County finance staff brief commissioners on top general-fund revenue sources and tax mechanics

County finance staff presented a line-by-line briefing on the general fund’s leading revenue sources, telling commissioners that property taxes remain the single largest source for the general fund and that a typical $417,000 home yields about $411 to the county’s general fund in 2026.

The presenter, referred to in discussion as John, said the county levied $20,882,000 for 2026 and expects to collect about 99 percent of that total. He emphasized that much of a homeowner’s tax bill goes to state and school levies and that county increases affect only the county share: “No matter if you’re in Kalama… or in Kelso… you’re paying the same value in taxes to the county,” the presenter said.

Staff walked through other major lines: local retail sales and use tax (budgeted $11.5 million for 2026, with 6.5 percent of the rate passed to the state), specialized sales taxes such as the criminal-justice levy and E-911 (each 0.1 percent), and large lease payments (a $7.5 million component tied to the landfill). The briefing noted interest earnings budgeted at $2 million for 2026—with early indicators the county may exceed that figure—and detention charges from cities and the state as a recurring revenue stream for jail services.

The presenter explained how PUD privilege tax receipts are distributed: the state’s 2 percent excise on gross power sales sends 41.6 percent to schools, while the remaining share flows to counties; county treasurers then distribute 0.75 percent of local PUD gross revenues to cities by jurisdiction. “In 2026 the county received $3.162 million. Of that, the county retained $2.3 million,” the presenter said.

Staff also described the timber excise tax process and its budgetary implications. At harvest, a 5 percent excise tax is collected with 4 percent retained at the county level and 1 percent to the state; the county distributes receipts to taxing districts by a priority system that funds debt and school capital levies first. The presenter cautioned that timber revenue is volatile—"If it's a low year, we may not receive any money"—and can produce significant swings for smaller districts that rely on that revenue.

Commissioners asked for clarifications about jurisdictional calculations and whether federal or state harvests are included; staff said harvests on federal lands that result in a taxable harvest are included in distributions starting in 2014 and that the treasurer’s office performs the jurisdictional allocations.

The presentation closed with an overview of motor vehicle license fees (2025 collections exceeded budget) and a reminder that the top-10 lines account for roughly five-sixths of the general-fund revenue picture; staff said about 100 smaller revenue lines are consolidated into an “other” category.