Mukilteo mayor vetoes council-approved sales tax
EVERETT — The Mayor of Mukilteo vetoed a council-approved sales tax increase on Monday that was set to make the city’s combined sales tax rate the highest in the state.
By a 4-3 vote, the Mukilteo City Council approved the sales tax increase on June 16 to help pay for transportation improvements. The move would have increased the sales tax rate in the city’s transportation benefit district by 0.1%, bringing Mukilteo’s combined sales tax rate up to 10.7%. It was previously neck and neck with Lynnwood and Mill Creek, two cities with a 10.6% combined rate.
That increase would help bring more money into the district, which helps pay for transportation maintenance and operations within the city. Currently, the city directs about $600,000 per year from its general fund toward its street fund. Bringing in more revenue for the transportation benefit district — which can only be spent on transportation projects — could allow the city to lower its general fund transfers, reducing the burden on the city’s general fund amid budget difficulties.
On Monday, however, Joe Marine, the city’s mayor, decided to veto the new tax, citing impact on local businesses and residents as well as potentially hurting the chances of an upcoming EMS levy lid lift, he wrote in a letter to council. He also wrote that giving Mukilteo the moniker of the city with the highest sales tax in the state could hurt its economic vitality.
https://www.heraldnet.com/news/mukilteo-mayor-vetoes-council-approved-sales-tax/