City repeals $20 tab fee Will stop being collected end of March

MOSES LAKE — Barring any unforeseen problems or hiccups, people who shop in Moses Lake will start paying a 0.20 percent sales tax in April.

Keeping their promise, on Tuesday night the Moses Lake City Council repealed a previously instituted $20 tab fee. The council previously passed an ordinance to create a Transportation Benefit District (TBD), which can impose a 0.20 percent sales tax, subject to a simple majority via referendum vote, and impose an additional vehicle licensing fee. All funds generated through the increases are required to fund street maintenance and pedestrian improvements in the city.

The board went the tab fee route in February and the city started collecting the fee, which was projected to raise $333,600 in revenue annually, in October. The decision was also made to place the sales tax proposition on the November ballot, which was ultimately approved by voters.

The sales tax is projected to raise $1.3 million annually and will end in 10 years. The funds will go a long way in putting a dent in the city’s $13.4 million backlog of street projects that need funding. City Manager John Williams said after the passing of the sales tax proposition the city got the necessary documents to the Department of Revenue, who advised the city that they are able to get the sales tax increase onto their quarterly adjustments. That means the sales tax can start being collected on April 1.

The TBD board made the commitment that when/if the sales tax passed, the $20 tab fee would be repealed and it would no longer be collected. Williams explained the Department of Licensing sends out license tabs in a couple of different time allotments. Typically there is a 120-day notice, usually for people who have violations they need to take care of before they can renew their tabs, and between 60 and 90 days a notification is usually sent out for a standard renewal.

During Tuesday night's meeting Williams explained that if the council moved quickly and sent notification to the Department of Licensing of the city's intent to end the tab fee, it could be removed effective at 11:59 p.m. on March 31 and on April 1 the sale tax could start to be collected. The council considered Williams' presentation and unanimously approved the repealing of the $20 tab fee.