Prop. 1: Sales & Use Tax for Transportation Improvements
Snoqualmie voters will decide on November 2, 2021, whether to approve Proposition No. 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 spent on taxable goods and services in Snoqualmie. If approved, the increase would go into effect on April 1, 2022.
Programs That Would be Funded by the Sales Tax Increase
The 0.2% sales and use tax increase would fund transportation improvement programs annually such as:
Making these improvements would also reduce expenditures spent on short-term repairs.
Potential Elimination of the $40 Annual 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. No. 1 is approved by voters, the $40 annual vehicle license fee will be eliminated entirely as of April 1, 2022.
If Prop. No. 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 the I-90 temporary on-ramp contribution.
Financial Impact on Residents and Non-Residents
The 0.2% tax increase would generate approximately $550,000 annually, compared to the $406,000 generated annually by the current $40 vehicle license fee.
The $40 fee is primarily paid by Snoqualmie residents. The 0.2% sales and use tax would be paid by all consumers, including non-resident tourists.
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.
Sales Tax 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 Proposition 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.
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, eliminate the $40 annual vehicle license fee, and help rebalance the transportation funding burden between residents and non-residents.
There are several reference documents linked to on the right side of this page. Questions may be directed to firstname.lastname@example.org.
Documents & Presentations
Ordinance 1251 (PDF)
City Council Approval to Submit Ballot Proposition on the 2021 General Election Ballot