WOODLAND — This November, voters will have a third chance in five years to increase the city sales tax to cover road improvement projects.
Proponents say the additional tax will allow everyone using Woodland roads to pay their fair share of the upkeep. Opponents of increased sales tax say Washington state already has some of the highest rates in the country.
WOODLAND — This November, Woodland voters will decide who will have more power: its elected mayor or hired city administrator.
Transportation Benefit District
This November, Woodland voters are again asked to decide whether to create the district that cities and counties in Washington can form to fund city, state and federal road projects. In 2016, Woodland voters narrowly missed creating a Transportation Benefit District and increasing the city’s sales tax by a roughly 3.6% margin. The next year, the measure failed by a 6.3% margin.
The city of Woodland could become part of a growing trend this if voters on Nov. 8 approve a sales tax hike to finance street repairs.
Woodland City Administrator Peter Boyce said other road funding sources like the state and federal gas tax don’t generate enough revenue to maintain most municipalities’ infrastructure.
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According to the nonprofit Municipal Research and Services Center of Washington, which provides legal and policy guidance, there are more than 100 Transportation Benefit Districts in the state. MRSC states the districts typically collect money through car tab fees, like in Longview and Kelso. According to the Cowlitz County Auditor’s Office, Longview’s and Kelso’s Transportation Benefit Districts each add $20 to residents’ car tab fees.
Woodland city officials Monday updated Southwest Washington Congresswoman Jaime Herrera Beutler on a stalled project to update an intersection…
Instead of adding to car tab fees, Woodland is looking to increase the city’s sales tax by 0.2% so anyone purchasing goods inside Woodland will contribute to road funds. MRSC reports the Castle Rock Transportation Benefit District uses the same model.
For or against
Woodland Mayor Will Finn wrote the argument in support of creating the Transportation Benefit District, which would increase the local sales tax, in the county’s voters’ pamphlet. Finn states people living inside city limits bear the “financial burden” of funding the city’s road system for everyone who uses the streets, including those who live in neighboring cities and counties. Finn said Woodland shoppers would pay $0.02 for every $10 purchase if Proposition 2 passes, accumulating to an estimated $300,000 a year for road projects like paving streets and increasing pedestrian safety.
Boyce said most Washington state and federal road construction grants also require matching local funds, which could be generated by a Transportation Benefit District and support longtime projects like updating the Interstate 5 exit 21 off ramp. The interchange at the south end of Woodland handles traffic entering and exiting I-5 at State Route 503, which is heavily congested.
However, Washington state already has one of the highest combinations of local and state sales tax rates in the country, according to the Tax Foundation. The national nonprofit lists Washington with the fourth highest tax rate in the nation at 9.29%, just behind Louisiana, Tennessee and Arkansas. Low-income households also are the most affected by sales tax increases, according to the Institute on Taxation and Local Policy. According to the nonprofit, the lowest 20% of income earners in Washington contribute 17.8% of their income in state and local taxes.
