May 1, 2008

County to seek sales, use tax increase

By Jennifer Larsen

News editor

Adams County voters may find a ballot measure in the November election that requests approval for a two-tenths of one percent increase in local sales and use taxes.

If the measure passes, sales tax would increase to 7.8 percent sales tax at Adams County businesses, with one-tenth (0.1) of one percent for juvenile correctional facilities and jails and 0.1 percent for emergency communications according to state statute.

Anyone that purchases something in Adams County currently pays one-tenth of one percent above the local rate of one percent for a total of 7.6 percent.

A total of three-tenths of one percent is allowed by statute. The county currently receives 0.1 percent from sales and use taxes for criminal justice.

The county commissioners requested that 0.1 percent from the state when the county was getting ready to build the Adams County Sheriff’s Substation in Othello, according to Treasurer Laura Danekas. Prior to that, counties across the state requested one percent above the state rage of 6.5 percent.

The Adams County Commissioners and Adams County Sheriff’s Office have wrestled with the ever-increasing dilemma of financing criminal justice for several years.

Several elected officials, including the sheriff, met with the commissioners on April 14 to discuss how to proceed. The group unanimously agreed to seek voter approval for a two-tenths of one percent levy.

“I think you should go ahead with this. You have my support,” said Treasurer Laura Danekas. Assessor Dave Anderson and Auditor McBroom, in addition to Prosecuting Attorney Randy Flyckt and Sheriff Barger, agreed.

Costs for the criminal justice system continue to increase – from indigent defense and trial expenses to facilities and technology – but revenue sources don’t necessarily increase in tandem.

“I think we’re at a point in time that there are obvious improvements in store and I don’t have the funds,” Sheriff Doug Barger said. “Sales tax is probably one of the fairest taxes. It’s based on what you buy.”

The county also continues to face increasing fuel costs in addition to the loss of revenue since it was discovered in November 2007 that an annual levy shift was harming other taxing districts.

“Because of the problems with the levy shift, there will be a reduction in property taxes, which is a reduction in revenue for the county,” said Commissioner Rudy Plager. The county estimates that loss close to $300,000 based on last year.

The commissioners and the sheriff have discussed possible uses for the additional revenue generated through the sales tax levy. Preliminary discussions included funding costs of incarceration at Martin Hall, which is $125 per day.

Although the state sales and use tax rate is 6.5 percent, every shopper knows that rates vary from city to city.

Sales and use tax rates vary for incorporated and unincorporated areas within some counties. The Adams County rate is currently 1.1 percent, which includes the one-tenth of one percent. The local rate in Kittitas County increased to 1.5 percent on April 1 to fund emergency communication systems and facilities.

“I believe there was overwhelming support to continue with the 911 system and to do the work to the system,” Barger said, referring to the two public meetings held in Othello and Ritzville in late June 2007, where about 50 people attended each.