City funding and the B&O

Meeting the needs of a growing Vancouver

Scot Walstra
is the Public Affairs Committee chairman of the Greater Vancouver Chamber
of Commerce. For more information, visit the Chamber’s Web site at
www.vancouverusa.com/public-affairs-updates.htm.

Vancouver City Manager Pat McDonnell recently authorized a 60-day postponement of two public hearings set by the Vancouver City Council to take testimony on a proposed business and occupation tax, in order to allow for further discussion and business community outreach.

The delay is a positive step. Business input is critical to finding the most optimal solution in an already highly taxed business community – especially when that community is located just across the border from a no-sales-tax state.

On Aug. 23, the Board of Directors of the Greater Vancouver Chamber of Commerce appointed a task force dedicated to helping the city meet its financial needs. This group will likely be made up of leaders from various industries, including auto, retail, services, manufacturing, professional services and real estate.

The Chamber task force is planning to meet with representatives from other local businesses and business and community organizations. Our goal is to provide city leaders with real-world business input and to help the city identify the revenue sources and efficiencies necessary to keep up with growth and remain competitive.

The Chamber acknowledges that the city’s ability to attract new businesses, annex areas within Vancouver’s urban growth boundary and create jobs is critical to our community’s capacity to grow and prosper. We also acknowledge City Manager McDonnell’s efforts to keep Vancouver growing and his commitment to improving city services.

Before the current B&O ordinance was proposed to the Vancouver City Council, two years of effort and input from a finance working group went into a city-requested funding proposal. Working group members represented businesses, neighborhoods and civic leaders. Revenue-related recommendations from the group included investigating the possibility of a countywide gas tax and other local transportation funding options, creating a business license fee surcharge dedicated to transportation and considering a property tax levy lid-lift to fund other critical services.

The City Council and staff moved away from those recommendations. Instead, they are considering reinstating a citywide B&O tax ordinance after phasing out B&O about four years ago.

Chamber members overwhelmingly oppose implementing the current ordinance. We believe the city should continue efforts to better manage costs and consider a broader variety of revenue streams to accomplish budget goals.

We encourage business owners, civic leaders, business organizations and others to make the most of the 60-day delay. Weigh in by writing letters and sending email to City Council members and city officials.

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