Valley Chamber to consider impact of proposed utility tax

The Greater Spokane Valley Chamber of Commerce will look at the impact of a proposed 6 percent utility tax on businesses at a meeting from 7:30 to 9 a.m. Tuesday at Spokane Valley Tech, 115 S. University Road.

Most of the Spokane Valley City Council members will be there.

The tax proposal, which would tax water, sewer, natural gas, garbage and power by 6 percent, drew a crowd to the council meeting on election night.

Many were angry that the majority of council members ran for office on a promise of no new taxes, but got behind this proposal.

The new utility tax would replace dwindling tax revenue coming in from a 6 percent utility tax on telephone lines that has been used to finance street maintenance. The phone tax would be dropped if the new tax is approved.

The city projects it needs between $6.1 million and $6.4 million to preserve and maintain its roads, but annual revenue from the phone tax has fallen from about $3 million in 2009 to $2.3 million and is expected to continue declining because households are reducing their number of phone lines. The estimated revenue of the proposed 6 percent utility tax would be $7.7 million.

The Greater Spokane Valley Chamber of Commerce conducted a phone survey about the utility tax and will present some of the results at Tuesday’s meeting.

The proposed tax has been taken off the City Council’s agenda.