PORT ANGELES — A sunset could be on the horizon for Clallam County’s sales tax holiday.
Two commissioners Monday said they would support restoring the sales tax rate to 8.4 percent effective April 1 for items purchased in unincorporated areas.
All three commissioners agreed to invite other elected officials and department heads to weigh in on a proposal to end a 0.2-percent tax break that took effect last July.
Commissioners Mike Chapman, Bill Peach and former Commissioner Jim McEntire agreed last April to lower the tax to 8.2 percent in an effort to spur the local economy.
“I think in our hearts we thought we were doing the right thing at the time,” Chapman said in the board work session Monday.
“But what we didn’t do is we didn’t go to our leadership team and we didn’t get their advice, and I would even go so far that on a big decision like this, there should have been advice and consent.”
Chapman proposed an extended work session for 1 p.m. Monday for elected officials, department heads and key deputies to discuss with the board the sales tax rate and other big-ticket items.
“None of us are above anybody else,” Chapman told county officials.
“I ask, please help us figure this out as we move forward.”
Chapman and newly sworn-in Commissioner Mark Ozias said they would support returning the sales tax rate to 8.4 percent.
Peach said he was “firmly opposed” to the idea.
Ozias, who defeated McEntire in last year’s election and took office last Tuesday, said he was “concerned about the sustainability” of the county budget.
“I think it makes good sense to do this sooner rather than later as one step,” Ozias said.
County Administrator Jim Jones said the sales tax holiday represents a loss of about $100,000 in monthly revenue. Clallam County budgeted to receive $4.6 million in sales tax revenue this year.
For consumers, the tax break means a $100 purchase costs 20 cents less now than it did seven months ago.
“I personally am willing to continue to talk about this, but this isn’t the panacea,” said Chapman, noting that the county will spend about $3 million in general fund reserves this year.
Commissioners are scheduled to vote next Tuesday on a resolution notifying the state Department of Revenue of their intent to restore the optional sales tax effective April 1.
Because Revenue requires 75 days notice for counties to change their tax rates every quarter, commissioners must vote next week or wait to make the change effective July 1.
“It would be real easy for Mark and I to just put the sales tax back on,” Chapman said.
“Bill, you vote no and we just go our merry ways. But I think this is an opportunity, gentlemen, to bring our leadership team to the table and to ask what their opinion is and to ask what other ideas do you have.”
Peach and Ozais agreed.
“I support it very much,” Peach said of Chapman’s proposal.
“And I like the idea of drawing on people that know a lot more than any one of us, or any of us collectively, but there will be a point when we need to take a position, and I still accept that responsibility in making an informed decision.”
Peach suggested that the board monitor the county budget every quarter to ensure that decisions are having their desired effect.
Ozias said he was “absolutely supportive” of a broader discussion with county leaders.
“As I’ve been starting to get to know all of the amazing people around the county, I think that we need to be doing everything we can to take advantage of that institutional knowledge and their professional skill and expertise,” Ozias said.
“Why wouldn’t we? That’s a great idea.”
Among the topics scheduled to be discussed Monday were the sales tax holiday, a proposal to conduct an independent review of the county administrator’s position and whether the board should re-establish a departmental liaison system.
Chapman pitched the discussion “out of a respect for elected officials, out of respect to the leadership team and just to make sure that we’re all operating off the same numbers.”
“If the numbers are not supported by the leadership team, they shouldn’t be numbers that are adopted by the board of commissioners,” Chapman said.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rollikainen@peninsuladailynews.com.
