This is equivalent to about a 25 cent increase per gallon of gasoline. I-732 alleviates its effects on the poor in two ways: it lowers Washington’s regressive sales tax by one percent, and provides a match of up to $1500 of the federal Earned Income Tax Credit for low-income working families. Jock A. Finlayson, head of policy at the Business Council of British Columbia, stated, "We were not very happy when it was first announced... [Now,] within the business community there is a sizable constituency saying this is O.K." …, It is precisely because a revenue-neutral carbon tax isn't weighed down by so many ancillary social goals that it stands the best chance of appealing to people across the political spectrum.[8]. [28], The No on 732 campaign coalition included:[30]. Therefore, two tax credits, costing about $421 million, would be distributed around June 30, 2018. Sponsors of the measure hired Your Choice Petitions, LLC to collect signatures for the petition to qualify this measure for the ballot. if(document.getElementsByClassName("reference").length==0) if(document.getElementById('Footnotes')!==null) document.getElementById('Footnotes').parentNode.style.display = 'none'; Communications: Kristen Vonasek • Kayla Harris • Megan Brown • Mary Dunne • Sarah Groat • Heidi Jung I-732 makes polluters pay. Inslee took these steps to enforce caps on greenhouse gas emissions after other proposals stalled in the Washington State Senate, which was controlled by Republicans at the time. A Department of Revenue analysis found I-732 will cut funding available for education, health care, and other vital services by $797 million over the next six years. It is an absolute tragedy." [28], As of January 12, 2017, the following were the top five donors in opposition to this initiative:[28]. Superior Courts | Initiative 732 would lower the state’s regressive sales tax and increase tax credits to low-income working families. Healthcare | [10], Top Contributors: Peter Kelly, Menno van Wyk, David Thacher, Howard Behar, and Kate Pflaumer, Yoram Bauman, an environmental advocate with a Ph.D in economics, was the founder of Carbon Washington. Washington would have been the first state to place a tax on carbon emissions. Ballot measure laws | Ireland and Sweden also have such taxes. The Washington Carbon Emission Tax and Sales Tax Reduction, also known as Initiative 732, was on the November 8, 2016, ballot in Washington as an Initiative to the Legislature, a kind of indirect initiated state statute in Washington. While a carbon tax makes emissions caps and subsidies redundant, it can also complement them by nudging consumers in the same direction. Finally, the measure would expand and fund a working family tax exemption. Initiative 732 in Washington was a landmark attempt to address climate change and was expected to raise $2 billion annually through higher prices for gasoline and fossil fuel-fired electricity. According to the New York Times, "British Columbia’s economy did not collapse. Nonetheless, the institute deferred to the OFM. This Washington State initiative, on the ballot this fall, will tax emissions from burning fossil fuels, decrease the sales tax, eliminate business taxes on manufacturers, and fund a Working Families Tax Rebate. No, [I-732] is not perfect. Cost of signature collection: Elections calendar | Calculations show that unchecked greenhouse gas emissions put us on course for a climate far outside human experience. [69], Initiative 732 was modeled after British Columbia's carbon tax. ... No on 732 Sponsored by the Association of Washington Business, American Fuel & Petrochemical Manufacturers, Energy policy is a major issue in Washington. Initiative 732 is a Simple Tax Swap I-732 will add a $25 per ton tax to polluting fossil fuels. Prior to the election, polls indicated that support for the measure was around 42 percent and opposition around 37 percent, leaving 21 percent undecided. The tax would have been phased in more slowly for farmers and nonprofit transportation providers… Local measures | It is time to recognize that we are getting rather close to that brick wall. About 68 percent would be identified by 2018 and 86 percent by 2020. Global temperature in 2015 was the highest on record and is likely to be exceeded this year. [8], Some environmental organizations chose to "not support" Initiative 732, rather than opposing the measure. Washington's output will grow due to population growth. Initiative 732 would cause cause household electricity costs to increase. Vulnerable families in communities near pollution hot spots and workers in energy intensive industries are hardest hit by pollution. It was defeated. If I-732 were to pass, it would put at risk the State’s ability to fund basic human services, to meet a court-ordered mandate to fund basic education, and to fulfill other functions of