Spokane7
50°
November 16, 2010 in City
City Council delays vote on tab tax
Leaders hope unions will accept concessions
Motorists in Spokane soon could have to pay an extra $20 a year to license their vehicles.
But a final decision on whether to impose the local tab tax was delayed Monday by the Spokane City Council to wait and see if city’s largest employee union will agree to budget-balancing concessions being sought by city leaders.
“I don’t feel comfortable asking taxpayers to pay money out of their pockets in fees or tax increases when our employees are not willing to give up their cost-of-living increases next year,” said City Councilman Steve Corker. Council members will consider the issue again Dec. 6.
City officials say a tab tax would raise about $2.6 million annually by taxing the nearly 130,000 vehicles registered within Spokane. But because the tax won’t be effective for at least six months, the city would receive about half that amount in 2011.
Some City Council members say they’re open to creating the tax and using the new revenue on streets even if the union doesn’t agree to concessions. Councilman Richard Rush asked city administrators during Monday’s meeting about the possibility of contracting out street work.
“There’s only so much putting off into the future and on future taxpayers and future citizens the expense of maintaining or restoring our city infrastructure,” he said.
Although the money raised by the tax must be spent on city street and transportation projects, state law allows cities to divert money currently used on streets from other taxes to other departments – meaning the tax won’t necessarily boost transportation spending.
Council members have yet to decide if other services such as police, fire or libraries would benefit from the tax boost.
City Council President Joe Shogan said if Local 270 of the American Federation of State, County and Municipal Employees, which includes street department employees, refuses concessions, the extra money should be used to replenish the city’s dwindling rainy-day fund.
The city faces a nearly $13 million deficit next year. Spokane Mayor Mary Verner’s proposed 2011 budget calls for the elimination of 120 jobs, 70 of which are filled. Fourteen of those jobs are in the street department. Verner has said layoffs could be avoided if unions agree to give up their 2011 pay raises and pay a higher share of their medical benefits, but no unions have yet agreed to do so.
The City Council earlier this year endorsed Verner’s strategy of across-the-board cuts and allowing each city union to avoid layoffs if they agree to her proposed concessions.
State law allows cities to create Transportation Benefit Districts that can impose tab taxes up to $20 per vehicle without seeking voter approval. The council voted last month to create the district. When the council discussed the proposed tax on Monday, it technically was acting as the “Transportation Benefit District Governing Board.” It has the same membership as the City Council, but its decisions can’t be vetoed by the mayor.
Car owners in eight other Washington cities, including Seattle, Edmonds and Prosser, currently pay a $20 local tab tax.
Verner has said she would leave the decision about the tab tax up to the City Council and has not taken a formal position on it. However, she signed the law last month that created the district, setting up Monday’s decision on the tax.
In an interview before Monday’s council debate, Verner suggested it may not be best to use the money to pay for city employees because the tax isn’t necessarily permanent. She suggested that it might be better to spend it on construction projects the city has planned within the next six years.
“We’re going to have to have a serious community conversation about how to use the money,” Verner said.
MAC faces angry crowd 
Orange on November 16 at 5:05 a.m.
City resident only tax right?
DHF on November 16 at 5:48 a.m.
What part of the 30 dollar car tabs did you people not get. They have added weight fee’s and they are not what the people voted in. Give me a break, 20 bucks more without a vote of the people. Does someone have another Drag Strip that the city could invest in. That money will never go to where it is intended. Glad I dont live in your city. Your already taxed to death. DHF
Elkay on November 16 at 7:03 a.m.
This governmental thought process is so typical and infuriating:
“Some City Council members say they’re open to creating the tax and using the new revenue on streets even if the union doesn’t agree to concessions.”
What don’t they (City Council and unions) understand about this current economy? How much more nickel-and-dime financial pain do they want to inflict? And when will they have “enough”?
lewis8457 on November 16 at 7:20 a.m.
20 wont be enough they will keep increasing it until they get to the 100 they are allowed to add to the fees. The employees that make over 80 grand a year should all get mandatory pay cuts. The hell with the unions.
