Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 22, 1997
Contact:  Governor's Communications Office, 360-902-4136

Locke vetoes property-tax measure saying it short-changes homeowners

OLYMPIA - Gov. Gary Locke today followed through on his promise to veto a property tax measure approved by the state Legislature, reiterating his concern it did not provide a sufficient level of relief for homeowners.


Locke sent the Legislature his own proposal to continue last year's 4.7 percent reduction in state property tax rates for one year, but rejected the Legislature's call to extend that rate indefinitely. Instead, he will work for a comprehensive package of tax relief for homeowners and businesses and called on lawmakers to join him in fashioning a bipartisan solution.


"My action will prevent an increase in state property tax rates while we work together for meaningful and sustainable tax relief ," Locke said. "We have a limited amount of money for tax relief and we must set priorities."


In his veto message, Locke noted that House Bill 1037 would provide $159 million in tax exemptions through June 30, 1999, but that only 58 percent of those savings would go to owners of single-family homes. The other 42 percent ($66.8 million) would benefit businesses and other owners of commercial property.


Locke said he is prepared to follow through on his commitment to roll back business and occupation (B&O) taxes to pre-1993 levels. But when it comes to property-tax relief, Locke said individual homeowners should be the primary beneficiaries.


"As I've said before, we can't spend the state's surplus five times over," Locke said. "Our state's financial outlook is very promising and I think we can provide a significant amount of relief to homeowners and businesses alike. There are a lot of good ideas in the Legislature right now, and I don't feel compelled to sign the first one that hits my desk."


More than a dozen property tax measures have been introduced since the Legislature convened last Monday. Locke said he favors an approach, similar to that proposed by House and Senate Democrats, which would provide a tax credit to individual homeowners for a certain portion of their home's assessed value.


"I'm prepared to work with legislative leaders to develop the best tax-relief package possible," Locke said. "We need to judge every public policy by whether it helps or hurts Washington's working families."


As he weighs various tax-relief options, Locke has also directed state agencies to identify potential reductions of 5 percent from the base spending levels used to develop Gov. Mike Lowry's budget proposal to the state Legislature. Unlike Lowry, Locke said he will propose a 1997-99 budget plan that holds General Fund-State expenditures within the spending limit established by Initiative 601.


"This reduction exercise is designed to provide us with some flexibility to address the needs of public education and other key priorities with the limits set by Initiative 601," Locke said Tuesday in issuing his directive to state agencies. "To do that, we need to examine options for reducing costs in other areas."

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