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HomeMy WebLinkAboutHEARING Public Safety Enhancement Tax JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Judy Shepherd, Finance Director Amanda Christofferson, Grant Administrator DATE: December 22 2025 SUBJECT: PUBLIC HEARING for a proposed public safety enhancement ordinance that authorizes collection of an additional sales and use tax of one-tenth of one percent pursuant to RCW 82.14.345 STATEMENT OF ISSUE: For a number of years, Jefferson County exercised its authority to divert a portion of taxes collected for the Road Fund to support traffic law enforcement. Last month, Jefferson County voters overwhelmingly approved of an additional 0.2% sales tax in unincorporated Jefferson County for funding road maintenance through the Transportation Benefit District(TBD). The Board of County Commissioners (Board)has decided that diversion from the Road Fund to the General Fund for traffic law enforcement is no longer viable, given the deferred needs for road maintenance. Accordingly, there is an urgent need for funding to support and improve public safety services received by residents of Jefferson County. In addition, the County's current budget difficulties require it to look for additional sources of revenue. One source of additional revenue would support various criminal justice services is in Section 201, Chapter 350, Laws of Washington 2025 (RCW 82.14.345), where the Washington State Legislature authorized a new 0.1% sales tax for Public Safety Enhancement purposes. This is an implemented tax with a requirement for authorization by the Board of County Commissioners. Under RCW 82.14.345(1)(c), the County may impose the tax authorized only if it meets the requirements to receive a grant under RCW 43.101.540, which requires that the state Criminal Justice Training Commission(CJTC)and has issued and implemented policies and practices as required under RCW 43.101.540(3) and (4)may not impose the tax authorized under RCW 82.14.345. Accordingly, an ordinance (or resolution) authorizing local collection of the tax authorized by RCW 82.14.345(1) must include a finding that the County has met the requirements under subsection(c) of that section. As of December 9, 2025, Jefferson County submitted evidence of Jefferson County Sheriff's Office (JCSO) Policies and Procedures for authorization by the Criminal Justice Training Commission. CJTC subsequently provided conditional verification of our authorization to collect the Public Safety Enhancement tax. 1 A public hearing notice was published in the Port Townsend Leader on December 10 and December 17, 2025. Written public comment was invited beginning on December 10, 2025 and ending on December 22, 2025, at the end of the public hearing, unless extended by the Board. Oral testimony is also invited at the public hearing. ANALYSIS: Passage of the local ordinance puts us on the following schedule for collection of tax revenue. Action Effective April 1,2026 Passage by local government due date Monday, 1/12/2026 75 Calendar days' notice given to DOR Friday, 1/16/2026 Sales Tax effective Date: 4/1/2026 Then DOR and County can start collections for it on April 1 Trickle of collections: 5/31/2026 There will be a very small amount that would come in one month after it starts, but it's due to entities reporting early. Revenue distribution to county: The County will begin receiving funds two months after 6/1/2026 collection starts. DOR will remit a full month of collections on June 30, 2026. 2026 Budgeted Revenue if 0.1% Public Safety Enhancement 59.9% of total 2026 estimated sales tax established-unincorporated county only revenue Expected Amount to be Collected $ 301,596.50 FISCAL IMPACT: Implementing this new sales tax will increase the unincorporated county sales tax rate to 9.5% and bring estimated revenue of$301,596.50 in 2026 to be used to pay for qualifying criminal justice / public safety expenses. This revenue is currently within the 2026 Budget based on Board direction to pursue passage of the ordinance. 2 RECOMMENDATION: Staff recommends approval of the proposed ordinance to effect collection of a new 0.1% sales tax for Public Safety Enhancement purposes in unincorporated Jefferson County, as authorized by state law. REVIEWED BY: - ele5C24,,0 .P-cA Jo D. Peters, County Administrator Dat 3 STATE OF WASHINGTON County of Jefferson In the Matter of Adopting an Ordinance that Approves Local Collection of an Additional Sales and Use Tax of One-tenth of One Percent ORDINANCE NO. as Authorized by RCW 82.14.345 for Public Safety Enhancement to be Codified as Cha ter 3.31 JCC WHEREAS, the Washington State Legislature through its taxing power under Wash. Const. art. I, § 1 authorized Jefferson County to impose a local sales and use tax under RCW 82.14.345(1)(a) for public safety enhancement in unincorporated Jefferson County, provided Jefferson County satisfies the requirements of RCW 82.14.345(1)(c); and, WHEREAS, under RCW 82.14.345(1)(c),Jefferson County may impose the tax for public safety enhancement only if it meets the requirements to receive a grant under RCW 43.101.540, which requires that the Criminal Justice Training Commission (CJTC)to develop criteria; and, WHEREAS, the Criminal Justice Training Commission (CJTC) to has not completed development of the required grant criteria under RCW 43.101.540, but Jefferson County expects to be able to meet the final grant criteria because of the recent accreditation of the Jefferson County Sheriff's Office by the Washington Association of Sheriffs and Police Chiefs(WASPC); and, WHEREAS, a county that has not issued and implemented policies and practices as required under RCW 43.101.540(3) and (4) may not impose the tax authorized under RCW 82.14.345; and, WHEREAS, a county must submit documentation,in a form and manner prescribed by the CJTC, demonstrating that the county meets the requirements of RCW 43.101.540; and, WHEREAS, pursuant to RCW 82.14.345(1)(d), a county that wishes to impose the tax authorized under this section may submit documentation to the CJTC before the CJTC finalizes the form and manner of such