Impacts on Cowlitz County Government if I-695
is Enacted
(Figures for Cowlitz County Government do not include impacts on
cities and other taxing district within Cowlitz County)
|
This information is provided for informational purposes only and is not intended as an expression of support for or opposition to the proposed measure. |
Prepared by the Cowlitz County Office of Financial Management, assisted by the State of Washington Public Disclosure Commission, under the direction of the Cowlitz County Board of Commissioners. |
Q. What is I-695 and what does it provide?
A. If approved by the voters in November, Initiative 695 would:
-
Repeal the current motor vehicle excise tax of 2.2% currently applied to the value of motor vehicles.
-
Increase the annual license fee on vehicles from $23.75 ($27.75 on new vehicles) to $30.00.
-
May require tax and fee increases for state and local governments to be subject to voter approval.
-
Become effective January 1, 2000.
Q. What is the Motor Vehicle Excise Tax (MVET) and what is it used for?
A. MVET is an excise tax levied by the state for using a motor vehicle on the highways. The current tax rate is 2.2% of the value of the vehicle based on the MSRP (Manufacturers' Suggested Retail Price). Vehicles are depreciated on a state schedule to a minimum value of 10% of the MSRP after 13 years.
Revenues are deposited into various accounts for many
purposes. Monies distributed to cities, towns and counties are used for
sales tax equalization, local public safety and criminal justice activities,
public health services, and assistance to rural counties for economic development.
Monies are also used by local transit districts for public transportation.
Q. What would be the fiscal impact to Cowlitz County Government? (Figures for Cowlitz County Government do not include impacts on cities and other taxing districts within Cowlitz County.)
A. I-695, Section 1 Impacts: The
attached chart shows Cowlitz County Government revenues would be reduced by approximately
$1.4 million for calendar year 2000 1
I-695, Section 2: The impacts of Section 2, requiring voter approval
for any tax increase, are not possible to calculate. The language has been
subject to varying interpretation. In addition, estimates for the number
of elections and the outcome with regard to potential tax increases are not
known.
____________________________
1 Source: State of Washington Office of Financial Management
Estimated Reduction of Local Revenue Distributions Under I-695
Cowlitz County Government
(Figures
for Cowlitz County Government do not include impacts
on cities and other taxing districts within Cowlitz County.)
| Cowlitz County | CY2000 | CY2001 | CY2002 |
| A. Public Health | 290,742 | 313,712 | 337,810 |
| B. Rural County Assistance [2] | 500,521 | 703,496 | 744,651 |
| C. Criminal Justice [2] | 495,052 | 695,808 | 736,514 |
| D.
Current Expense (Camper/Trailer Excise Taxes) |
14,071 | 19,847 | 21,106 |
| E. Road Fund | 143,000 | Unknown | Unknown |
| Total Reductions | $1,443,386 | $1,732,863 | $1,840,081 |
| Estimates
from State of Washington, Office of Financial Management. [2] Note: CY200 distributions will include 4th Qtr 1999 receipts. Total estimated reduction in revenue calendar years 2000-2002: $5,016,330. |
|||
A.
The Cowlitz County Health Department receives MVET distributions for
public health services.
[1]
Source: State of Washington Office of Financial Management.
Questions: Cowlitz@co.cowlitz.wa.us
Return to Financial Management Home Page