government. Initiative Measure No. He said, “The Sierra Club calls itself a grass-roots organization, and I was really disappointed on how this process was decided. These results are automatically generated from Google. About 30 percent were undecided on the measure. I-732 would define "year" as "the twelve-month period commencing January 1st and ending December 31st ..." Existing code that is part of the initiative states that a "tax year" is "either the calendar year, or the taxpayer's fiscal year when permission is obtained from the department of revenue to use a fiscal year in lieu of the calendar year." The rest of Canada reduced per capita emissions 3.7 percent during the same period. Revenue from this source would be about $81 million per year. [78], There were five petitions filed, and signatures were submitted for one (Initiative Measure No. I-732 changes that. CMQ/OE, President, Impact BioEnergy, Howard Behar, former President of Starbucks North America, Yoram Bernet, Co-Founder and CEO, Scope 5, Jesse Berst, Chairman, Smart Cities Council, Julie Blazek, AIA, LEED AP, Partner, HKP Architects, Patrick Callahan, CEO, Urban Renaissance Group LLC, Tad Everhart, Owner, Tad Everhart Energy Advisor LLC and President, CertiPHIers Cooperative, Burt Hamner, Founder & President, HydroBee, Eric Hull, Co-Founder & General Manager, Banner Power Solutions, Guy Knoblich, Co-Founder & General Manager, Banner Power Solutions, Srirup Kumar, President & Co-founder, Community Supported Biocycling, Bill Lemon, investment banker and adjunct professor of finance at Pinchot University, Evan Leonard, Vice President, Artisan Electric, Carla Reich, Owner, Honey Crumb Cake Studio, Jigar Shah, Co-Founder and President of Generate Capital, Inc., Founder and former CEO of SunEdison, Edward W. Sheets, President of Ed Sheets Consulting, Rahul Shendure, Co-founder and CEO, Oscilla Power, Michael J. Smith Jr., Business Development Advisor at Impact Bioenergy, Deborah Todd, CSBA, LEEDap, Owner, Building Design Services. I am a 20-year climate activist. They are wrong on the politics and wrong on the substance. [72], Alberta, another Canadian province, implemented a carbon tax in 2017. All new model year 2010 and subsequent model year cars, light trucks, and medium-duty vehicles in the state were required to have a label from the manufacturer detailing that the vehicle meets greenhouse gas emissions standards. The commercial and industrial sectors in Washington emit 18 percent less carbon than they did 26 years ago – despite a 260 percent growth in the state economy over that same period. It can raise much-needed resources for clean energy research and development and transit; it can help us invest in communities that will be the hardest hit by climate impacts. | To the extent that the people who modeled it predicted this, I’m not sure that those of us on the policy end of it really believed it." Initiative 732 would phase in the new tax at $25 a ton to start, reaching that price at the end of its first two years in 2018. In other words, softening the blow for the poor and middle class is not enough. We have a moral obligation to leave our kids a healthier, cleaner Washington! Initiative 732 would place an initial $25 fee per metric ton on carbon dioxide emissions. Most manufacturing businesses are taxed at a rate of 0.484 percent of their gross income, but some manufacturers pay lower rates. Revenue from this source would be $40.5 million per year. It would not apply to electricity produced using hydroelectric dams, nuclear power, wind, or solar power. Largest counties | Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. [79], The legislature did not act on the initiative, which meant that, for Initiatives to the Legislature in Washington, the measure made the ballot for November 8, 2016.[80]. As scientists and citizens we urge you to join us in support of 1-732 on Election Day. [56], As of January 12, 2017, the opposition campaign for Initiative 732 featured two ballot question committees, Association of Washington Business and Northwest Pulp and Paper Association, that received a total of $1,418,005.71 in contributions. Taking this into account would reduce the OFM's estimate of a $421 million cost in 2018 to a $157.7 million cost. If certified, initiatives are sent to the Washington House of Representatives and Washington State Senate for consideration. Public pensions | Source: Election results from The Associated Press. But the measure was also opposed by several progressive advocacy groups and even environmental groups.In the end, the measure received only 42 percent of the vote. These groups, as represented by Front & Centered, are strongly opposed to this particular ballot measure. Voting in Washington | Dallas Burtraw. Northwest Pulp & Paper Association No on I 732 Campaign, Laws governing the initiative