Washington Constitution Article VII - Revenue and Taxation
Washington Constitution – Article VII: Revenue and Taxation
Overview:
Article VII of the Washington State Constitution governs the state's revenue generation and taxation policies. It outlines the principles for taxation, public debt, property assessments, and how tax revenues may be used.
Key Sections and Summary of Article VII:
Section 1 – Taxation
All taxes must be uniform upon the same class of property within the territorial limits of the authority levying the tax. Property shall be assessed for taxation at 100% of its true and fair value in money.
Section 1(a) – Personal Exemption
The legislature may grant property tax exemptions for senior citizens, persons retired due to disability, and veterans meeting certain income and residency qualifications.
Section 2 – Exemptions
The legislature may exempt property used for schools, churches, burial grounds, nonprofit organizations, etc., from taxation.
Section 3 – Uniformity and Equality
Taxes must be uniform on the same class of subjects and levied by general laws.
Section 4 – State Debt for War Purposes
The state may incur debt to repel invasion or suppress insurrection, without a constitutional limit.
Section 5 – Special Assessments
Permits local governments to impose special assessments for improvements (e.g., sidewalks, lighting), which benefit specific properties.
Section 6 – Limitations on Local Debt
Sets limits on the amount of debt that counties, cities, or towns can incur.
Section 9 – Budget Stabilization Account (Rainy Day Fund)
A portion of general state revenue is set aside annually for economic emergencies.
Section 10 – Homestead Exemption
Allows the legislature to provide exemptions to protect certain home values from taxation.
Section 11 – Initiative or Referendum Powers
The people may use the initiative or referendum process to alter tax laws.
Important Concepts:
Uniformity in taxation is a core principle—ensuring fairness.
Property tax exemptions are allowed for certain groups.
Special assessments and debt limitations give local governments flexibility but with oversight.
Budget stabilization reflects fiscal prudence for downturns.
RELATED Blog
0 comments