South county has state’s top sales tax

Published 10:30 pm Wednesday, April 1, 2009

Get ready for some new pain at the cash register.

Starting today, three new tax hikes go into effect — two that bump local sales taxes and one that hits smokers and tobacco users with the largest federal tobacco tax increase ever.

Together, the new sales taxes will cost 6 cents on every $10 purchase. The per-pack tax on cigarettes will soar to $1.01 from 39 cents.

After the sales-tax hikes, south Snohomish County cities such as Edmonds, Lynnwood, Mountlake Terrace and Mill Creek will share the distinction of having the highest regular sales tax rates in Washington, at 9.5 percent. Unincorporated parts of the county outside all public transit districts pay a 7.7 percent sales tax — one of the lowest rates in the state.

The sales tax increases will pay for expanded bus service and to eventually bring light rail to Lynnwood. A small portion also pays for more funding for mental health and chemical dependency programs. The tobacco money is set to finance a national expansion of health insurance for children.

The taxes were approved months ago. In November, a half-cent sales tax hike was approved by voters as part of the Sound Transit package. In December, the Snohomish County Council approved a countywide tenth-of-a-cent tax that will raise $11 million a year for mental health and chemical dependency programs.

Retailers in south county know they are now in the state’s highest sales tax bracket, said Barbara Earl, the chairwoman of the South Snohomish County Chamber of Commerce.

“It is unfortunate that this happened at a time when the economy is struggling like it is,” said Earl, who said the chamber and its members supported the transit vote. “But the people are the ones who voted this in.”

Nationally, officials hope the new tobacco taxes will help recharge anti-smoking campaigns, said Dr. Timothy Gardner, president of the American Heart Association.

The tax increase “is a terrific public health move by the federal government,” he said. “Every time that the tax on tobacco goes up, the use of cigarettes goes down.”

That makes sense, said Kimberly Watson, a Lynnwood resident who was smoking a cigarette while waiting for a bus Tuesday morning. She supports the transit tax, she said.

But she’s uncertain about more tobacco taxes.

Earlier this month, cigarette prices jumped when major cigarette makers bumped prices. Watson’s favorite cigarettes now cost between $7 and $8 a box. And that’s before today’s tax hike.

“Since they keep going up, I might have to quit smoking,” she said. “That’s the only good thing about it.”

The Associated Press contributed to this story.

Chris Fyall: 425-339-3447, cfyall@heraldnet.com.