No new road taxes until diversion of current road taxes stops | Out of Balance

By Marcia Kelbon
Posted 1/8/25

If you spend much time traveling the bumpy streets of Port Townsend, you probably have enjoyed free testing for loose dental appliances and fillings. Our county roads outside of the city are in a …

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No new road taxes until diversion of current road taxes stops | Out of Balance

Posted

If you spend much time traveling the bumpy streets of Port Townsend, you probably have enjoyed free testing for loose dental appliances and fillings. Our county roads outside of the city are in a much better state of repair, thanks to the dedicated efforts of the Jefferson County Public Works Department. The county is seeking a source of additional funding in the form of taxes and/or fees from citizens living in unincorporated Jefferson County to keep them that way. The issue leads to some basic questions about the appropriate use of tax revenues.

I attended a public meeting held by the Board of County Commissioners on Dec. 16 concerning the proposed formation of a Transportation Benefit District (“TBD”). Public Works Director Monte Reinders made a compelling case that the continued quality of our roads is in jeopardy. Available funding has not kept up with inflation in recent years. The 1% annual cap on increases in real estate tax levies was noted in particular, as was the loss of approximately $100,000 in annual historic timber revenues and decreased fuel tax revenue. Decreased staffing has resulted.

Also, our chip seal program has been cut in half in recent years, which will likely lead to road deterioration if not remedied.

From a self-interested Quilcene perspective, I also note the unrepaired slide that has narrowed Lords Lake Loop Road to one lane for several years now. Were the Public Works Department receiving all of the taxes already being collected from citizens and still this short of necessary funding, I would advocate for voter approval of a road levy lift. This is not a department that wastes funds, and it is very good at leveraging the tax dollars it does receive to obtain grant funding.

But the Public Works Department does not see a sizable portion of the road levy taxes paid by citizens in unincorporated Jefferson County. Each year, a portion of the road taxes is diverted to the general fund. That diversion will be $520,000 for 2025, down from $720,000 a few years ago. I understand that the diverted funds are used to support the Sheriff’s department. I agree that the Sheriff’s department should be fully funded — roads and public safety should be prioritized as core functions of our county government. But cutting one core function to fund another is not the answer, as opposed to looking at less critical expenditures.

In the context of over half a million of tax dollars levied and collected for road maintenance being siphoned off for other purposes, the County has formed the TBD and proposes to charge a $20 fee for each vehicle licensed in unincorporated Jefferson County and/or to charge an additional 0.1% sales tax. Together those two new fee and tax funding sources are estimated to bring in over a million dollars a year for road maintenance.

A statutory construction question exists, in my eyes, as to whether both the fee and the tax can be charged under RCW 36.73.065 and I trust James Kennedy, prosecuting attorney for Jefferson County, will sort that out.

The $20 licensing fee could be increased to $40 in two years, and after two more years could be increased to $50. Exactly what fees and taxes will be imposed to fund the new TBD will be decided in a subsequent public meeting, likely to be held in February.

Nobody at the public meeting opposed good roads and at least two citizens voiced support for a TBD to maintain them. But the majority of those testifying opposed the additional fees and taxes being imposed, noting that times were already tight for many local citizens. Representatives from two vehicle-intensive businesses were particularly concerned.

I personally am not in favor of these additional fees and taxes being imposed until all of the road levy tax dollars already collected are allocated to road maintenance. It seems wrong to me to ask people to pay twice for the same work.

On a side note, there was a bit of discussion about whether electric vehicles pay their fair share toward road maintenance, given that they do not pay fuel taxes at the pump. Two citizens commented at the meeting about the extra state licensing fees that they pay on EVs, one reporting that he pays $220 per year in such fees. While a portion of such fees goes to roads, other portions go to a state EV fund and a state “multimodal” fund, according to wsada.org/ev-manual. Unknown to me is whether any of those funds trickle down for county roads.

If you are a resident of unincorporated Jefferson County, keep a look out for the next public meeting on this topic and let your voice be heard.

Marcia Kelbon is an attorney and engineer based in Quilcene.