City of Chelan to ask voters to pass a $.03% addition to its current sales tax rate

by Richard Uhlhorn

There is always a cry from the public about new taxes, but the City of Chelan will be asking Chelan residents within its described Tax Benefit Area (TBD) to add .03% to the local sales tax to help Chelan’s Public Works Department continue working on its six-year transportation program.

Chelan Public Works has approximately $26 million infrastructure projects it needs to work on to keep the city’s roads, streets, water and sewer systems up to date. The good news is the new tax only represents 3 cents added to every dollar a customer spends in the TBD.

If passed, this new tax will bring in approximately $900,000 each year. The good news for the Chelan residents, because it is added to sales tax, is that most of those proceeds will come from visitors to the Valley. City administration estimates that visitors and tourists will contribute 75 percent of that tax.

Funds raised from the TBD can only be spent on infrastructure projects within the TBD defined area which is the City of Chelan.

At the Washington State Transportation Council meeting that took place in Chelan Thursday and Friday, Mayor Erin McCardle’s welcoming presentation included the City’s upcoming TBD. “The TBD opens up opportunity for a revenue source of which 75% will be supported by the visitors,” she said.

Transportation Council’s executive director, Reema Griffith asked McCardle how the funds received would be used. McCardle replied that they would be used to leverage into grants and bond issues.

At the City’s City Council meeting on Tuesday, July 22, the Council approved Resolution No. 2024T-001 to add the TBD to the November Ballot.

Residents will have an opportunity to voice their concerns at a few public meetings and possibly a Community meeting in the near future.