PORT ANGELES — A public hearing is set for April 5 on a proposed tax increase to aid in addressing affordable housing issues in Clallam County.
“While no one relishes a new tax, in this case, we are considering a one-tenth of 1 percent sales tax,” said Mark Ozias, Clallam County commissioner.
“Our community is looking for solutions to our housing crisis and the reality is those solutions will require resources.”
This proposed tax is allowed by House Bill 1590, passed in 2020. It authorizes cities and counties to impose a one-tenth of 1 percent sales and use tax to be applied to the development of affordable housing as well as the development of mental and behavioral health facilities.
Jefferson County imposed the tax in 2020, as did the City of Port Angeles.
Ozais said that demonstrates the pressing need for solutions.
“The Port Angeles community has already voted in favor of this tax locally, which underscores that this community wants to see results,” Ozias said.
“This sales tax is the primary funding mechanism that the state Legislature has provided for local jurisdictions to use to fund locally appropriate solutions to their affordable housing crisis, and we have heard loud and clear from all parts of the county that housing and affordable housing are our most important issues,” he said.
Once collected, 60 percent of the tax would be earmarked for the construction of affordable housing, construction of mental/ behavioral health facilities, or funding the operations and maintenance costs associated with those developments and facilities.
The other 40 percent would go to the operation, delivery or evaluation of mental and behavioral health services and programs, as well as housing services.
“The tax by itself will only solve a small portion of the problem,” Clallam County Commissioner Randy Johnson said.
“It’s going to take help from a whole lot of other sources working together.”
A Housing Solutions Task Force would come together to look at HB 1406 funding as well as funds from the American Rescue Plan Act and the Opportunity Fund.
“I believe that will make a real difference,” Johnson said.
The county is working on putting together a team that will act as the committee that will choose where these collected tax funds will be allocated as well as help identify other potential affordable housing funding sources.
“The commissioners are recruiting a team of leaders and representatives from the building and real estate industries, local government, business leaders, housing providers and community members to ensure that we are thinking broadly and looking for all possible opportunities and ideas to move the needle with whatever funding sources we can bring to bear,” Ozias said.
County staff has estimated the proposed tax increase would generate up to $1.3 million in revenue for affordable housing.
The ordinance would require the county to work with residents on the development of housing and enter into interlocal agreements with cities that have already imposed the tax.
The legislation says if a county imposes the tax first, cities within the county cannot impose it. But if a city imposes the tax before the county, the county must credit back 0.1 percent to those cities.
In short, if Clallam County adopts this ordinance, the cities of Sequim and Forks cannot impose the tax within their limits and will not be credited like the City of Port Angeles.
If the tax is approved, there also will be requirements for the recipients of the developed affordable housing.
These requirements include that the person’s income is at or below 60 percent of the county’s Area Median Income (AMI); that those persons either have been diagnosed with behavioral, mental or physical disabilities or be persons that are homeless or at risk of homelessness; or qualify as military veterans, senior citizens or survivors of domestic violence.
The public hearing will be at 10:30 a.m. during the regular county commission meeting.
For more on Clallam County commission meetings, see www.clallam.net/bocc/public_meetings.html.
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Reporter Ken Park can be reached at kpark@peninsuladailynews.com.
