House Joint Resolution 4223 |
Proposed Constitutional Amendment |
| Official Ballot Title: |
The legislature has proposed a constitutional amendment on increasing an exemption from the personal property tax. This amendment would authorize the legislature to increase the personal property tax exemption for taxable personal property owned by each “head of a family” from three thousand ($3,000) to fifteen thousand ($15,000) dollars. Should this constitutional amendment be: Approved [ ] Rejected [ ] |
| Note: The ballot title and explanatory statement were written by the Attorney General as required by law. The Fiscal Impact Statement was written by the Office of Financial Management. View complete text of House Joint Resolution 4223: PDF |
| Fiscal Impact Statement |
| None Supplied |
| Explanatory Statement |
| The constitutional provision as it presently exists: The state constitution and state statutes provide for a property tax based on the value of property. Property taxes apply to both real property (land, buildings, and permanent fixtures) and personal property (all other property that is not real estate). The amount of the tax is determined based upon the assessed valuation of the property. Certain personal property is exempt from tax, including household goods, furnishings and personal effects used by the owner, and most business merchandise. Personal property subject to property tax consists mainly of office furniture and business equipment, fixtures, and machinery. The state constitution authorizes the legislature to enact an additional statutory exemption for taxable personal property worth up to $3,000 owned by each individual who is a “head of a family” and the legislature has done so. An individual who is a “head of a family,” as defined by statute, and by rule of the Department of Revenue, qualifies for the exemption. A “head of a family” is defined to include a husband or wife, or a surviving spouse not remarried; any person receiving an old age pension under state laws; any citizen of the United States, over the age of sixty-five who has resided in Washington continuously for ten years; and other individuals who reside with and provide care and maintenance for family members, as defined. Corporations, limited liability companies, and partnerships do not qualify for the exemption. When an individual who qualifies as a “head of a family” owns taxable personal property, the individual is entitled to an exemption of up to $3,000. The effect of the proposed amendment, if it is approved: The proposed constitutional amendment would authorize the legislature to increase the maximum personal property tax exemption for taxable personal property owned by each “head of a family” from $3,000 to $15,000. |
| Statement For House Joint Resolution 4223 |
| Small businesses are the heart of Washington’s economy. Yet, the local businesses that provide good jobs for our families and communities often struggle to stay afloat. This proposed constitutional amendment – HJR 4223 – will help local businesses grow and succeed. Currently, businesses must pay a personal property tax on their assets. The first $3,000 of their assets are exempt from the tax. HJR 4223 would raise the exemption allowed under the State Constitution to $15,000. Increasing the exemption will help businesses throughout Washington. Start up businesses, in-home businesses and businesses updating old equipment – such as computers or machinery – will benefit from this change. This amendment will: • Save money for Washington’s employers, enabling them to invest more in their workers and in improving competitiveness; • Enable small businesses to upgrade their technologies without substantially increasing their tax burden; • Reduce paperwork. This reform is long overdue. While the cost of everyday items has increased significantly, this exemption has not been raised since 1988. HJR 4223 was prime-sponsored by State Representative Derek Kilmer, who works with small businesses every day as a manager with the Economic Development Board in Pierce County. The proposal passed unanimously out of the State House and Senate. It received the support of the Association of Washington Business, the National Federation of Independent Business, the Independent Business Association and local businesses throughout our state. As citizens, we have the ability to pass this constitutional amendment and help our small businesses compete. Please vote “yes.” |
| Rebuttal of Statement Against |
| None Supplied |
| Voters Pamphlet Argument Prepared by: |
| DEREK KILMER, State Representative, 26th Legislative District, (prime sponsor); MARK ERICKS, State Representative, 1st Legislative District; DON BRUNELL, President, Association of Washington Business; CAROLYN LOGUE, State Director, National Federation of Independent Business; KLAUS GOLOMBEK, retired banker and Kitsap County business owner; GARY SMITH, Executive Director, Independent Business Association. |
| Statement Against House Joint Resolution 4223 |
| State law requires that the argument and rebuttal statement against a constitutional amendment be written by one or more members of the state Legislature who voted against that proposed measure on final passage or, in the event that no such member of the Legislature consents to prepare the statement, by any other responsible individual or individuals to be appointed by the Speaker of the House of Representatives, the President of the State Senate, and the Secretary of State. No legislator who voted against House Joint Resolution 4223 or other individual opposing the measure consented to write an argument against the measure for publication in this pamphlet. |
| Rebuttal of Statement For |
| None Supplied |
| Voters Pamphlet Argument Prepared by: |
| None Supplied |
| The Office of the Secretary of State is not authorized to edit statements, nor is it responsible for their contents. |
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