Ephrata mulls real estate tax hike

by Lynne Lynch<br>Herald Staff Writer
| November 6, 2007 8:00 PM

EPHRATA - Ephrata may double its current real estate excise tax for property sales to 0.5 percent to pay for future city projects needed for expected growth.

And for those selling homes in Ephrata, an increase means the seller will receive less money from the sale.

For a $100,000 home sale in Ephrata, the seller currently pays $250 for the excise tax, said Grant County Treasurer Darryl Pheasant. If Ephrata's excise tax doubles, the same seller would pay $500 for a $100,000 sale.

The Ephrata City Council plans to discuss the increase at its 7 p.m. meeting on Wednesday. It's likely the city council will hold public hearings before possible approval by the end of the year, said Wes Crago, Ephrata's city administrator.

In Grant County, people selling property in Quincy, Soap Lake, Coulee Dam and Wilson Creek already pay the tax amount being considered in Ephrata.

Ephrata would like to use the money to pay for a pressure zone project that's estimated to cost $1.2 million to $2.8 million, Crago said. As the city grows, the new project would boost water pressure and allow for more water flow, he said.

The project is needed because the eastern half of the city has lower than preferred water pressure.

"It's a high-priority item for the council," he said. "That's where we're seeing a lot of our growth."

The current excise tax is already applied to property sales in Ephrata and has been set at 0.25 percent for many years, he said. Last year, the tax brought $80,000 to the city.

If the council approves an increase, the tax would increase by another 0.25 percent. With the increase, the city would then receive $160,000 in tax money from property sales.

Also Wednesday, the city council plans to talk about again allowing dogs into city parks. Dogs haven't been allowed in city parks since 2003 because of problems with dog waste.

The city council also plans to discuss adding a new school zone for Ephrata Middle School along Nat Washington Way. The proposed zone is less than a mile and new flashing lights are expected to cost about $5,000.