PORT ANGELES — Two of three Clallam County commissioners voted Tuesday to raise the sales tax back to 8.4 percent for items purchased in unincorporated areas.
Commissioners Mike Chapman and Mark Ozias passed an ordinance that restores the now-8.2 percent tax to its full amount effective April 1.
Commissioner Bill Peach voted no.
Chapman and Ozias had already voted Jan. 12 to notify the state Department of Revenue that the tax would be restored.
Revenue requires a 75-day notice to change to an optional 0.5 percent portion of the sales tax.
The ordinance, which passed after a public hearing Tuesday, was a necessary step to make the action official.
Originally pitched as a six-month tax holiday, the two-tenths-of-1 percent reduction was approved last April as an open-ended cut with no set expiration date.
The tax break means a $100 purchase costs 20 cents less now than it did before the reduction took effect July 1.
It also represents a loss of nearly $1 million in county revenue if left in place for an entire year, County Administrator Jim Jones said.
Last year, Chapman joined Peach and former Commissioner Jim McEntire in unanimously supporting the sales tax cut in an effort to stimulate the local economy.
Chapman applauded his fellow commissioners Tuesday for sticking to their respective campaign promises on the tax issue.
‘Right thing to do’
“I’m changing my mind because I think it’s the right thing to do,” Chapman said.
“But I am confident that this fall, the voters will render the deciding mandate.”
Chapman said he changed his mind because other elected officials and county department heads raised concerns over the long-term sustainability of the county budget.
“We’re not talking about a new tax increase,” said Chapman, a Port Angeles Democrat who announced last year that he would not seek another term this fall.
“We’re going to be talking, for future commissioner races, about a restoration of the sales tax that’s been collected in this county for decades or a reduction, and it will be the voters who will choose the candidate to break this stalemate.”
Chapman encouraged Ozias, a Sequim Democrat, and Peach, a West End Republican, to find common ground and to maintain the civility they displayed Tuesday.
“Do not let this decision draw a wedge between the two of you,” Chapman said.
“The two of you will have tremendous decisions to make in the future with regards to either revenue or service cuts. This is a pretty full room. If you put a service cut on the table, this room will be overflowing.”
Speakers
Six public speakers testified in support of keeping the sales tax where it is now.
Two others testified in support of restoring the optional sales tax during a 90-minute public hearing.
Some of the same speakers testified on the tax in public comment periods before and after the hearing.
“I don’t think that my position here is a surprise to anyone,” said Ozias, who campaigned last year on restoring the sales tax to its previous amount.
“In almost anything that we talk about, there will be opposition. I would just like to share with my fellow commissioners and with the audience, I heard zero opposition to this on the campaign trail.”
With structural spending increases on the horizon, Ozias said it would be difficult to maintain the county’s current budget over the long term.
“People aren’t looking for less service from the county,” Ozias said.
“They’re looking for more service.”
Improve economy
Peach, who campaigned in 2014 on a no-new-taxes platform, said the county can provide more service by improving the local economy.
He said the county can manage its finances with a minimum reserve of about $9 million in the general fund.
“The issue that I share with you is the need for us to focus on supporting the people in our community where $1 or $2 or $3 makes a significant difference,” Peach said during board deliberations.
“I’d just ask you to think about the people that are on a fixed income and don’t have any alternatives.”
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rollikainen@peninsuladailynews.com.