submittals and may not be penalized for doing so; and, WHEREAS, on December 4, 2025 the Jefferson County Grants Administrator, with the assistance of the Jefferson County Sheriff's Office, submitted documentation demonstrating that Jefferson County meets the requirements of RCW 43.101.540; before the CJTC finalized the form and manner of a submittal pursuant to RCW 82.14.345(1)(d); and, WHEREAS, based on the preceding "Whereas" clause and as required by RCW 82.14.345(1)(d), the Jefferson County Board of Commissioners finds that Jefferson County has satisfied the requirements of RCW 82.14.345(1)(c); and, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON,AS FOLLOWS: Section 1. Whereas Clauses are Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact supporting this ordinance. Section 2. Purpose. The purpose of this ordinance is to take advantage of the authority to impose a local sales and use tax in unincorporated Jefferson County as authorized by the Washington 1 of 5 Legislature in RCW 82.14.345(1)(a)for public safety enhancement; and, Section 3. Adoption of Chapter 3.31 JCC. Chapter 3.31 JCC, attached as Appendix A, is hereby adopted. Section 4. Severability. If any section, subsection, sentence, clause, phrase or section of this Ordinance or its application to any person or circumstance is held invalid, the remainder of this Ordinance or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 5. SEPA Categorical Exemption. This Ordinance is categorically exempt from the State Environmental Policy Act under WAC 197-11-800 (19). Section 6. Effective Date. This Ordinance shall take effect and be in full force immediately upon the later of passage by the Board of County Commissioners of this Ordinance,and a determination by the CJTC that Jefferson County has satisfied the requirements of RCW 82.14.345(1)(d) and RCW 43.101.540(3)and(4). (SIGNATURES FOLLOW ON THE NEXT PAGE) 2 of 5 ADOPTED this day of ,2025. SEAL: JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS Heidi Eisenhour, Chair Greg Brotherton, Member Heather Dudley-Nollette, Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway,CMC Date Philip C. Hunsucker, Date Chief Civil Deputy Prosecuting Attorney 3 of 5 APPENDIX A 3.31.010 Tax Imposed. (1) Pursuant to RCW 82.14.345, there is hereby imposed a sales or use tax, as the case may be, upon every taxable event, as defined by RCW 82.14.020(8), occurring within the unincorporated portion of Jefferson County. (2) The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. (3) The tax herein levied and imposed shall be additional to any tax imposed or levied under any law or ordinance 3.31.020 Rate of Tax. The rate of the tax imposed by this chapter shall be one-tenth of one percent of the selling price (in the case of a sales tax)or value of the article used(in the case of a use tax). 3.31.030 Use of Funds Limited and Annual Reporting Required. (1) Monies received from the tax imposed under this chapter shall be expended exclusively for criminal justice purposes. "Criminal justice purposes" has the same meaning in this chapter as defined in RCW 82.14.345(5)(a).t (2) Within one calendar year of imposition of the tax under this chapter and annually thereafter, the Jefferson County Auditor shall make a report to either the Washington state association of counties on how the moneys received from the tax were expended. 3.31.040 Administration and collection. (1) The tax levied and imposed herein shall be administered and collected pursuant to the provisions of Chapters 82.03, 82.08, 82.12, 82.14, and 82.32 RCW, and the rules and regulations promulgated by the Department of Revenue pursuant to their authority under those chapters as the same exist or are hereafter amended,and the same are hereby adopted and shall apply with respect As currently defined in 82.14.345(5)(a): "Criminal justice purposes"means activities that substantially assist the criminal justice system,which may include circumstances where ancillary benefit to the civil justice and behavioral health systems occurs,and which includes: (i)Domestic violence services,such as those provided by domestic violence programs,community advocates, and legal advocates,as those terms are defined in RCW 70.123.020; (ii)Staffing adequate public defenders to provide appropriate defense for individuals; (iii)Diversion programs; (iv)Reentry work for inmates; (v) Local government programs that have a reasonable relationship to reducing the numbers of people interacting with the criminal justice system including,but not limited to,reducing homelessness or improving behavioral health; (vi)Community placements for juvenile offenders;and (vii)Community outreach and assistance programs,alternative response programs,and mental health crisis response including,but not limited to,the recovery navigator program. 4 of 5 to the administration and collection of this tax. (2) The Department of Revenue of the state of Washington is hereby authorized as provided in RCW 82.14.050 to collect and administer the tax imposed under this chapter. (3)As required by RCW 82.14.050(1),the chair of the Jefferson County Board of Commissioners is hereby authorized to execute a contract, on behalf of Jefferson County, with the Department of Revenue for the administration and collection of the tax upon the standard form of such contract as provided by the Department of Revenue. (4)The Department of Revenue is hereby empowered,on behalf of Jefferson County,to prescribe such special forms and reporting procedures in the administration and collection of the tax imposed herein as the department may deem necessary. 3.31.050 Consent to inspection of records. Jefferson County hereby consents to the inspection of such records as deemed necessary by the Washington Department of Revenue pursuant to RCW 82.32.110. 3.31.060 Penalty for violation. Any person violating or failing to comply with any of the provisions of this chapter or any rule or regulation adopted in this chapter or by reference in this chapter shall be guilty of a misdemeanor. The penalty shall be in addition to any other penalties provided for in Chapters 82.08 and 82.14 RCW. 5 of 5