PORT ANGELES — It’s just a cup of coffee.
That’s how longtime Clallam County Commissioner Mike Chapman has justified his support for nominal tax increases in his 15 years in office.
Chapman on Tuesday defended the county’s recently adopted 0.2 percent sales tax holiday and apologized for contributing to the tax burden of a struggling community.
“I deeply apologize to this community for adding to this burden, and I hope that in some way, there’s a measure of forgiveness today to reduce that burden,” Chapman said in a public hearing.
“I will continue to fight to reduce the burden going forward until such time as the average wage in this community is a living wage and the economy is really growing and expanding.”
Chapman joined fellow Commissioners Jim McEntire and Bill Peach in passing an ordinance that will lower the sales tax rate from 8.4 percent to 8.2 percent in unincorporated areas effective July 1.
The ordinance was a legal formality, as commissioners voted April 14 to reduce the tax rate until further notice by resolution to the state Department of Revenue.
Clallam County is believed to be the first in the state to reduce its optional sales tax rate, Revenue officials told County Administrator Jim Jones.
Two of three public speakers who addressed the tax break spoke against it in a 90-minute meeting Tuesday.
A common argument has been the tax holiday would do little good. A $100 purchase in unincorporated Clallam County will cost 20 cents less on July 1 than it will June 30.
Cup of coffee
“It’s interesting that on the way up, when taxes are increased, those are the same arguments that are made: that it’s just a little bit of money, it’s a cup of coffee year over a year,” Chapman said.
“So government, traditionally, over a long period of time takes that annual cup-of-coffee increase and eventually, I think the pain is inflicted. I think it is a cumulative effect.”
Chapman has announced that he will not seek re-election in 2016.
He said the low-income majority in Clallam County has reached a “breaking point.”
“If I, in some symbolic measure, can at least reduce a measure of burden, I’m willing to do it,” Chapman said.
“One of the burdens that I’ve carried over the years is that I have made, from this dais, the comment that it’s just a cup of coffee when looking at a 1 percent property tax increase, when looking at various sales tax increases.
“And I, for one, take full responsibility that I have lent to the pressure this community feels and the burdens that people carry every day trying to make house payments, tax payments, utility payments.”
Chapman voted against the 1 percent property tax increase for the first time in his career last December.
The new-look board has decided this year to spend down excess revenue in ways that help the economy and the poor.
“I don’t think the sales tax is enough,” Chapman said.
“I would roll back property taxes, and I would eliminate the real estate excise tax. I think a three-pronged tax cut would actually make an improvement on the economy.”
Three-pronged tax cut
Chapman said he would pitch the three-pronged tax cut in the 2016 budget process to help support those who are raising children on $25,000 salaries.
“We’re the 1 percent of Clallam County, those of us who make $70,000-plus a year,” Chapman said.
“There are a lot of people who would dream, households who would dream, to make $70,000 in combined income. So I think this is a first step. I don’t think it’s the last. I’ll spend my next 18 months fighting for more reductions, more cutbacks to help those people who are on the lower income level.”
Commissioners said they would revisit the sales tax rate in the future.
“Everything that we can do to get behind our economy and push it as fast and as hard as we can — be that whatever it is — is to the benefit to our community,” McEntire said.
“This is just one of those things.”
Peach predicted that the tax reduction would help the economy, noting a conversation he had had with a couple considering a move to Port Angeles.
“The fact that we have lowered our sales tax was something that they were quite interested in,” Peach said.
“They saw that as a gesture that we are interested in bringing businesses to Clallam County.”
McEntire and Peach are first-term Republicans. Chapman is a former Republican who is no longer party-affiliated.
‘Scratch out a living’
“In 18 months, I actually look forward to joining my fellow citizens in the rolls of the unemployed in Clallam County and trying to scratch out a living,” Chapman said.
“That may seem weird. That may seem bizarre to a lot of people, but it is something that I have to do to come back to the common man in this community and walk side by side with them.
“So this is my role in saying I feel your pain. This isn’t a Bill Clinton moment. This is genuine.”
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rollikainen@peninsuladailynews.com.
