[Vision2020] sales tax

[Mark Solomon]

All,

I wish that all sales tax dollars collected in Moscow came back to 
Moscow or even Latah County, but that's not how it works. Only 11.5% 
of sales taxes collected are sent back to the cities and counties of 
the state. The rest goes to various places the Legislature has 
directed (mostly the state general fund).

Even then, it is not dollar for dollar (or 11.5%/dollar) but is 
distributed by an arcane formula stipulated by the Legislature that 
is based on ratio of population and increment change in assessed 
market value across all the cities and counties of the state. The 
formula tends to favor cities and counties with large growth rates 
which may or may not have anything to do with the amount of retail 
sales. To the best of my knowledge, the distribution formula hasn't 
changed in decades while the state retail shopping patterns certainly 
have. As an example, the sales tax collected at the Palouse Mall 
likely comes from WA residents as well as Moscow residents but the 
formula only counts changes in Moscow population as a ratio of 
distribution.

The only tax that is collected that goes 100% to local units of 
government is the property tax. Sales or income taxes, as currently 
distributed, are not substitutes.

Mark Solomon