The beat goes on

Greetings
Well, it's been awhile since I've written anything but it's only because I've been pretty busy. However, there has been a lot going on.
First of all, I wrote a guest column for my local paper, the Peninsula Gateway, on the property tax issue. Below is a copy of that article:

( My wife and I have had the pleasure of living in the Gig Harbor area since 1975. Both of our children attended peninsula schools and currently have businesses here. We’re also blessed with six wonderful grandchildren.We built our home ourselves and we love our neighborhood. We have trees that we planted as seedlings that are now sixty feet tall. We have a tree house that our daughter played in when she was four years old, and now our grandchildren play there. This is not just a piece of dirt to us. This is our home. And now, in our supposed “golden years” we and many people we know are now facing the real possibility of being taxed out of our homes. And you could be next.

Our property taxes have gone up 400% in just the last five years. And there is absolutely nothing to prevent the same thing from happening over the next five years. Without a change in our property tax system , I believe that’s it’s only a matter of time until home ownership, long a part of the American dream, will only be available to the wealthiest of families.

Under current Washington law, all real property (with few exceptions) must be taxed at 100% of fair market value.. And to explain the basic unfairness of this system, I use the example of purchasing stock at 10$ per share If that stock rises to $100 per share, there is no tax paid on the $90 profit until the stock is sold. However if a person buys a home for $100,000 and that house rises to $500,000 in value, the property owner must pay tax on the $400,000 profit even though they don’t have that money in their pocket unless they sell their home. We’re being taxed for unrealized gains year after year. And we’re basically penalized for pride in home ownership. This is just wrong and totally unacceptable.

Please don’t think that this will change because of the legislature’s recent reinstatement of the1% cap on levy increases that fund our basic services .

I believe that what we desperately need is a system where we are only taxed on the purchase price of our homes plus a reasonable and predictable increase each year. Then we could actually budget for our property taxes which is impossible under our current system. Now we have the reinstatement of the 1% cap many wanted, but that is a separate issue from rising property assessments. This is what we need to change.

If you believe that paying tax on unrealized profit is unfair, you are not alone. And all the new “tax deferral” program really does is put a lien on your home. And to add to the insanity, you’re charged 7% interest for those deferred taxes. Wonderful. It will take an amendment to our state’s constitution to change our current property tax laws. They cannot be changed by the initiative process. Only our elected state representatives can make the changes we need, so please let them know how you feel.

I feel like now I must fight for my beloved home. And I will not quit until we have a reasonable, just and predictable property tax system in our state. I did not ask for this fight. Believe me, I would much rather spend time with my grandchildren than get involved in tax politics. It can be a nasty business . But I love my land. It’s my share of the American dream, and I will not let it be taxed away.. I have started a blog to provide a journal of these efforts at http://fightingoutofcontroltaxation.blogspot.com. And I will be attending a rally on January 14^th, on the capitol steps at 11:00 to keep this issue in front of our lawmakers. That is the opening day of the 2008 legislative session. It is being organized by Property Owners for Predictable Tax Now. For more information please go to www.predictabletax.com. This is a volunteer group of people who have been working on these issues for two years. We would love to see you there. It’s the American way.)

Writing this article was an interesting process in itself. I would hope that if anyone reads this blog, that they might consider contacting their local newspapers and either writing a letter to the editor or at least talk to the editors and let them know how you feel. It has a lot more impact than you realize.

After writing this article, I received several e-mails and phone calls, and if there was one common thread in my feedback, it's the fact that everyone who responded was either retired or about to be. And every person was truly concerned about losing their homes to our antiquated and bottomless property tax system.

I also recently met with my district's state senator, Derek Kilmer. Although I found Senator Kilmer to be a sincere and likable person, I have mixed feelings at this point . I will talk more about this meeting in my next post after I've had an opportunity to digest my frustrations.

To be cont'd , Pat