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It’s hardly the popular choice, but it’s one of the few available.
Next Tuesday, the Spokane Valley City Council is expected to give its approval to a 6-percent telephone utility tax to pay for road maintenance, including snowplowing.
If it passes – the council unanimously approved a first reading on July 21 – this will be the first time taxes have been raised by the city since incorporation in 2003.
The new tax would raise money specifically for the city’s street fund, which has been slowly diminishing as less and less state gas taxes have been coming in during recent years.
It’s been stated the city needs at least $4 million to keep up with normal wear-and-tear road maintenance needs, and another $4 million could be used for preventative upkeep of the city’s street system.
While there has been no significant public outcry over the proposed tax as of yet, city residents will have a chance to sound off on the issue at the Aug. 12 meeting at 6 p.m. at Spokane Valley City Hall, 11707 E. Sprague.
The tax would apply to all telephone service – including cell phones – and would raise between $3 million and $4 million a year. Broadband telephone service will also be included.
Ken Thompson, the city’s finance director, said on a $50 phone bill, the tax would amount to about $3. And the last meeting where the tax proposal was discussed, Mayor Richard Munson said it was a “very, very difficult decision” but one the council should make in order to keep the city’s streets in good working order. Not keeping up on roadwork would “be negligent” of the city, he said, and the money would not go into “the great black hole of the general fund.”
Utility taxes are common and one of three ways cities can collect money, besides property and sales taxes. Out of 276 cities, 234 have some form of utility tax.
Several months before the city incorporated, a panel of economists predicted that Spokane Valley would be fiscally strong enough not to impose any new taxes.
“If you were to incorporate, you’d be one of the most financially strong in the state,” Bob Jean, city manager for University Place, told incorporation proponents in 2001.
However, street maintenance – along with public safety – is one of the city’s biggest costs each year. With the state gasoline tax as the only dedicated source for street maintenance, other funding possibilities are needed. It’s possible, however, that the state Legislature could create in the future a way for municipalities to create some type of street utility.
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By
Mike Huffman
