GRANITE FALLS — After trying to find other ways to cut expenses, the Granite Falls City Council has agreed to a series of tax increases for businesses and property owners.
The key decision was to increase property taxes. For the owner of a $200,000 house, annual taxes will increase $40.
"Our budget was so tight as it was," Mayor Lyle Romack said. "There just wasn’t really much to cut from. The total package was pretty minimal, spread out over the city."
The council voted for a new business and occupation tax, increases in business license and planning fees, and higher property taxes, as well as a new franchise fee for Waste Management.
The overall total will bring in an estimated $18,700 in additional revenues to the 2004 budget, which is set at $5.35 million.
Romack and City Council member Debbie Taylor said losing that amount could have meant laying off a city employee.
"We certainly didn’t want to lose an employee," Romack said. "We’re already shorthanded as it is."
The B&O tax, which charges 0.2 percent of gross revenues, applies to manufacturers, wholesalers and financial institutions.
Business license fees will increase from $30 to $45 annually. The council reduced that increase from an earlier proposed fee of $60.
In the public hearings about the increases, local business leaders, including Chamber of Commerce President Rob Salsgiver, said they did not like the tax hikes even while acknowledging the city’s tight budget.
Taylor said the council took a lot of time searching for ways the budget could be cut instead of raising taxes. But the budget is already tight, and taxes have not been increased in several years, she said.
"So we felt that while, yes, it’s an increase and an extremely difficult decision to make — very tough — not wanting to burden our town anymore, this should keep our services intact," Taylor said.
Reporter Scott Morris: 425-339-3292 or smorris@heraldnet.com.
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