Drafter
Clerk 04/14/2005
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A MOTION opposing the restoration of taxes on non-farm estates by the Washington state legislature in support of the 2005-2007 biennial budget.
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WHEREAS, the proposed Washington State 2005-2007 biennial budget will tax citizens and business in the amount of twenty-five billion eight hundred million dollars, and
WHEREAS, the proposed Washington state 2005-2007 biennial budget will reinstate a tax on non-farm estates valued at more than two million dollars, and
WHEREAS, in 1981 Washington voters overwhelmingly passed Initiative 402 that limited the estate tax, also called the "death tax," and aligned Washington state law with federal estate tax law, and
WHEREAS, on February 3, 2005, the Washington state Supreme Court invalidated the estate tax in Estate of Wylie M. Hemphill et al vs. State of Washington State Revenue et al, and
WHEREAS, family farms and businesses are the backbone of America's economy, and
WHEREAS, small and large business owners that produce jobs and wages to support the entire community have expressed opposition to the tax, and
WHEREAS, small and large business owners generate tax revenues and are highly regulated, and
WHEREAS, Washington state sales taxes, the business and occupation taxes and the state property taxes account for more than eighty percent of all state general fund revenues, and
WHEREAS, business and occupation taxes are the second largest supporting revenues for the state general fund, accounting for approximately eighteen percent of general fund revenues, and
WHEREAS, business owners pay taxes on their income through business taxes, excise taxes, license fees, social security taxes, income taxes, sales taxes and property taxes, and
WHEREAS, a prosperous economy is vital to the health of Washington state, allowing citizens to strengthen the economy by reinvesting, and
WHEREAS, local and state governments must acknowledge and respond to these critical concerns in a state where jobs are scarce and a fragile economy is experiencing a tenuous recovery, and
WHEREAS, the proposed Washington state legislative package is intended to further increase taxes for small and large businesses through taxation of their heirs;
NOW, THEREFORE, BE IT MOVED by the Council of King County:
The council opposes restoration of the estate tax by the Washington state Legislature in support of the 2005-2007 biennial budget.
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