Opponents force vote on port tax levy

Posted 7/24/19

A citizens’ petition has forced the Port of Port Townsend to seek voter approval for increased taxing powers, even though the Port Commission has expressed second thoughts about whether it would move ahead with the levy.

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Opponents force vote on port tax levy

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A citizens’ petition has forced the Port of Port Townsend to seek voter approval for increased taxing powers, even though the Port Commission has expressed second thoughts about whether it would move ahead with the levy.

When the Commission in March approved a resolution to inform county taxpayers it might levy a new tax, commissioners intended merely to preserve that. As they studied the need for improvements to docks at Port Townsend Boat Haven and dredging as well as dock renovations at the marina in Quilcene, commissioners got their paperwork in ahead of time in case new taxes were needed, thinking they could drop it if the time was not right.

But since a petition signed by more than 2,000 registered voters (8% of registered voters) was submitted to the Jefferson County Auditor on June 19, the levy must be put on the ballot in November.

Without a petition submitted to the county auditor, the port would be able to impose the levy without asking for a vote. The port’s attorney, Frank Chmelik, originally told port commissioners they would be able to take back their resolution and keep the levy from being put on the ballot. Because of this, port commissioners have been debating for the last month whether or not they should rescind the resolution, or if they should let the public decide whether or not to fund the port further with the tax.

The county attorney and county auditor, however, did not agree with this reading of state law.

“I understand that some or all of the Port Commissioners believe that if the port rescinds the resolution, there would be no proposition to put on the November 2019 ballot,” wrote County Auditor Rose Ann Carroll in a letter to the port. “I have reviewed RCW 53.36.160(2) and can find no language in it where the legislature has stated that once the Auditor’s office certifies the signatures of eight percent of the port district voters, that the Port has the power to cause the proposition to not be placed on the ballot.”

Carroll wrote that she believes it is her statutory duty to place the proposition on the ballot for November 2019 whether the Port Commission still wants it or not.

Interim Executive Director of the port Jim Pivarnik said now it is up to the port commissioners to decide whether or not to rescind it.

Even if they do vote to rescind it, the levy will still be on the ballot. The port commissioners will vote at their meeting at 5:30 p.m. on July 25.

The Port of Port Townsend’s Industrial Development District was formed in 1966, Pivarnik explained, which allows the port to levy a countywide property tax that is limited in time and scope. The state statute allows three levy periods. The port’s first six-year levy period was taken in 1966, and the funds generated were used to make improvements to the Point Hudson jetty.

The maximum amount that can be taxed is $15 million over a period of 20 years, Pivarnik said.

The nature of the multiyear levy means that coming up in November, commissioners could impose a tax of up to forty-five cents per thousand dollars of assessed property value.

But it is unlikely that they would tax that much, Pivarnik said.

Instead, they could tax 10 cents per thousand in 2020, and then decide not to tax anything the next year. But because the commission is always changing, it is difficult to know how future commissioners would levy taxes.

With the citizen petition forcing the Port Commission’s hand, commissioners have been struggling over the decision they made. Since the levy must go to a vote of the public, is there enough public trust for it to pass?

Port Commissioner Pete Hanke, District 3, said he wants to keep the levy on the ballot, to let the public decide for themselves.

“I think it’s a mistake to rescind it,” he said at the meeting. “The issue of our funding is critical. It would be a mistake to not let the community have a discussion on this.”

But commissioners Bill Putney and Steve Tucker were not positive the time was right for the levy.

“I’m afraid if we put this on the ballot now, we’ll get a ‘no,’” Tucker said. “An effort needs to be made to convince the public.”

Members of the public have asked the commission to elaborate what the money will be used for and if the community will have input in the decisions.

But time is of the essence for some port projects, like the Point Hudson jetty, which is deteriorating, and the Quilcene marina, where dredging will make way for increased access to Dabob Bay and Hood Canal beyond.