| Don’t be fooled by the apparent attempts of our Democrat controlled Senate to raise the property tax homestead exemption to $75,000. While it sounds nice on the surface, it’s largely symbolic and will actually do nothing more than shift more of the tax burden.
The increased homestead exemption applies only to the state portion of the tax, which is less than 25 percent of the total property tax burden. Estimates are that it will save the average homeowner $72 per year. The homestead exemption would result in NO revenue loss to the state as the tax benefit received by some would be completely offset by higher taxes on others.
Who bears the brunt of the tax shift? Primarily business property, including farm, agricultural, and timber land.
This is a classic example of “robbing Peter to pay Paul”. The state has a $1.9 billion surplus. If the state wants to provide tax relief, it can and should do so by lowering the state levy rate — as well as re-enacting Initiative 747 to prevent future property tax hikes.
The Department of Revenue estimates that over a two-year state budget cycle the tax increase to non-residential property would be $243 million. If you think state government is somehow doing right by its citizens, think again!
Buck Frymier
Gig Harbor | 