process in Washington, United States congressional delegations from Washington, Florida Property Tax Exemptions for Renewable Energy Equipment, Amendment 4, Florida Solar Energy Subsidies and Personal Solar Use, Amendment 1, Nevada Legislature to Minimize Regulations on the Energy Market and Eliminate Legal Energy Monopolies, Question 3, Washington Modifying Tax Exemption Criteria for Alternative Fuel Vehicles, Advisory Vote 15, http://www.solarinstallersofwa.org/siw-news/solar-installers-of-washington-supports-initiative-732, State and local government budgets, spending and finance, Petition drive deadlines and requirements, Changes in 2016 to laws governing the initiative process, https://ballotpedia.org/wiki/index.php?title=Washington_Carbon_Emission_Tax_and_Sales_Tax_Reduction,_Initiative_732_(2016)&oldid=7515826, Washington 2016 ballot measures, certified, Initiated statute certified for the 2016 ballot, Tracking election [39][40][41][42][43], Erika Shriner, who terminated her Sierra Club membership in response, argued the group was putting "politics ahead of addressing climate change. A new carbon emission tax would start July 1, 2017. Ballot access for parties | Together, these states accounted for 0.32 percent of the nation's carbon dioxide emissions, 0.54 percent of the nation's sulfur dioxide emissions, and 0.55 percent of the nation's nitrogen dioxide emissions from power plants in 2012. In Washington State in 2015, two different initiative campaigns are gathering signatures for initiatives to the legislature in 2016. Supreme Court | 732). [8], Ansel Herz, Sydney Brownstone, Ana Sofia Knauf, and Heidi Groover, four Election Control Board members of paper The Stranger, criticized Initiative 732, despite the paper's publisher endorsing of the initiative. [These arguments are] essentially that climate change is not a big enough issue to stand alone — that it has to cure other social problems… So if somebody, Joe Schmoe, came up with this incredible program that would take a bite out of climate change, you mean to tell me that the Sierra Club — an environmental organization — would not support it because it failed to go through this one step?… It just doesn’t compute. School districts in Washington | Supporters present represented groups including Carbon Washington (the organization behind the initiative), Carbon Thurston, the League of Women Voters of Washington, Olympia for Confronting the Climate Crisis, and Unitarian Universalist Voices for Justice.. Those present to voice criticism of I-732 represented organizations including Ash Grove Cement Company, Association of Washington … [8], The following video advertisements were produced by Carbon Washington:[26], No on 732 led the campaign in opposition to Initiative 732. Washington-chapter committee member Kyle Murphy, who is also co-director of the Initiative 732 campaign, resigned his committee post over the disagreement. The opposition campaign had spent $1,388,097.38. It was no surprise that the fossil fuel industry worked hard to defeat Initiative 732 (I-732). Their approach would be worse than what is on Washington’s ballot. The rate would increase in 5 percent increments every two years after that until July 1, 2055, when it would be the same as the carbon emission tax rate imposed on other fuels. This measure was designed to impose a carbon emission tax on certain fossil fuels and fossil-fuel-generated electricity, reduce the sales tax by one percentage point, increase a low-income exemption, and reduce certain manufacturing taxes. The government must divert the revenue according to the wishes of specific interest groups. Today's emissions will still be affecting the climate in a thousand years. Washington has shown how to lead the way in reducing carbon emissions. And it returns the money polluters pay to everyone’s pocket by lowering other taxes. This results from implementing a new carbon tax, reducing the state retail sales tax rate by 1 percentage point and reducing certain manufacturing business and occupation taxes. While many interrelated social and environmental needs demand our attention, complex problems are best solved one step at a time. The carbon tax would be applied to exported power. Marc Lee, Senior Economist for the Canadian Centre for Policy Alternatives, said, "... don't believe the hype on B.C. The duo said:[32], I-732 is not revenue neutral and dangerously pits climate activism against funding for education and basic human services. Energy prices would rise, but the measure would induce investments in clean energy, giving Washington a head start in technology competition. These communities will need investments and jobs to make an equitable transition to a forward-thinking clean-energy economy. Operations: Meghann Olshefski • Lauren Dixon • Kelly Rindfleisch • Sara Antel • Sara Horton, Washington