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January 26, 2011 in City
Tab tax returns to council agenda
A Spokane City Council vote two weeks ago rejecting a $20 annual vehicle tax appears to be only a bump in the road for supporters of the new fee.
Council President Joe Shogan vowed this week to reconsider the issue, and the council will decide Monday if it will hold a Feb. 14 hearing on the vehicle tab fee.
Last year, Spokane leaders created a Transportation Benefit District, which can enact vehicle fees of up to $20 without a public vote.
“We are going to proceed on the TBD come hell or high water – whether we pass it or not – because a lot of talk with no funding is a lot of talk,” Shogan said Tuesday during a council meeting covering street funding.
The tax is expected to raise about $2 million a year. Collections would start six months after final passage.
Earlier this month, a majority of council members indicated that they supported creation of the tax, but the measure failed because of disagreement over how to spend it. Shogan had argued that revenue should be used only for pavement maintenance. But others said that the money should be open to any project on the city’s six-year street plan and that 10 percent should be devoted to sidewalks. After the proposal to broaden the measure was rejected, Councilman Jon Snyder said he would no longer support the tax, and it failed on a 3-4 vote.
Council members have since come up with a compromise spending plan that would keep the requirement to spend 10 percent of the funds on sidewalks. The rest would be dedicated to pavement maintenance.
“Anyone who’s driving the streets lately probably expects us to take another stab at it,” Snyder said on Monday.
Shogan said he’s satisfied with the compromise.
“It’s a lot more focused than opening it up to all capital projects in the six-year plan,” Shogan said.
During Tuesday’s council discussion about streets, Councilman Bob Apple criticized his colleagues for not letting voters decide.
“I can’t imagine what your rationale is for not asking the voters about the tab,” Apple said. “I think it’s wrong, and I hope the voters take a really negative act towards those who think that they don’t have a right to have an input on it.”
Shogan said the tab tax is the only option the city has to get the money needed to improve the city’s potholed streets in the short-term.
“At some point we have to decide, ‘Do we have the guts to really do anything or are we just going to turn it over the voters or what,’ ” Shogan said. “I could see it if this was a multimillion dollar burden on the voters. It’s a $20 tab fee. That’s it. That’s not even a tank of gas.”
Nine cities have created tab fees since the legislature gave them the power to do so. If approved, Spokane and Prosser would be the only two cities with tab fees east of the Cascades.
MAC faces angry crowd 
ZagChuck on January 26 at 12:33 a.m.
“Last year, Spokane leaders created a Transportation Benefit District, which can enact vehicle fees of up to $20 without a public vote. ” = Elected officials last year ignored the voice of the people. They set the tax at $20, because they have to get voter approval for anything more than that.
“The tax is expected to raise about $2 million a year. Collections would start six months after final passage.”….Shogan said. “I could see it if this was a multimillion dollar burden on the voters. It’s a $20 tab fee. That’s it. That’s not even a tank of gas.” Perhaps someone should tell Shogan he needs to go back to math class. last time i checked, $2 million was in fact “a multi-million burden” on taxpayers.
In addition, still missing is the ORIGINAL reason the vote for this tax failed. http://www.spokesman.com/stories/2010/dec/08/city-vehicle-tab-tax-in-limbo/
Local 270 of the AFSCME didn’t make concessions as requested during the budgeting process, yet kept a full staff. Other unions made concessions and still had cuts in personell. This tax is rewarding the very union that wouldn’t help the city balance the budget. Kind of like rewarding their lack of interest in the community.
Dazzeetrader11 on January 26 at 2:55 a.m.
Exactly true Chuck. 270 gave us a big Pfffffft!
No leadership from Verner on this. She let them get away with it.
Completely irresponsible for the city to ask the taxpayer to fund this. Verner spent $13 million in unnecessary real estate.half of which she doesn’t use. She needs to go and so does this idea of a tab tax.
Snyder, Rush, Waldref etc need to establish license fees, tab fees, license driving fees, and a road tax for their bicycle people. RIght there the city would raise plenty! AND it would be fair to everyone else in this time of need.
No TAB TAX! ALready she’s put through a water tax, sewage and garbage tax as well as a tax to replenish the $13.5 million Verner spent which was for rate stabilization funds..which was supposed to go for river clean up. She blew this money on nothing…….
Open_Spokane on January 26 at 4:49 a.m.
