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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

City Utility Tax Could Be Extended To County Areas

Here are some questions and answers regarding the proposed city-county consolidation:

Question: What is the rate of the city’s utility tax? Could it be levied on Valley residents if consolidation is approved?

Answer: The city levies a 17 percent tax on water, sewer and garbage bills. It collects 6 percent on natural gas, electricity and telephone bills.

Those taxes, which provide about a quarter of the city’s revenue, cannot be levied in unincorporated areas.

Under consolidation, they could be used anywhere in the county. Most likely, it would be used in the urban services area, which probably would include portions of the Valley and other suburbs.

The city-county council would set the rates.

In addition to those utility taxes, cable television customers pay a 5 percent franchise fee whether they live inside or outside the city limits.

Q: Besides spreading the utility tax to new areas, could the new government add taxes that either of the existing governments cannot levy?

A: No. In fact, the charter requires a public vote if the government wants to impose a business and occupation tax or other taxes not currently used by the city or the county. No vote is required under existing city and county governments.

Q: Who’s responsible for the Marks family lawsuit if the city and county consolidate?

A: The family is suing the city and county for $40 million over a 1986 police raid of the homes of Jimmy and Grover Marks. Several state courts have ruled the raids illegal.

In August, Spokane County paid the city $390,000 to shed its responsibility in the lawsuit. As a result, responsibility for potential damages lies solely with city taxpayers.

If the city and county merge before the lawsuit is settled, the financial responsibility will return to all taxpayers.

Q: What are the arguments against the merger?

A: Opponents say residents in the suburbs may pay more taxes if consolidation passes. And, they say, consolidation may erode city services by spreading them across a larger area.

Proponents acknowledge that taxes in the suburbs may rise to city levels, but only if the new government decides to provide city-style services in those neighborhoods. The tax increase would assure that city services aren’t diluted to provide more police and better streets in the suburbs, they say.

Residents in Athens, Ga., say their services have suffered while those outside the former city limits have improved since Athens consolidated with Clarke County in 1990. Residents in communities that consolidated in the 1960s and ‘70s, say the problems eventually are solved.

For more arguments on either side of the issue, call the pro-consolidation group, We The People, at 458-0407, and the anti-consolidation group, We The Taxpayers, at 456-8752. Both groups provide speakers for debates and other meetings.

, DataTimes