elections in 2021 | Voters rejected Initiative 732 — Create Carbon Emission Tax — in Washington on Tuesday. Undecided voters composed 28 percent of the sample. Ballotpedia features 319,543 encyclopedic articles written and curated by our professional staff of editors, writers, and researchers. Rather than being revenue neutral, I-732 is revenue negative. (1,760 of 2,000 precincts). The people of Washington state have the opportunity this November to vote on a state-wide carbon tax. The following is an excerpt from the statement:[39], For these very important reasons Climate Solutions cannot support I 732. Audubon Washington believes Initiative 732 provides swift and effective action to reduce carbon pollution. The letter was as follows:[18]. [63][64], In July 2015, Governor Jay Inslee (D) directed the state's Department of Ecology to consider a mandatory cap on greenhouse gas emissions in the state in order to achieve the legislature's goals passed in 2008. He argued:[20]. The activists want micromanagement. [3] Implemented in 2008, British Columbia's carbon tax helped the province reduce its per capita greenhouse gas emissions 12.9 between 2008 to 2013, according to the Carbon Tax Center. Carbon Washington, the campaign supporting Initiative 732, outraised opponents two-to-one. Justin Trudeau, Prime Minister of Canada, announced his party's support for requiring provinces to establish carbon taxes.[73]. The initiative’s approach is based on a carbon tax that British Columbia put in place in 2008. Washington families and kids deserve a safe environment with clean air and water and healthy forests. It contributed $450,000 in cash donations. Some took the position to neither endorse or fight the measure. Note from Alan: As I explained previously, Washington’s Initiative 732 has divided climate hawks so deeply that even writing about it is a task we undertake with trepidation. The four argued:[35]. Burning fossil fuels (such as coal, oil, and natural gas) produces carbon dioxide, which can trap heat in the Earth's atmosphere. The measure, called Initiative 732, isn’t just any carbon tax, either. 2,855,638 votes, 88% reporting (1,760 of 2,000 precincts) Voters rejected Initiative 732 — Create Carbon Emission Tax — in Washington on Tuesday. The state would adopt rules needed to implement the measure. I-732 would cut sales and business taxes commensurate with a tax on carbon pollution in a revenue-neutral approach to attacking the single largest cause of climate warming. The top donor to the "No" campaign was Kaiser Aluminum. District Courts | In 2016, a group of climate activists put an initiative for a revenue-neutral carbon tax on the November ballot in Washington State. The initiative contains an increase in the Working Families Tax Exemption for low-income communities and a cut to the regressive sales tax, but environmental justice communities have already rejected that idea as insufficient. This measure would create a new tax and reduce certain existing taxes. State executives | Given the urgency of the climate crisis, this was not a decision reached lightly. [67][68], In 2007, under then-Governor Christine Gregoire (D), Washington joined the Western Climate Initiative (WCI), originally a group of seven states and four Canadian provinces (as of 2016, California was the only U.S. state that remained in the WCI). But I-732’s “Working Families Tax Exemption” provides less than half of this population with any relief from increased energy costs. [8], Greg Ip, Chief Economics Commentator for The Wall Street Journal, claimed that Initiative 732 had a greater chance of achieving broad-based support relative to some other global warming regulations and that opponents were not acknowledging this. [2][3] In 2011, Washington ranked 28th in carbon emissions nationwide. We feel strongly that we had to do this. The initiative would raise taxes by about 15 cents per gallon of gas initially, up to 25 cents per gallon, then gradually increasing after that. Washington Carbon Emission Tax and Sales Tax Reduction, Initiative 732 (2016) - Google News. That would eventually give Washington one of the highest prices on carbon in … Once certified, an initiative to the Legislature is submitted to the Legislature at its next regular session, at which time the Legislature must take one of three actions: adopt the initiative as proposed, in which case it becomes law without a vote of the Olson was disappointed with the group's response, saying, "They essentially told me that they had been over and over this issue in many meetings, and they were not about to change." The institute deferred to the OFM's model. Eastern Washington resident Robin Priddy tells Think Progress why she supports the measure. The current state sales tax rate is 6.5 percent, though some local governments impose their own sales taxes that make the rate paid by purchasers higher. Initiative 732 would incentive clean-energy technology competition and accelerate the transition to renewable energy by putting a tax on fossil fuels. I-732 ignores this. Some liberal environmental organizations still see climate change as just another political football, a hypocritical attitude we cannot afford. Immigration | Then, the tax rate would rise to $25 per metric ton on July 1, 2018. 