A new sales tax increase in Spokane would help provide housing. | Stock Photo
A new sales tax increase in Spokane would help provide housing. | Stock Photo
Spokane is considering using a sales tax increase to pay for housing programs and construction.
The city council is considering a decree that would increase the sales tax by 0.01% to finance affordable housing, KREM2 news reported in November.
The new sales tax rate would increase to 9% from the current 8.9%. The council estimates that it could cost an average family $25 every year and raise $5.8 million for distribution.
"It is no secret we do not have enough affordable housing in this community. It is evident everywhere you go," Councilmember Karen Stratton, who is sponsoring the ordinance, said, KREM reported. "We will put together a community committee that will look at applications from non-profits and for-profit builders. So there will be kind of a wider participation."
Primarily, the money will be used to obtain and build new units and programs designed to help provide housing.
However, another council member, Michael Cathcart, says it's a tax hike during the COVID-19 recession.
"My concern is I don't think it's the right time, nor is it appropriate, to raise taxes while we're in the middle of a pretty significant economic downturn," Cathcart said in the release.
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