PORT ANGELES — Stuff costs less now in unincorporated Clallam County than it did two days ago.
But unless you’re buying a car, you might not notice the difference.
A sales tax holiday that took effect Wednesday reduced the county’s sales tax rate from 8.4 percent to 8.2 percent for most goods and services.
The sales tax for vehicles was lowered from 8.7 percent to 8.5 percent under an open-ended tax break that the three commissioners approved in April.
Commissioners hope to extend the tax holiday through 2016 but have not officially determined when it will sunset.
A 0.2-percent tax reduction means a $100 purchase in unincorporated areas costs 20 cents less now than it did Tuesday.
The buyer of a $50,000 car will keep an extra $100 in would-be taxes.
Commissioners approved the measure to try to spur the local economy and to help struggling citizens.
“It’s a little help to family budgets,” Commissioner Jim McEntire said.
“Sales tax relief goes directly to consumer spending, mostly.”
State Department of Revenue officials have said Clallam is the first county to reduce its 0.5 percent optional sales tax.
The lower tax rate is supported with excess revenue in the county’s general fund.
“It’s headed in the right direction,” McEntire said.
“I’m going to see how long we can keep this going.”
McEntire and Commissioner Bill Peach were recognized by the Republican Party of Clallam County in a Wednesday ceremony declaring the day as Tax Reduction Day.
Commissioner Mike Chapman said he hoped the lower tax rate would boost automobile sales and perhaps encourage people to relocate to Clallam County.
Wilder Auto Center General Manager Dan Wilder Jr. was not immediately available for comment Wednesday.
A Price Ford Lincoln spokesman declined to comment on the tax holiday.
Chapman, who has announced that he would not seek another term in next year’s election, said he would not vote to raise the sales tax back to where it was.
“I will not be voting to raise any taxes in my last 18 months,” Chapman said.
Jefferson County’s sales tax rate is 9.0 percent, according to the state Department of Revenue.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rollikainen@peninsuladailynews.com.
