End Prison Industrial Complex v. King County

CourtCourt of Appeals of Washington
DecidedSeptember 26, 2017
Docket49453-1
StatusPublished

This text of End Prison Industrial Complex v. King County (End Prison Industrial Complex v. King County) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
End Prison Industrial Complex v. King County, (Wash. Ct. App. 2017).

Opinion

Filed Washington State Court of Appeals Division Two

September 26, 2017

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II END PRISON INDUSTRIAL COMPLEX, No. 49453-1-II

Appellant,

v.

KING COUNTY, PUBLISHED OPINION

Respondent.

JOHANSON, J. — End Prison Industrial Complex (EPIC) sued King County to challenge

the County’s calculation of property tax increases under Proposition 1 (Prop. 1), a local ballot

measure that authorized a property tax levy at a rate above the limit established in ch. 84.55 RCW.

EPIC claimed that although the language of the Prop. 1 ballot title authorized an increased tax rate

in the first year of the levy, the ballot title’s language did not expressly state, as required in RCW

84.55.050,1 that the increased base tax amount in the first year could be used to calculate future

years’ increases. In addition, EPIC claimed that the ballot title did not expressly and clearly state,

as required in RCW 84.55.050, that the tax proceeds could be used to construct a juvenile detention

facility.

1 The legislature amended RCW 84.55.050 in 2017. LAWS OF 2017, ch. 296, § 2. We cite to the version of the statute in effect when EPIC sued King County, former RCW 84.55.050 (2009), throughout this opinion. No. 49453-1-II

The superior court granted the County’s summary judgment motion and dismissed EPIC’s

claims, ruling that (1) EPIC’s claims were untimely, (2) the ballot title language was sufficient

under RCW 84.55.050 to authorize the County to levy property taxes in future years based on the

increased base tax amount in the first year, and (3) the ballot title language was sufficient to limit

the use of the tax proceeds to purposes including the construction of a juvenile detention facility.

EPIC appeals all three rulings.

We hold that EPIC’s challenge to the County’s calculation of subsequent levy amounts was

timely. We also hold that Prop. 1’s ballot title did not expressly authorize the County to levy

property taxes based on the increased base tax amount in the first year of the levy. Thus, we

reverse the order granting summary judgment on this point. However, we further hold that the

ballot title authorized use of those funds for a limited purpose that included the construction of a

juvenile detention facility. Thus, we affirm the superior court on this point. Accordingly, we

reverse in part and affirm in part the superior court’s order granting the County’s summary

judgment motion. We remand for further proceedings.

FACTS

I. REAL PROPERTY TAX LEVIES

Central to this case is the system by which taxing districts calculate and impose real

property taxes under ch. 84.55 RCW, which limits the rate at which a taxing district may increase

the regular property tax levy amount. See Wash. Citizens Action of Wash. v. State, 162 Wn.2d

142, 145, 171 P.3d 486 (2007). RCW 84.55.010, the “levy lid” statute, imposes an amount that

each year’s regular property taxes may not exceed, calculated using the following formula:

[T]he limit factor multiplied by the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes

2 No. 49453-1-II

were levied for such district plus an additional dollar amount calculated by multiplying the regular property tax levy rate of that district for the preceding year by the increase in assessed value in that district.

The limit factor, which is defined by RCW 84.55.005(2), is 101 percent.2

RCW 84.55.050 allows a taxing district to exceed the levy lid under certain circumstances.

This “levy lid lift” statute authorizes a taxing district to submit to voters a proposition that will lift

the levy lid. RCW 84.55.050(1). The dollar amount of such a levy lid lift may not be used as the

base amount for computing “subsequent levies” unless the proposition “expressly” states that the

levy will be used for this purpose. RCW 84.55.050(3); see also RCW 84.55.050(4)(a). “Except

as otherwise expressly stated in an approved ballot measure,” subsequent levies are calculated as

if the levy lid lift proposition “had not been approved.” RCW 84.55.050(5)(a).

Under RCW 84.55.050(4)(c), the purpose for which levy lid lift funds are used also may

be limited. But the proposition must “clearly” and “expressly” state that this condition will apply.

RCW 84.55.050(1), (4)(c).

II. BACKGROUND

In 2012, voters approved Prop. 1. Prop. 1 implemented Ordinance 17304 and had the stated

purpose of “concerning a replacement facility for juvenile justice and family law services.”

Clerk’s Papers (CP) at 367. Prop. 1 authorized “an additional property tax for nine years to fund

capital costs to replace the Children and Family Justice Center.” CP at 367.

2 RCW 84.55.005(2) sets the limit factor for most districts as either 101 percent, RCW 84.55.005(2)(a), or the lesser of 101 percent or 100 percent plus inflation, RCW 84.55.005(2)(c). For our purposes, it can be assumed that the limit factor is 101 percent.

3 No. 49453-1-II

In April 2016, EPIC, a nonprofit corporation, sued the County and alleged that the County

had over-collected property taxes under Prop. 1 beginning in 2014 and that Prop. 1’s ballot title

concealed from voters that Prop. 1 would be used to fund a “new youth jail.” CP at 3. EPIC sought

declaratory and injunctive relief to bar the County from levying additional excessive property taxes

and spending Prop. 1 funds on a “new youth jail” and to force the County to refund excessive

property taxes that had already been collected. CP at 16.

III. SUMMARY JUDGMENT MOTIONS

A. COUNTY’S REQUEST FOR SUMMARY JUDGMENT

1. COUNTY’S SUMMARY JUDGMENT MOTION

In July 2016, the County moved for summary judgment.

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