The City of Snoqualmie has placed Proposition 1 – the Sales & Use Tax for Transportation Improvements – on the upcoming general election ballot. The tax increase would be two-tenths of one percent (0.2%), which is twenty cents per $100 on taxable goods and services.
The increase would fund programs such as the rehabilitation of Snoqualmie Parkway, resurfacing of streets, and replacement of sidewalks. Making these improvements would also reduce expenditures on short-term repairs.
Potential Elimination of Snoqualmie Vehicle License Fee
Snoqualmie vehicle owners currently pay a $40 annual vehicle license fee with a permanent $20 fee going toward City of Snoqualmie transportation improvements and a temporary $20 fee going toward the City’s contribution of the recently completed I-90 temporary on-ramp.
If Prop. 1 is approved by voters, the $40 annual vehicle license fee will be eliminated entirely as of April 1, 2022.
If Prop. 1 is rejected by voters, the permanent $20 fee will remain in effect to pay for ongoing transportation improvements and the temporary $20 fee will be extended through September 30, 2022 to pay for the remainder of City’s contribution of the I-90 temporary on-ramp.
Financial Impact in Dollars and Cents
Currently, residents and non-residents pay a 6.5% state sales tax and a 2.2% local sales tax for a total of 8.7% that is split with the majority going toward King County - including Metro – and the rest going to the City of Snoqualmie.
That equates to a sales tax of $8.70 on $100.00 of taxable goods and services. If Prop. 1 is approved by Snoqualmie voters, residents and non-residents alike would pay $8.90 on $100.00 of taxable goods and services, a difference of twenty cents.
Impact on Snoqualmie Street and Sidewalk Programs
The current $40 vehicle license fee generates approximately $406,000 annually for transportation programs.
The potential tax increase of two-tenths of one percent (or 20 cents per $100) on taxable goods and services would generate approximately $550,000 annually in revenue for streets and sidewalks.
Less Burden on Snoqualmie Residents
Unlike the vehicle license fee paid only by residents, the City anticipates that residents and non-residents would each contribute approximately half of the $550,000, creating a more balanced funding source for transportation improvements.
Facts, reference documents, and informational links are posted on the City of Snoqualmie website at bit.ly/SnoqSalesTax.
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Interim City Clerk