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Council discusses possible local sales-tax increase under ESHB 2015 as part of revenue package
Summary
Lake Forest Park council members raised a possible local sales-tax increase enabled by ESHB 2015 as an alternative or complement to a property-tax levy; staff agreed to prepare revenue estimates and further analysis for the governance meeting.
At the June 12 work session, several council members discussed whether to pursue a local sales-tax increase under ESHB 2015 as one element of the city’s revenue strategy to offset rising public-safety and operational costs.
Councilmember Lehi introduced the sales-tax idea and asked staff to present revenue modeling. Staff noted that an increment allowed under ESHB 2015 could broaden the city’s revenue base beyond property taxes and that the models would show the projected revenue over a six-year period alongside levy options. Director Vaughn said staff would prepare examples of what modest changes (for example, an increase that moves the municipal sales-tax rate from 10.3% to 10.4%) could generate over multiple biennia.
Several council members stressed the need to explain to residents how a sales-tax increase differs from a property-tax levy: sales tax is collected at the point of sale and affects transactions rather than annual property-tax bills, while property taxes affect homeowners directly. Councilmember McCartney asked staff to bring a formal proposal and background on ESHB 2015 to the next governance meeting; the mayor agreed to put the idea on the Monday agenda for further exploration.
No formal vote was taken on a sales-tax proposal; staff will return with models and legal guidance before council considers placing a measure on the ballot.
