired.”

Jim Shackleford, executive director of IEA, said this year’s initiative is so “dramatically different” some former opponents aren’t sure how, or if, to fight it.

Rankin eliminated the easy criticisms - that it would lead to cuts in police or in homeowners’ exemptions - and the last fight was expensive for IEA.

Still, “I have no doubt someone will jump into the debate soon,” Shackleford said. IEA is expected to stake out a position next week.

It’s not that the initiative isn’t open to criticism.

For example, Nelson said, because a homeowner’s tax bill is made up of taxes for several governing bodies, someone would have to decide how the tax pie is divided so the total stays below 1 percent.

“Who gets to play God with the money?” Nelson asked. “I haven’t heard an answer.”

Other critics point out that big businesses - such as Coeur d’Alene developer Duane Hagadone’s tourism empire - would save thousands of dollars that likely would be made up by increased income and sales taxes paid by working people.

And Weatherby pointed out that property taxes are the most stable of taxes. Removing schools could leave education dollars tottering unpredictably from year to year.

Still, as property assessments rise again this spring, and some homeowners’ taxes rise with them next fall, the One Percent could earn more followers.

“I know my land is worth more than it was 10 years ago, but my house is not for sale,” Smock said. “People don’t want to be penalized year after year like that.”

And anecdotes like those lead directly to Rankin.

Rankin, who’s 67th birthday is April 19 - Patriot’s Day - sees this as the culmination of his work in retirement. He’s running for Kootenai County commissioner - “this time to win” - and heads into summer with the confidence of a prophet whose forecasts finally are being realized.

“There will be no other year like this one for Ron Rankin,” Smock said.

, DataTimes MEMO: This sidebar appeared with the story: Proposition 1 Tax activist Ron Rankin has gathered the required 41,000 signatures to place his One Percent Initiative on November’s ballot as Proposition 1. Though similar to a defeated 1992 measure, this proposal was changed by Rankin in response to earlier criticisms. The initiative would: Cap property taxes at 1 percent of assessed value after exemptions and prohibit increases for property taxed below 1 percent. Limit local government budget increases to the cost-of-living index used to calculate Social Security benefits. Fund all public education from the state’s general fund instead of local property taxes, but maintain policy-making control of local school boards. Prohibit any reduction in police, fire or emergency services and not allow cuts in tax exemptions in response to the initiative. Allow cities and counties to impose additional taxes only after two-thirds of voters approve.