Port Angeles council considers fact sheet for housing tax proposal

Revenue would fund affordable housing

PORT ANGELES — The city of Port Angeles has prepared a fact sheet for a proposed sales tax increase for affordable housing.

If approved by voters in the Nov. 5 general election, the one-tenth of 1 percent sales tax hike would generate an estimated $325,000 in revenue.

City Council members will discuss the fact sheet, which is expected to be distributed before the general election, at the regular meeting at 6 p.m. Tuesday in City Hall, 321 E. Fifth St.

The revenue from the tax would be used for new construction of affordable housing, rehabilitation of existing housing into affordable housing and construction of infrastructure required for affordable housing developments, according to the fact sheet.

“For these purposes, the city will fund proposals from other private developers, governments or nonprofits,” the fact sheet reads.

“The city itself will not develop, own or manage any affordable housing.”

If the measure is approved, the sales tax rate in Port Angeles would rise from the current 8.7 percent to 8.8 percent.

A $10 purchase within the city limits would cost one cent more and a $100 purchase would cost 10 cents more if Proposition 1 passes.

The sales tax rate in Jefferson and Kitsap counties is 9.0 percent.

The proposition also would qualify the city of Port Angeles for a larger sales tax credit from the state under House Bill 1406, which became law in May.

City officials estimate that the sales tax increase and sales tax credit would generate a combined $7.6 million for affordable housing over 20 years.

Port Angeles City Council member Mike French pitched the sales tax increase for affordable housing. In July, the council voted unanimously to put the measure on the November ballot.

The fact sheet is available on the city’s website at www.cityofpa.us.

Click on “Meetings & Agendas” and navigate to the Sept. 17 agenda packet.

The fact sheet is on pages 39 and 40 of the PDF file or on pages I-9 and I-10 in the packet.

Port Angeles Housing Fund Fact Sheet by Laura Foster on Scribd

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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at [email protected].

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