Elkay on November 16 at 7:31 a.m.
Agreed, Lewis. The way this community has been screwed, I’d like to see Taxus Interruptus.
hawken on November 16 at 7:36 a.m.
Fortunately, I live in the county!
If I lived in the city, the tabs on my 1999, “Boss” Jeep Wrangler, due 12/1, would cost 70% more to license, with the $20 increase…. and that doesn’t count the emissions test I first have to get done.
That equates to a 70% tax increase, while the unions demand pay increases,,,, while other city employees are losing their jobs!
More “brilliant” government problem solving and unions at their best!
liarsinnews on November 16 at 7:42 a.m.
Verner, with her “green” mind, if the tax were enacted, would no doubt spend more money for bicycle stripping. Verner says she will leave the decision up to the city council. Spoken like a true CEO who is incompetent to be running a corporation (our city). Verner, should be abolishing non-essential departments. Instead, Verner has one of the departments, her historic preservation department, adding more buildings to the list, at the expense to the property owners without exemptions whose real estate taxes increase to pay for the services that are provided to the fat cats receiving the tax exemption. You know like, police, fire, street maintenance, etc. And BTW, the department is nothing more than a redundancy of what the county is required to do that the city merely passes the stuff on as they do not have the authority to implement the work necessary. And lest we forget, the department was resurrected after years without it when the county handled all the work but the fat cats pushed to have the department open up again. Just a week ago, some of the players were awarded one of the Mayoral proclamations. Jim Kolva of the people in the group, has said, the 10 years tax exemption should be raised to 20 years.
Jon on November 16 at 8:33 a.m.
Verner has said she would leave the decision about the tab tax up to the City Council and has not taken a formal position on it.
Looks like the Mayor is sitting on the fence, again! Paid to make tough decisions but not this time!
bdr on November 16 at 9:20 a.m.
Actually 20 buck tab will save you money if you live up North and travel to I-90.
consider the fact if you drive north and south on Division, Market, Monroe, or Ash daily….your eating up your time and gas in stop and go traffic probably getting 16-20mpg.
The money from the tabs is destine for the new North South freeway that will allow you to speed along at a economical 60mph greatly increasing you fuel mileage and reducing your commute times.
Spend a little and save a lot.
Christine Gregoire suggested the increased car tabs to fund the freeway because of the state budget shortages.
hersfeld on November 16 at 9:26 a.m.
What do you expect! Other than Nancy McLaughlin - the entire council is composed of individuals who ignore the problem. The City has a spending problem - not an income problem. Unlike every small business, individual or family who has to cut their budget when the income decreases - the City merely increases taxes and allow the unions to dictate their pay.
avocet on November 16 at 10:13 a.m.
How wrong is it to tax city residents more, when so many drivers from outside the city drive on our streets? And destroy them with their studded tires, yet WE are the ones paying for the damage?
And btw, kudos to Pres. Shogan for telling those parents with the screaming kids to leave the council chamber. Does anyone use babysitters anymore?
MrDavis on November 16 at 10:52 a.m.
When discussing tax cuts, we hear the politicians talking about whether they can be ‘paid for’, and can the government afford them. When do the politicians ask us if we can afford more taxes, or how we will pay them?
Dazzeetrader11 on November 16 at 10:39 p.m.
This is Verner..no doubt. She put Rush, Snyder, Waldref up to it. That and the parking lot tax she wants. When will Spokane see that she spent the city nto debt and now wants reasons to pay for her and the Council’s mismanagement.
Greenies and trees. Vote them out…and raise hell all the way to the next election. I do know this much…my dad took all his cars and registered them at the lake….out of the city of Spokane. Verner=Gregoire=Obama=Marr= Rush= Snyder=Waldref.
The only way this changes is by voting them out. Wake up.
Bdr…grow up. You don’t SAVE money by SPENDING money. Neither should be taxed. This is the liberal sickness. We own the place you guys! You run it! Vote em out.