The tax on a package of cigarettes would increase from $0.825 to $1.425. 
Washington’s cigarette tax would
become the highest in the nation. An additional surtax of 93.75% on the wholesale price of tobacco products
would be levied. Ninety (90) percent of the funds raised would be used to expand the number of people covered
through the basic health plan, a state program that provides health care coverage to low-income residents who
don’t qualify for Medicaid but can’t afford private insurance. LWVWA has been active in developing and
supporting the Basic Health Plan as a mechanism that increases access to health care. LWVWA has in the past
supported the use of “sin” taxes in support of health care.
The Washington State Tobacco Prevention and Control Program, unveiled on October 10, 2000, is a $15
million aggressive strategy for reducing the disease and premature death caused by tobacco-related illnesses.
Eventually, the program is expected to prevent millions of early deaths, and result in longer, healthier, and more
productive lives for state residents.
According to the American Lung Association, “Every year in Washington State we lose 8,200 lives to diseases
caused by tobacco. That’s more than we lose to illegal drugs, car accidents, guns, fires, murders, suicides,
AIDS, and alcohol …combined. Every single day in our state, 65 kids get hooked on smoking, and at least one-
third of them will die prematurely as a result.”
Smokers cost us money. We spend $1.3 billion every year on preventable, tobacco-related health services.
Taxpayers are also contributing through state and federal taxes to cover Medicaid and Medicare treatment of
tobacco-related health problems.
Research shows that when other states have increased taxes and therefore prices on cigarettes, fewer cigarettes
are purchased.
First, they will have a greater incentive to stop smoking and improve their health. Low-income people without
insurance are the first to be financially devastated by serious health problems such cancer, emphysema etc.
Expanded health coverage and efforts to curb youth smoking far out weigh the increased tax burden.
Current tobacco taxes go partly to funding for the violence reduction and drug enforcement account, the health
services account, or the water quality account. The Initiative was written so as to protect those programs from
the possibility of lost revenue with a reduction in tobacco use.
Initiative Measure No. 747 concerns limiting property tax increases. This measure would require state and local
governments to limit property tax levy increases to 1% per year, unless an increase greater than this limit is
approved by the voters at an election.
Initiative 747 would limit property tax increases to the lower of 1% or the rate of inflation unless voters approve
a greater increase. Property taxes are used by many different jurisdictions including the state, counties, cities,
and special districts.
The League of Women Voters of Washington Program in Action 1999-2001
Action to obtain a balanced tax structure that is fair, adequate, flexible and has
a sound economic effect.
•Specific figures and details such as assessment levels, mileage limit and classification should be left to
legislativedetermination according to the needs of the time.
importance. The state should have a primary role in regulation and enforcement to ensure uniform
assessment levels and adherence to laws and standards of performance.
exemptions granted by the state. Property otherwise exempt should pay for direct public services such as fire
and police protection.
methods other than exemption should be investigated for the purpose of relieving the property tax burden on
low-income families.
Makes our tax structure even more regressive by limiting tax increases. It would place severe limits – 1% - on
the ability of local governments, special taxing authorities, and the state to raise revenue needed to keep pace
with inflation and the growing need for essential services.
I-747 proponents claim that we have the 5thhighest taxes in the country. Looking at property taxes alone is a
better comparison. The latest figures show that Washington ranks either 24th(per $1,000 of income) or 18th(per
capita) in property taxes. In fact, the average resident of Washington pays more in sales tax than in property
tax.
Taxes are necessary. Changes to our state’s tax structure should be fair, adequate, and have a sound economic
effect. Before state tax revisions are approved they should be meet these criteria.
Because the 1% increase allowed does not, in most years, even keep up with inflation, I-747 would gradually
diminish the ability of governments and taxing districts to provide needed services.
Drastically reducing revenue obviously reduces flexibility for governments and makes it impossible to plan
efficiently.
Our uncertain revenue picture in Washington is already producing an unsound economic effect shown by the
very real threats of downgraded bond ratings and difficulty selling state and municipal bonds at competitive
prices. I-747 would only exacerbate this problem. Additionally the serious lack of infrastructure and services,
which would gradually occur after some years of I-747’s very low levy lid, could only harm our already
worsening economic climate. The state's borrowing costs also could be expected to increase.
Existing law requires property to be valued at its true and fair market value. Both the state Constitution and
statutes limit property taxes to 1 percent of property's true and fair market value unless voters approve
additional levies. Existing law limits the amount each taxing district may increase its tax levy to the rate of
inflation or to 106% if specific requirements are met. These existing limits protect property owners from
excessive increases in taxes.
![[made with GoClick]](imgs/goclick.gif)
