SPOKANE, Wash — Spokane City Council approved an ordinance that increased the sales and use tax by 0.1% in order to pay for construction of affordable housing, and housing supportive services.
The move would bring the city's total sales tax rate to 9.0% from the current 8.9%. Council estimates suggest it would cost an average family $25 per year, and raise about $5.8 million for the city to distribute.
"The lack of affordable housing in Spokane is at a critical level and it needs to be addressed immediately," Spokane Councilwoman Karen Stratton said. "We either pay for it now or we pay for it later. These revenues will help us develop more affordable housing choices - not just for lower income populations, but working families, first time homebuyers and a younger generation that simply cannot afford the current average sale price of a home in Spokane today."
The money will primarily be used to build or obtain new units but could also go to programs designed at helping people get into housing. Stratton says the goal of the council would be to find more creative ways to allocate the funds, and broadening the scope beyond just transitional housing and into home ownership.
"We will put together a community committee that will look at applications from non-profits and for-profit builders," said Stratton. "So there will be kind of a wider participation."
"We cannot continue to standby and pretend that we don't see the large number of people who have been most negatively impacted by the present housing crisis," said Council Member Betsy Wilkerson. "The historical patterns of discrimination in housing markets and housing policy, including families at risk of homelessness has gone on for far too long and it is time we change that pattern in eliminating those barriers so that everyone has a fair and equitable opportunity at safe, clean and affordable homes."
Previously, Council Member Michael Cathcart said he was wary of the tax hike. After all, no matter the size, this still amounts to a tax hike during a pandemic 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," he said.