Bingen considers sales tax hike

The council is expected to make a decision on the issue at that meeting.

If the increase is approved on the 16th, it would go into effect on Jan. 1, 2006.

Prigel said he believed the added revenue was vital to the city's fiscal health.

"Ultimately I think it would be a good thing for the city, given where we're at with revenue sources and projects we would like to continue," he said.

If approved, the extra revenue raised would be set aside for community development projects in Bingen.

"No one likes additional taxes, but our revenue is getting squeezed over the years. We could certainly use it for continuing projects. At this point, we're proposing to put it into a community development fund for capital improvements and projects, not for day-to-day maintenance. It would go for downtown improvements, park improvements, street improvements, playground improvements, that type of thing."

City officials estimate that the extra half-percent of tax would raise between $50,000-$60,000 per year for the city.

Although a sales tax hike has been considered twice -- and rejected twice -- in the past two years, Prigel said he believed the council members were more likely to OK the increase this time.

"It was voted down both times by the council, but things have changed. In the past, council members acknowledged the need but felt the timing wasn't good," Prigel explained. "My sense is yes, but I can't speak for them and there are no guarantees."

One member of the council, Betty Barnes, said she has not yet made up her mind on the added tax. Barnes said she wants to hear from the public.

"Until we listen to the public comment, I will not make up my mind. I hope there's a good turnout, so we know how people feel. It makes our decision easier," she said.

Barnes said she believed the council leans toward approving the sales tax increase, which was last considered in late 2004.

"I think the time has probably come," she said. "I do see it as something the city really does need. I believe we tried to give everybody a break last time. We wanted to let everybody recover from the construction period."

Barnes said she did not believe the one-half percent boost in the sales tax would make much of an impact in retail sales in the community.

"I think for certain types of things, people just shop over there [in Hood River]," she explained. "Living on a border, that's the way it's just going to be."

Bingen is one of only two cities in the state of Washington that have not yet added that extra one-half of one percent sales tax. Stevenson is the other city.

The city of White Salmon approved an additional one-half percent sales tax in January 2003.

"Some people believe increasing the sales tax is going to drive people away [from shopping in Bingen], and the old school of thought is that we should be the lone holdout," said Jan Brending, the city's clerk-treasurer.