Measures 47 & 50
According to ECONorthwest, "Measure 5 cut school operating property taxes from $1.5 billion in 1990 to $800 million by 1995. As Measure 5 approached full phase in 1995, property tax activists feared that rapid property value growth would cause property taxes to quickly rise again. In 1996 voters approved Measure 47 - an initiative that further rolled back property taxes and limited their growth. The measure was poorly crafted and unclear in many respects. Although the measure’s creator said it was not his intent, the language was interpreted to allow local voters to approve exceptions to Measure 47’s limits, but not to Measure 5’s. Thus was born the local option. The voters subsequently approved Measure 50, which replaced Measure 47, retaining the local option in the process. The local option permits local voters to impose a tax in the “gap” between Measure 50 and Measure 5." For information about taxing the "gap" see the section on Local Option Levies.
What did these laws do?
What makes Measure 50 particularly difficult to understand is that it is a hybrid of a levied and rate based taxation systems. A levy system is when a taxing body assesses a value in a given year and this is the amount that is paid. A rate-based system is a system that is an amount per $1 assessed value.
- Instituted a Double-Majority for increasing local taxes outside of a General Election.
- Capped increased in assessed value of property to 3% per year, with specific exceptions
- Retained Measured 5 property tax limitations
- Established initial assessed values of property at 10% less than its assessed value in 1995.
One of thing that these measures did was that it instituted a Double-Majority law (which was changed by voters in 2008). This meant that if a local entity such as a school district wanted to raise local taxes if such a measure was put on a ballot in a non-general election that 50% of registered voters would have to turn out for an election and then 50% of those that voted would have to vote yes. People that didn't want a measure to pass had more power to defeat a measure by not voting at all than by voting an voting no. This meant that many local entities such as cities, counties and school districts would avoid putting tax measures on in non-general elections. This meant only one election every two years was not subject to double-majority. This was changed in 2008 and now May and November elections are not subject to Double-Majority, but any tax local tax measures put on a ballot in a special election are still subject to Double-Majority requirements for passage. Modifying the Double-Majority law to allow two elections a year to not be subject to the law should help local school districts be able to pass local option levies and bond measures.
| 50impact_prop_tax.pdf |
| localoption.pdf |
