Spokane7
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August 9, 2010 in City
$20 tab tax could get OK without public vote
Even though a new $20 tax on license plate tabs got pulled off the agenda Monday by the Spokane City Council, city leaders said they expect to bring it back within the next few weeks.
However, Monday night was the last chance to get it on the November ballot, which means voters will not have a say in the new tax.
Voter approval is what Councilman Bob Apple said he wanted when he agreed to bring the issue forward.
“Our job is to honor the will of the voters, not to dictate it to them,” he said. “We are looking at major layoffs. That is something we have to take serious. It’s something we need voters to weigh in on about what we should do.”
But Councilman Jon Snyder and Council President Joe Shogan said they were elected to make tough calls for their constituents.
“We can’t take everything to a vote. People elect us to make decisions,” Shogan said.
State law allows counties and cities to impose up to $100 in fees on residents every time they renew their license plate tabs. However, local governments must get voter approval for any fee costing more than $20.
In addition to the $20 tab fee, Shogan said he is exploring a tax on commercial parking stalls. Depending on how much the city charges per stall, that new fee could raise $500,000 to $2 million, he said.
Initial discussions call for implementing the tax on commercial parking stalls downtown. But Shogan said the boundaries have not yet been decided, and they could include the entire city.
“We’ll do something” to generate new revenue, he said. “But we don’t have a $12 million arrow in our quiver.”
That amount is the projected shortfall facing city leaders. Mayor Mary Verner has said it could force her to lay off up to 120 city employees at the end of the year unless city unions agree to concessions or the City Council increases taxes.
That news came only eight weeks after Verner predicted 40 layoffs because of budget woes.
Shogan said he has had discussions for the past two or three years with Spokane County commissioners about instituting a countywide license tab fee. “It would make my job easier,” he said.
But so far, county leaders have balked at the idea, he said.
The tab fee would generate about $2 million if the city can collect the money for a full year. But it will take six months for state officials to get the new fee up and running.
“So the longer we wait, the less money it will generate,” Shogan said. “The mayor is already meeting with the bargaining units.”
Councilwoman Nancy McLaughlin said she won’t support either the tab fee or a commercial parking stall tax.
“I’m not interested in raising new revenue,” she said. “Taxpayers are always asked to pay more and more. Even though legally none of the unions have to come to the table, my hope would be that they would do everything in their power to make sure every one of them stays employed.”
That would mean agreeing to wage and benefit cuts, she said, “just like the private sector has had to do.”
“If they care about those they are serving and their fellow employees,” McLaughlin said, “they would be stepping up to the plate to do the right thing.”
As for Apple, he said it was clear earlier Monday that he did not have the votes to pass his proposal to take the tab fee to voters, so he withdrew the motion before the 6 p.m. meeting.
“I would have loved to see it go to the voters,” he said, “but it won’t.”
Snyder said the city is facing unprecedented budget shortfalls and potential layoffs.
“Voters have a say in representative government. I take that responsibility very seriously,” Snyder said. “The ballot is not the only way to address budget issues.”
Closing Geiger: Wise or worrisome? 
nwTowncrier on August 09 at 6:17 p.m.
“Apple said he fears council members may come up with other new taxes that won’t require voter approval”
Funny…I thought that is exactly what Bob Apple was trying to by bringing up the $20 fee/tax that would not need voter approval. What an excellent example of obfuscation.
Dazzeetrader11 on August 09 at 9:00 p.m.
Nope…he said he wouldn’t vote for it unless the council put it to a vote. My guess is that the council will do the work behind closed doors…and the citizens won’t even know.
What happened to Verner’s transparency? What has she ever done again?
lewis8457 on August 09 at 10:24 p.m.
The city has spent over 11 million dollars on new property in the last 11 months, how is it now we are broke?
What will this tax do to the average person? Give them more of a reason to take STA. And how does that help anyone? Less cars on road equal less tires sold less gasoline consumed, less insurance bought, etc. Less people needed fro those jobs.
And STA how do they do it? Their buses just get hammered with the condition of the roads, their repair costs must be through the roof.
No Mr. Apple you need to find some where else to find that money i recommend we fire all 7 officers having to do with Otto Zehm’s death, fire Chief Kirkpatrick and give her duties to Ozzie. Then give drug test to all police and firemen any failures are fired on the spot, with no retirement.
Instead of making one cop drive in a car alone, have him ride on a motorcycle in good weather, you don’t need everyone in a car.
skim all departments down by 20% from what i have seen there are still too many people standing around.
There are some good suggestions that wont cost me any more money Mr. Apple how about thinking inside the box for a change?
Dazzeetrader11 on August 09 at 10:36 p.m.
$11 million Lewis….correct… This tab tax will offset her purchases. SOmebody has to pay. It’s one big basket….$11 million here, $% million there…big union payoffs….ect etc and then there’s STIll the matter of the river cleanup fund that’s long gone. Apparently there’ smore too. I suppose $2 million gained from this new tax will help but she hasn’t told the Spokanites the full story of debt just yet.
Hooe she’s packing her bags. SPokane will be left with a mighty debt. Remember..with liberals…they never tell you the full story…just the part they have to. More to come..
The tab tax will be passed behind closed doors. Waldref, Rush, Snyder, Verner all need to goooooooooo!
liarsinnews on August 09 at 10:39 p.m.
Another of my comments that was posted, evaporated. Figures.
Scoutster on August 09 at 10:50 p.m.
This seems a perfectly logical and efficient method to raise necessary revenue. It’s an attempt to keep up with taxes lost thru other means because of the poor economy.
It’s a user tax. And the cost of maintaining roads keeps going up.
It seems responsible to try and keep capital expenditures operating at optimum. We don’t want to get behind even more on road maintenance.
Sounds like good management to me.
Dazzeetrader11 on August 09 at 11:37 p.m.
User tax it’s not. ..unless verner wants the citizens to pay for “using” air to breath. Nope Scout..it’s just a plain old tax put forth to cover silly management by a sillier council and mayor.
Road maintenence should be paid for…not by new taxes…instead should be handled by not spending millions of taxpayer dollars on goofy things…unneeded things…things voted against by the public. Those things……there wouldn’t be a need for new taxes if Verner had kept the money she already had.
Sound like good management now Scout?
Sorry DIck…must have been too close to the truth.
Orange on August 10 at 6:31 p.m.
This only applies to those who reside inside the city limits?