Left to right: Marilyn Watkins, John Burbank, and Bill Gates Sr. sign Initiative 1098
It was deja vu all over again yesterday as supporters of Initiative 1098 heard a pep talk from Bill Gates, Sr. and picked up the very first petitions for the campaign — just like the Initiative 1077 kickoff that took place almost exactly one month ago. So what’s the difference between the two measures? And why was I-1077 refiled as I-1098?
In virtually every respect, the two measures are the same. If approved by voters, I-1098 will:
- Exempt every small business in Washington from the B&O tax with a $4,800 business tax credit;
- Reduce the state portion of the property tax by 20 percent;
- Create a modest income tax on income over $400,000 per year (for couples) or $200,000 per year (for individuals); and
- Invest the net revenue — estimated at over $1 billion per year — in education and health care.
The difference between the two measures is simply this: I-1098 adds language that ensures domestic partners are treated the same as married couples when it comes to filing a single or joint return for the new state income tax. And since adding language to a ballot measure effectively makes it a new initiative, Washington State requires the initiative to be refiled and assigned a new number by the state attorney general’s office.
Looking for more information about Initiative 1098? Visit the Economic Opportunity Institute website.
Filed under: tax and budget, budget, health, health care, I-1098, property tax, public policy, school, tax reform
Thanks for the explanation. I’d been wondering. As a low-income renter though, I’d rather have sales tax relief. Landlords will never cut our rents; they’ll just pocket the savings.
How much of the property tax cut landlords choose to pass on to tenants will vary depending on economic circumstance — that is, how soft the rental market is. At the moment, there is a lot of excess property available for rent, and rental rates are in decline. (See this article in Bloomberg, for example.) It seems quite possible — even likely — that landlords would be willing to pass on some or all of the tax cut in order to entice people to rent. That, after all, is the purpose of owning rental property.