Washington “Payment In Lieu of Taxes” Statute Struck Down by State Trial Court

Here is “Tossed out: Superior Court deems tribal tax-break bill unconstitutional.”

And State Superior Court Strikes Down HB 1287, and PILTs as “Taxes”

Here is the court’s order in City of Snoqualmie v. King County Executive (King County Super.):

Order

An excerpt:

3. The payment labeled “payment in lieu of tax” (“PILT”) in Section 8 of Engrossed Substitute House Bill (“ESHB”) 1287 is a property tax under Washington Law;

4. The PILT is subject to uniformity requirements in Article VII of the Washington Constitution;

5. The PILT violates the uniformity requirements in Article VII of the Washington Constitution because it is not imposed at an equal tax rate and does not produce equality in valuing the property taxed; and

6. Section 8 of ESHB 1287 violates Article VII Section 1’s command that “the power of taxation shall never be surrendered, suspended or contracted away.

Background materials here.