After the Washington State Supreme Court ruled against Initiative 747, I was glad the governor accepted our request to call a one-day special session on Nov. 29 to reinstate the measures 1 percent levy limit. It was our opportunity to uphold the will of the people who approved the initiative in 2001.
I voted in favor of the 1 percent reinstatement and was pleased to see it pass. However, I am very concerned with another bill adopted that day under the guise of property tax relief.
Senate Bill 6178 allows homeowners with incomes of less than $57,000 the states median income to defer up to 50 percent of their annual property tax bill. Initially, it sounds like a great idea. But the devil is in the details.
Heres how the program works. The deferral comes with adjustable interest that is the federal rate plus 2 percent (currently 7 percent), which accrues annually. If the federal rate increases, so does the programs interest rate. Homeowners may defer half of their property tax bill, but when the home is sold, all of those taxes are due immediately along with the accrued interest. There may also be an annual $40 fee for those in the program.
Our House analysts investigated the impact to a homeowner. Keep in mind property taxes vary in taxing districts. From a $295,000 home in Covington (near Kent), they conservatively estimated that a homeowner who deferred 50 percent of taxes for 10 years would owe the state more than $31,000 when that home is sold.
Proponents say taxes and interest could be paid from the equity in the home. What if the home doesnt appreciate enough to cover the tax bill? What if you need a home equity loan to make improvements to prepare the house for sale, such as a new roof? This could make it difficult to obtain that loan or even refinance for a better mortgage rate because, under this program, the state puts a lien on the home and takes the lead lien position. That means if your home is sold, the state is the first to get paid even before your mortgage lender.
Many people use equity of their first home for purchase of their next home. However, if the state takes that equity, you may not have enough money to purchase your next home. Even if your home goes into foreclosure, the state can still come after you for the back taxes and interest at predatory rates.
Im very concerned an attractive tax deferral will lure those most vulnerable with financial difficulties into this malicious program. Once theyre in, the state essentially owns their home and they cannot escape the financial burden until the taxes, interest and fees are paid.
True property tax relief is when you pay LESS to the government, not more. Thats the approach we should be taking when the Legislature meets again in January. I encourage you to steer clear of this predatory program, and I welcome your suggestions about real property tax relief for Washingtons citizens.

State Rep. Dan Kristiansen, R-Snohomish, represents the 39th Legislative District. He can be contacted at 360-786-7967 or kristiansen.dan@leg.wa.gov. Visit his Web site at: www.houserepublicans.wa.gov/Kristiansen.