Taxes loom large in legislative talks

Public defense also top of mind, commissioner says

PORT ANGELES — Some bills being considered by the state Legislature could have an impact on local sales, property and utility taxes.

Others that could touch Clallam County residents are in the public defense and behavioral health arenas, county commissioner Mark Ozias said.

Ozias sits on the Washington State Association of Counties’ (WSAC) Legislative Steering Committee, which helps set the policy direction for the association and advocates for those priorities.

“The big bill that we’ve been working on this year is HB [House Bill] 1334,” Ozias said during the commissioners’ Monday work session.

The bill would allow local municipalities to collect either a total of 3 percent more in property taxes annually, or the amount of inflation and population change, whichever is less.

It would replace the current 1 percent cap, which has not kept pace with inflation and has left many counties struggling to fund services, InvestigateWest reported.

“As of right now, I don’t know if the bill is going to move forward or not,” Ozias said.

Another bill, HB 1702, would allow counties to tax businesses that provide public utility services up to 3 percent of the gross income derived from providing that service.

Currently, cities have the ability to levy up to a 6 percent utility tax, Ozias said.

The bill is “in the realm of trying to diversify revenue sources beyond property tax,” Ozias said.

However, he said it is doubtful the bill will move forward in the legislative process.

HB 1717, which aims to incentivize housing development, centers around sales taxes. The bill would allow municipalities to adopt a resolution giving qualifying developers a 50 percent sales tax rebate on state and local sales taxes. The 50 percent that the state does collect would go to the local municipality for additional affordable housing projects.

“That seems to have a little bit of momentum behind it,” Ozias said.

The WSAC also has talked about the possibility of a local graduated real estate excise tax, Ozias said. However, he said it doesn’t seem likely bills of that type will be introduced this session.

One bill that has a fair amount of support, Ozias said, is HB 1592 and its companion, Senate Bill 5404. They would require the state to cover 50 percent of average county public defense costs, and any costs that exceed that amount moving forward.

Despite the support, finding funding for the idea might be challenging, Ozias said.

In the behavioral health arena, HB 1813 would require a realignment of behavioral health crisis services for Medicaid enrollees during the Health Care Authority’s re-procurement of medical assistance services.

Overall, it is trying to “improve the ability for people to access care, especially in rural areas,” Ozias said.

The commissioners typically hear a legislative update every other work session.

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Reporter Emma Maple can be reached by email at emma.maple@peninsuladailynews.com.

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