Proposition 1 authorizes the City of Snoqualmie to impose a 0.2% sales and use tax on retail sales within the City, for the longer of ten years or, if revenue is dedicated to repayment of indebtedness, the time necessary to repay the indebtedness, as set forth in Ordinance No. 1251.
If Proposition 1 is approved, Ord. 1251 would repeal the existing $40 vehicle license (aka “car tab”) fee and replace it with the 0.2% sales and use tax which, as provided by law, would only be used to help pay for transportation improvements as defined by RCW 36.73.015 and included in the City’s adopted Six-Year Transportation Improvement Plan and Non-Utility Capital Improvement Plan.
The City Council will allocate sales and use tax revenue among the Plans’ projects, which currently include the Sidewalk Replacement Program, Street Resurfacing Program, and Snoqualmie Parkway Rehabilitation Program, among others. The Council may add new projects or revise the Plans in the future.
The 0.2% tax would generate approximately $550,000 annually, compared to the $406,000 generated by the current $40 car tab fee. The $40 fee is primarily paid by City residents. The 0.2% sales and use tax would be paid by all retail sales consumers, including non-resident tourists, ensuring that non-residents share some of the cost of City transportation improvements.
By way of comparison, Snoqualmie residents’ estimated annual per capita cost of the 0.2% sales and use tax ($20.73) would be less than the per capita cost of the car tab fee ($29.66).
