Oregon has a vibrant tradition of democracy through our ballot initiative process. We, the people, can put a plan to the test in the public domain with petitions, and if they pass muster, carry them forward to a vote in the general election to decide the direction of our government.
It’s a tradition of people power over special interests steering the ship. Is it perfect? What is in government? But it is one of the best examples in this country of people wielding their say from the ground up.
And it works, in most cases, depending on where you sit.
Currently there is a petition circulating to support a ballot measure to amend the Oregon Constitution to prohibit local governments and the state from establishing a real estate transfer tax, or RETT. It is an initiative backed by the Oregon Association of Realtors, and it’s part of a nationwide campaign by the National Association of Realtors to ban these assessments on the sale of homes and other real estate.
The argument is that homebuyers and sellers can neither afford nor should have to pay a tax, in addition to property taxes, on a transfer of ownership. Currently, Oregon has preemption, a legislative prohibition, on any local entity or the state from imposing such a tax. The proposal by the Realtors would remove any legislative option: It would be banned in the state’s constitution.
This isn’t about to be an argument for or against a transfer tax. To be clear, Street Roots in the past has supported efforts to repeal the preemption with the expressed purpose of applying the revenue toward preserving and creating low income housing and alleviating homelessness.
This is about local control: the authority of counties and cities to levy funds for the benefit of all; the premise behind taxation being that if you invest wisely in the common good, society benefits – socially and economically. The measure of investing wisely has always been governed by representatives, elected by the people. It is why, for years, Multnomah County has called for the repeal of preemptions against local governments raising money. The RETT is one example; the authority to impose a tobacco tax is another.
Oregon’s tax system is a patchwork of voter initiatives and legislative manipulation – both stuck in constant reactionary mode. In our own communities, where people are hurting, there is little leeway to invest. The Realtors association is raising $1 million in Oregon alone from its 14,000 members to put this on the statewide ballot in 2012. This year, more than 22,000 Oregonians were experiencing homelessness in a single one-night count across the state. The number of homeless families with children increased 33 percent from the previous year. We’ve got to find better means to reverse this course — with all options wide open, not slammed shut before we even begin.
Referendum upon referendum has proven a lousy way to create forward-thinking and stable tax policy. Likewise, amending the constitution on the RETT would sever another connection between voters, their representatives, and the local control necessary to take care of our diverse communities.