Until all city workers give pay concessions, there is absolutely no need to raise taxes. Joe Shogan should use his strong arm tactics on city workers and not on people who elected him.
As for the self serving city workers who refuse to give concessions, start cutting their wages and benefits!
liarsinnews on January 26 at 6:17 a.m.
Except for Bob Apple, seems to me we have a ship of fools running the city. Mayor Verner and Shogan think nothing of raising taxes regardless of the economic climate. The Lilac City is wallowing in red ink because city hall spends every cent it collects in revenue. These pseudo intellects have raided the reserve accounts, even money from a insurance claim of millions of dollars and have the a mitigated gall to even thinks of stealing more money from the taxpayers.
jimvw2 on January 26 at 6:43 a.m.
I just love how the John Birchers in this community can find a way to make every fiscal challenge the fault of organized labor. Explain please how a wage concession this year creates on ongoing source of road maintenance funds into the future.
Roads are the responsibilty we all bear, unionized workers, bicycle riders and gun loving, union-hating John Birchers alike, even those of us who just work hard and pay our taxes without whining about it.
Our roads are a mess because every city council since Vickie McNeil was mayor has refused to deal with the loss of federal revenue sharing in the Reagan revolution. The city relied on this money for road maintenance and never grew the spine to replace it with a local tax. Now the chickens have come home to roost. Congratulations anti-taxers of the 80s. You got what you wanted. Stop cackling about the consequences. And stop blaming the working stiff or the bike rider. Own up to your legacy.
deacon46 on January 26 at 6:57 a.m.
No new taxes. 20 bucks this year is 40 bucks next year…..We are taxed enough, there is enough revenue to cover the needs of the city. True needs- not pension plan increases or pay raises or more city empoloyees. I want my money going to things that are important to me. it is the city spending that needs attention.
ZagChuck on January 26 at 7:03 a.m.
I don’t hate unions; I think everyone has the right to be represented against over-zealous employers who don’t follow the appropriate practices in the work place.
I do have a problem with public employee unions that peddle a little too much conflict of interest power.
For example. The AFSCME, SEIU and Teachers unions combined for nearly $9 million in campaign contributions in Washington State alone, from Jan 01- nov02 of 2010.
$9 Million a year is a pretty big chunk of public influence for just 3 unions, and the majority of the money the spend seems to be spent in a manner that would be considered a conflict of interest if it were a PAC or a Corporation that was making the donation.
Furthermore, it was the unions that got together and criminally bounced a Democrat off the ballot on the West side.
Dangerous consolidation of power is never good.
In the same way a parent doesn’t reward the child who has a tantrum and demands his allowance plus a bigger piece of cake, this union shouldn’t be rewarded for their behavior.
The bigger point is simple. Govt. needs to learn to spend less. This means every level of Govt.
It continues to balance its budget with tax increases rather than cuts in spending.
The city budget this year, with all its’ “Cuts” still spends $12Million more than last year. At some point, they must stop reaching into our pockets. I believe we’ve already reached that point
ZagChuck on January 26 at 7:14 a.m.
http://dailyuw.com/2011/1/25/public-sector-unions-detrimental-public-large/
“Washington has the dubious honor of having the eighth-highest state government debt per capita, at $2,226”
“Much of Washington’s state budget is tied up in wage and benefit contracts for state employees — 60 percent of the budget, according to a Seattle Times editorial by Bill Baldwin of the Washington Policy Center. Because these contracts are so difficult to alter due to union power, the state government is forced to cut from other parts of the budget, such as higher-education funding. Most public employees do not have large incomes; many of them have middle-class incomes. But it should be easier to dismiss any and all public servants if the public is better-served without them.”
Nice article, ties in well with this conversation.
liarsinnews on January 26 at 8:24 a.m.
jimvw2: Taxes? Spokane has the highest city utility tax in the united states at 25%, the effective rate. Name one city over a 8% city tax. The average city is 6%. Compare any city in the US using the average city employee wages, against the private sector and John Birchers be damned. That`s rubbish. What other city in the US can a city employee retire with as little as 5 years of service, at age 50 and not be penalized. NAME ONE!!
misjustice on January 26 at 9:13 a.m.
We paid a $20 city fee & a $10 county fee when we lived in KC, MO and that was over 30 years ago!
The fees paid for several things & it wasn’t that much of a pain to pay it. You get stickers that go on your windshield showing it has been paid.
