Proposition 1 is not a good “ BET”

By Bob Forde

Posted 10/11/05

Clallam Citizens for Food Security, a small special interest group has brought the idea of taxing us who purchase property, so that development rights can be bought for "agricultural conservation areas."  The proponents of the new tax would have us believe that our money will be used to "save farmland".  However, the actual language of Proposition 1 - Buyer's Excise Tax ( BET) - leaves all the power to decide exactly how our money will be used by the county commissioners - a total blank check!  And it's no small sum of money either - estimated at more than $27 million over 10 years. There's nothing in writing to assure us voters  that "agricultural conservation areas" will be limited to "farmland" - land used to grow crops because "you gotta eat", as the tax proponents tout.

Just what are "agricultural conservation areas?" According to the state law under which the commissioners are proposing this new tax, it's defined as: "land and water that has environmental, agricultural, aesthetic, cultural, scientific, historic, scenic, or low-intensity recreational value for existing and future generations, and includes, but is not limited to, open spaces, wetlands, marshes, aquifer recharge areas, shoreline areas, natural areas, and other lands and waters that are important to preserve flora and fauna."  Essentially, just about everything. 

Then, when the state law requirements were pointed out to the commissioners that a "plan" be made available to voters at least 60 days prior to the election (and so far, no such "plan" has been furnished), they put together a packet of "ancient" resolutions and RCWs, and say "that's the plan", and that the intent of the law was met.  Excuse me??  Nice try, but this is not a plan, detailing how our money is going to be spent!

The proposed buyer's excise tax does not bode well for us here in Clallam County.  It is an unfair tax, the proceeds of which will subsidize a special interest. The most affected will be our children and grandchildren trying to buy their own American Dream, and our elderly on a fixed income who are downsizing in order to make ends meet. 

Clallam County voters have overwhelmingly voted down previous attempts at various costly programs to buy up property or take it out of private ownership or control.  Over the years, there have been many programs put into place to help owners of agricultural land, including reduced taxing rates and assistance from the conservation district.

Look at the statistics.  Washington State ranks 43 rd in the nation in home ownership.  Washington State ranks 3rd nationally in highest excise taxes. 

Clallam County has less than 11% of the land remaining in private property ownership.  All the rest is owned and/or controlled by various governmental agencies, including federal, state, county and local.

According to a recent study by the local realtors, approximately 75% of those buying homes are local people.

There are many reasons that the cost of housing is going up.  Ask any builder (many of which are individuals - small businessmen), and they'll tell you that numerous government regulations -  resulting in county permits, inspections and fees - play a role, as does the limited supply of land.  (There's a natural law of "supply and demand" - the less there is of a commodity, the higher the price, as we've seen with the rising cost of gas.)  As more property is taken out of production for homes, property taxes will
necessarily increase as the property values drastically increase due to lack of supply. Affordable housing, already almost a thing of the past, will be essentially gone (unless we subsidize that, too).

And contrary to what the proponents say, the BET is NOT a "one time fee".  The excise tax is charged every time a property is sold.  If one property is sold each year for five years, as an example, the excise tax would be charged five times on that property.  Of course, the "buyer's" excise tax would be in addition to the "seller's" excise tax, which was recently increased by the county commissioners to 1.78%!

In 2001, Clallam Commissioner Steve Tharinger (D), despite public outcry, convinced the Board to transfer $250,000 from the capital funds account, and created a Conservation Futures Fund to "save farmland".  Matched with federal funds, it took until 2004 to spend the $500,000-plus to buy development rights (conservation easement) on one 44-acre dairy farm, which was transferred to the nonprofit North Olympic Land Trust. The next year, this same farm went out of business - hardly a successful pilot project.  

Farming has to pay.  Jefferson County third generation dairyman Roger Short recently sold his herd when bureaucracy and red tape shot down his idea of a local cheese factory.  When two more local dairy farms shut down, the price of moving milk increased in Clallam County.  Like Roger Short said, "you can't stay in business long when you're losing $100,000 a year."

Quoting R. W. Robinson who was raised on a farm in Sequim, from his guest comment in the Capital Press: "There are two kinds of industries.  Some can pass through their increased costs; construction comes to mind - agriculture cannot.  If prices get high, you
will be replaced by imports, whether you have open space or not."  Niche markets, like the ones that produce locally marketed organic produce, are limited - as is lavender. It would seem suspicious that these "farmers" are the ones pushing this tax on the rest of us, when they are the ones who will benefit most.

If farming doesn't pay, farms turn to weeds.  And when property is taken out of production forever (in perpetuity), it can never be used for another purpose. And your taxes will be used to maintain those lands (as long as the funds last.) - then what, another tax?

"Saving farmland" sounds good, but there are other ways to accomplish this goal than taxing one small segment of the population to profit another small segment.  There are already many regulations to protect open space, including zoning and reduced taxes for agricultural land.   This is an ill-conceived and poorly reasoned tax proposition.  For the reasons stated above, it's obvious that the only logical vote is "no" on Proposition 1.

 

Bob Forde is a local businessman who resides in Clallam County and raises goats . He serves as an elected supervisor on the Clallam Conservation District.