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Cowlitz County weighs sales‑tax options as commissioners face an $18.5 million shortfall
Summary
County officials reviewed 2026–27 projections and a menu of revenue options — from banking the 1% property‑tax capacity to voter‑approved public safety levies — and took initial direction to place a public safety sales‑tax measure before voters.
Cowlitz County commissioners spent much of a meeting this week reviewing budget projections that show a looming gap and discussing how to close it without eroding essential services.
County staff told the board that the approved 2026 budget projects roughly $61 million in revenue against $74 million in expenditures, and the preliminary 2027 numbers show about $69.3 million in revenue and $79.5 million in expenses. Staff warned that without anticipated new revenues the county faces roughly $18.5 million in cuts.
To narrow the gap, staff presented several revenue options: bank the county’s full 1% property‑tax capacity and new‑construction growth; reimplement a mental‑health sales tax (estimated ~$3.3 million); add a voter‑approved juvenile‑detention sales tax (~$3.3 million); adopt a board‑level public safety enhancement sales tax (nonvoted, ~0.1%); or pursue a larger public safety sales tax (up to 0.3%) that would require a public vote and share 40% of collections with incorporated cities.
One commissioner said the board should not raise taxes without also identifying concrete expense reductions, calling repeated internal shifts a temporary fix that fails to address long‑term overspending. Other commissioners said state mandates, negotiated labor costs and rising insurance premiums leave the county little choice but to consider both cuts and new revenues, and that any voter‑approved measure should go before the people.
The board gave preliminary direction to place a voter‑approved public safety sales‑tax measure on the ballot, with staff noting the May 1 deadline to qualify for the August primary. Commissioners agreed to return in coming weeks to refine options on property taxes, investment earnings, the veterans levy balance and a proposed road‑tax shift.
Public comment at the meeting included residents who warned that larger sales‑tax increases could harm private development and urged the county to prioritize growth strategies that expand the tax base.
Next steps: staff will return with more detailed revenue and timing options and a list of cuts required under different revenue scenarios.