Get with the program. If it will help to get rid of these potholes/craters then I’m for it. It’s just time the road crews started making roads that last longer.
Coffee on January 26 at 9:31 a.m.
The problem with this tax is that it will not be added to the street funds as a plus but will just be used to replace money that will be taken out of the street fund and put into the general fund.
The pot holes will just get deeper and the unions richer.
johnclarke on January 26 at 10:57 a.m.
This was voted down. What, just keep bringing it up until it passes? I am tired of this attitude of “it’s only twenty dollars” - yeah right - just one more little tax, just one more little levy. I am tired of fire, school, ems..all of these levys and bond issues…..endless drains on the public. Look at your tax bill available on line at the county assessor and you will see the drain on your pocket. If I were a city employee pulling down 100k, or a fire chief pulling down $140k maybe I would not mind the 20 bones. I’m not, and I mind.
soccermomsusie on January 26 at 11:03 a.m.
Next thing you know, they will want a B&O Tax just because every other major city in Washington has one!
I won’t stand for that! I don’t care if my property taxes are helping foot the bill for wealthy corporations not to have to pay a B&O Tax in my town. God will reward us for taking care of those He put over us. Maybe not in this life….
When they start talking B&O, won’t you join me and the Cowles Family to fight this monstrosity? Just because every other city has jumped off a bridge into the “Equitable Tax” River, doesn’t mean we have to too.
HEAR OUR VOICE!!!!!
Dazzeetrader11 on January 26 at 11:25 a.m.
jimvw…unions have earned what they’re getting. Most would agree that paying 30% more for a tomato just because some union was given permission to mange it.. is detestable. Same tomato mind you…just costs more.WHy? some union wants their cut and the politicians might want the union vote. So corrupt.
John.clarke…you’re coming around. Is this mrs clarke writing above. This proves there is some red (R) in your veins john.
There is some hope afterall.;)
Chuck, you’re excellent on this topic. The reaso this keep s coming up is that they WANT to pass it and won’t listen to the public. 1000 people could show up and say NO…….Shogan would say that he won’t take testimony since everyone agrees.
He’s an oaf but he gets his way. This is a corrupt tax initiated by Verner…..once again to cover her spending. SHe needs to go and this tax needs to fail.. Delay it till a vote can be taken by the people or they’ll ram it through.
west on January 26 at 11:29 a.m.
john clark @
Most fire dept employees, especially the upper, chiefs, etc don’t live in the city of Spokane……
DavidBray on January 26 at 11:37 a.m.
Because they haven’t the initiative to go to Olympia and work on changing some laws that would allow more liberal methods of cities in Washington to raise funds, they will keep finding ways to create or raise taxes…and then they’ll waste the money they raise. This is Washington state, one of the most liberal states in the country. It isn’t capable of money management or quality leadership.
Our streets are falling apart faster than we can maintain them because the contractors use cheap materials and work slow. Spokane will NEVER have streets to be proud of and the citizens will always have to pay the price in constantly increasing taxes or car repairs, no matter what.
I’m afraid we are a very superficial city.
eagleproducer on January 26 at 11:39 a.m.
gramma: It’s not “road crews” who build the roads. It’s private contractors and since they usually wrangle maintenance contacts into their original agreements they have little incentive to make roads that last a lifetime.
zagchuck reminds readers that unions poured nine million dollars into LOCAL elections, issues while his beloved, out-of-state Karl Rove led PAC’s spent more than that just trying to defeat Gregoire. I urge him to explain how local workers exercising their free speech with money is evil while disconnected billionaires trying to buy our elections is just fine. Please detail the conflicts of interest the WEA incurred during this last election campaign. Saying “seems” is different than actually occurring.
misjustice on January 26 at 11:49 a.m.
I didn’t say the road crews were city or county workers. But they are “road crews”, private or not.
My point about the $20 is Spokane is 30+ years behind Kansas City, MO because we had a city & county tax/tab/sticker we had to pay for every year back in 1981. Just be glad it’s only $20. I’d hate to see what KC charges 30 years later for their fees.
Orange on January 26 at 12:39 p.m.
Prosser? Businesses, including a branch of ours, are closing or have closed in the last calendar year. It’s becoming a ghost town there.
Is this what Spokanes financial future is turning into? I know for fact a few businesses in Spokane will be filing bankruptcy petitions in the next couple of months.
