Proposition 1: Sales and Use Tax Increase

At the Snoqualmie City Council meeting on July 12, City Council Members approved placing a proposition on the November 2, 2021 general election ballot. 

Snoqualmie voters will decide whether to approve Proposition 1 to increase the City of Snoqualmie sales and use tax by two-tenths of one percent (0.2%) for local transportation improvements. That equates to an increase of 20 cents per $100 dollars of all taxable sales within Snoqualmie, including purchases by residents and non-residents. If approved, the increase would go into effect on April 1, 2022.

Proposition 1 would also repeal the $40 annual vehicle license fee in its entirety effective March 31, 2022, the day before the sales tax increase goes into effect. 

WHAT WOULD THE 0.2% SALES AND USE TAX INCREASE FUND? 

The City has more transportation needs than sources of available revenue. The 0.2% sales and use tax is expected to generate approximately $550,000 from residents and non-residents in annual ongoing revenue for transportation improvements, allowing for some of the City’s transportation-related projects to move forward. It would pay for or fund transportation programs needed to improve the safety and integrity of the transportation system. The following are just a few examples of what the tax would support.

  • Street Resurfacing Program 
  • Snoqualmie Parkway Rehabilitation Program
  • Sidewalk Replacement Program 

See more examples in the City’s Six Year Transportation Improvement Plan (STIP) and Non-Utility Capital Improvement Plan (Non-Utility CIP).


WOULD NON-RESIDENTS PAY THIS TAX INCREASE?

Yes. All those who purchase taxable goods or services within the City of Snoqualmie would be subject to the tax, such as the more than two million tourists who visit Snoqualmie Falls each year, Snoqualmie business employees who commute to work, visitors attending special events, and those from other cities shopping or dining in Snoqualmie. The 0.2% sales and use tax would help to capture some of the transportation impacts generated by non-residents.

WHAT WOULD HAPPEN TO THE $40 VEHICLE LICENSE FEE? 


If Snoqualmie voters approve Proposition 1, the City Council would repeal the $40 annual vehicle license fee, also known as the car tab fee. The vehicle license fee is paid only by vehicle owners residing in Snoqualmie, whereas the sales tax would apply to residents and non-residents alike. 

The $40 vehicle license fee would be repealed as of March 31, 2022, the day before the sales tax would become effective on April 1, 2022

WHAT IS THE FINANCIAL IMPACT ON RESIDENTS?  

The estimated impact of the vehicle license fee is roughly $29.70 per capita (includes adult residents and children). The estimated impact of the proposed sales and use tax is approximately $20.70 per capita. Therefore, the City expects an average resident to pay approximately $9.00 less in the sales and use tax than the vehicle license fee annually. The reason why the City expects to generate more revenue from the sales and use tax is because non-residents would pay the tax upon their retail purchases in the City.  The vehicle license fee is largely focused on residential car ownership. 

WHAT IS THE BOTTOM LINE?     

A vote to approve the 0.2% sales and use tax on November 2, 2021 would generate more ongoing revenue for critical transportation improvements, repeal the $40 vehicle license fee, and help rebalance the transportation funding burden between residents and non-residents.

QUESTIONS?

Questions and comments can be emailed to Nicole Wiebe, Interim City Clerk, at nwiebe@snoqualmiewa.gov.