732 concerns taxes. The tax would be collected by the first person or company in Washington who sells or burns the coal, oil, or other fossil fuel. Protects Working Families. I-732 puts a price on carbon pollution from fossil fuels like coal and oil, but not on clean energy like solar and wind. Environmentalists were divided on Initiative 732. The summary section of the fiscal impact statement was as follows:[5], During the first six fiscal years, state General Fund revenue would decrease by a net amount of $797.2 million. [6] To meet this goal of remaining "revenue neutral," Initiative 732 would have lowered the state sales tax from 6.5 to 5.5 percent, increased the Working Families Tax Credit for low-income families, and reduced the business and occupation tax rate from 0.484 to 0.001 percent. What's on my ballot? The carbon emission tax would apply to electricity producers, but only on the proportion of electricity produced using fossil fuels. In 2005, Washington adopted California's greenhouse gas vehicle standards for passenger vehiclesPassenger vehicles are cars that carry a limited number of passengers (usually no more than nine)., light trucksLight trucks are pickup trucks, some sport utility vehicles, or minivans of up to 8,500 pounds used primarily for the transportation of people and cargo., and medium-duty passenger vehicles. Initiative 732 Initiative 732 was filed in 2015 as an initiative to the Legislature. Federal courts | For a summary of in-kind donations, click here. Supporters claimed 40 percent of respondents, while opponents claimed 32 percent. It only refers to “electricity consumed” within the state. I-732 fails this test. Initiative 732 would increase taxes on carbon-based energy while cutting sales and business taxes to provide an incentive to reduce Washington’s carbon emissions without raising the general tax burden. The chart below shows cash donations and expenditures current as of January 12, 2017. Carbon Washington, sponsor of Initiative 732, claimed the measure would be “revenue-neutral” or a “tax swap,” meaning sources of old revenue are swapped for sources of new revenue. Little has been done to preserve a viable climate system. disputes, lawsuits, and recounts, Submit a photo, survey, video, conversation, or bio. Under this system, emissions would be capped at a certain level, and states would be able to "trade" the unused portion of their emissions allowance to other states. The law also mandated that Washington's Department of Ecology require greenhouse gas emissions information for specific large facilities and fuel suppliers if they release at least 10,000 metric tons of greenhouse gases each year in the state. Campaign finance requirements | Washington is already starting to reduce carbon emissions. The measure called for taxing the sale or use of certain fossil fuels and electricity generated from fossil fuels. California's will fall due to policies. The state's northern neighbor, British Columbia, implemented a carbon tax in 2008, and this served as a base model for Initiative 732. State Senate | Voters in the state of Washington will vote November 8 on Initiative 732, which would impose a “carbon tax” on greenhouse gas (GHG) emissions, and thus on … It accelerates clean energy, creating good, local jobs, while driving down the burning of fossil fuels and the pollution, asthma, and smog they cause. The "impact a carbon tax would have on consumer prices is unknown; therefore, any resulting revenue impact is indeterminate." Whether I-732 succeeds or fails, we hope that we can all work together to make sure that we unite behind ambitious and equitable carbon pricing as soon as possible. 88% reporting I-732 funds the Working Families Tax Rebate (WFTR), providing up to $1,500 a year to 460,000 low-income working families. The Sightline Institute labeled the measure "very close to revenue neutral," contending it would have decreased revenue $78 million or 0.37 percent per year.[7]. [5], While Initiative 732 was intended to be a “revenue-neutral tax swap,” meaning new revenue from the carbon tax would decrease old sources of revenue like the sales tax, Carbon Washington, the Office of Financial Management (OFM), and the Sightline Institute offered differing conclusions. Than Oregon 's and somewhat higher than Oregon retail sales of most articles of personal property, digital,... 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