So here’s my thought, go for it, but keep it to the citizens of the City of Spokane, leave the County residents out of this.
Zagchuck, unions and the government both are twisted in their own special ways.
Cheezwhiz on January 26 at 12:40 p.m.
$20 here, $20 there. It will never be enough. If taxes increase faster than your wages, there is a problem. I keep hearing how many citizens are forced to take pay cuts and decrease their spending. Might be better if our city did the same.
johnclarke on January 26 at 1:13 p.m.
Daisy, we are all conservatives. Everyone wants a conservative government, but please tell me where those politicians are - or when we had a true conservative President? The Republicans are pretty good at expanding government and spending us into debt, the facts speak for themselves. Every Republican administration in recent history has failed to cut spending, in fact just the opposite has occurred.
http://en.wikipedia.org/wiki/National…
Please note which Presidents increase the debt. Notice the 20% increase during the Bush years. I do not believe this includes the two wars. Did everyone think that trend was going suddenly disappear the day Obama took office?
Again I ask, where are the Republican specifics for balancing the budget? What changes to the corporate tax code? What military weapons programs can we cut? Simply spouting “cutting taxes will create jobs” just does not seem to be working, at least not in the past 12 years.
Trust me Daisy - I am dead set against the unions, the huge city payrolls and all the bonds/levys bleeding us. This tax is projected to raise 2 million per year, I promise you I could find that 2 million in the city budget in like 1 minute.
james_l on January 26 at 2:01 p.m.
For all of the hand wringing over our excessive taxes, Washington State ranks 35th highest for combined state and local tax burden:
http://www.taxfoundation.org/files/sl_burden_washington-20080807.pdf
Compare this to our neighboring Republican utopia of Idaho, which ranks 13th highest:
http://www.taxfoundation.org/files/sl_burden_idaho-20080807.pdf
jddavis on January 26 at 2:32 p.m.
Shogun’s “it’s only $20” attitude reflects the problem with most in political positions today. Yeah, it may be “only $20” but that is $20 per vehicle owned AND it is “our” $20 not his or the city’s. Why not put it before the voters to decide?
As for taxes paid in KC, Idaho, or other cities in Washington I don’t care…I live here.
james_l on January 26 at 3:37 p.m.
I recently spent nearly 20 years of this “Tab Tax” on replacing a shattered tire and front end work on my car caused by a couple major potholes.
I don’t mind spending $20 per year, as long as I can see what I am getting for my money. Transportation is the life blood of our economy. Someone has to step up and pay for maintaining our roads and until the broken transportation funding system is fixed, I think this is a small price to pay.
west on January 26 at 3:54 p.m.
Hey STA! Here ya go!!
http://www.seattlepi.com/local/434059_transpo25.html
Cheezwhiz on January 26 at 3:57 p.m.
The gas tax wasn’t enough? The huge increase in property tax assessments wasn’t enough? (could you sell your house right now for what it assessed at?) The ginormous amount of money we get from the Lotteries isn’t enough? Etc, etc, etc…. More! More! More!
Cheezwhiz on January 26 at 4:11 p.m.
Where is Tim Eyeman? Come out, come out, wherever you are. We need your help again.
Remember when they told us that the police stations, fire stations, and libraries would close after the tab fees were reduced? They just got bigger. We bought more fire trucks, cop cars, built new fire stations and libraries, loaded all of these with the necessary stuff, etc… Point is we seem to get by just fine and the Government will always tell you that they need more money.
TheRoyLarsen on January 26 at 4:51 p.m.
jimvw2 called this one right.
thmarshal on January 26 at 6:44 p.m.
Ok . How about taxing everyone that uses the city streets. People that live out of the city-state (Idaho), coming in going to work every day. What about people living and working here, having (sometimes expired) California, Oregon, Florida etc. plated. vehicles. I feel these people don’t even support Washington State by not licensing their vehicles here, let alone Spokane
I don’t feel only city tax payers should be responsible-punished-burdened to fix something for past/present negligence of city politics, or other than Spokane City residents use.
Dazzeetrader11 on January 26 at 6:56 p.m.
Well….you all could call in and force a vote. I happen to believe the Council members would be scared to death if the public demanded a vote on their own taxes. And yret…if they want to be re elected, they’d pay attention to a huge call in campaign.
Clarke…I’m honestly didn’t know. How bizzare…the way you write and think, I’m a bit surprised. OK then Johnny…I’ve got my eye on you.