PRESS RELEASE
March 2, 2010
Centralia City Councilor Trent calls for lower taxes, not more spending
Amid plans for a giant, taxpayer-funded sports complex which involve big new debt and raiding reserve funds, Centralia City Councilor Matthew Trent proposes a conservative alternative to stimulating local tourism.
Washington State levies a 2% hotel/motel tax that is deductible from sales tax and does not increase total tax. Centralia additionally levies a non-deductible, optional 2% hotel/motel tax that does increase the total consumer lodging tax. The total 4% goes to the city for tourism related activities and nonprofits.
Much of the city funding for the proposed sports complex project will be debt against the city's hotel/motel tax fund.
"My toddler will be an adult before this new debt is paid. Impacts to the general fund aside, spending hotel/motel money on a sports complex will reduce Centralia's funding of local activities and nonprofits and ensure continuance of a tax which discourages tourism. If statutory limits change, we could even see the tax raised."
"From federal bailouts and failed stimulus programs to the tax-and-spend shenanigans of Olympia, people are angry. Private businesses and families have had to tighten their belts. Cutting taxes means people keep more of their hard-earned money, which results in more consumer spending, private capital investment, and business growth."
"The city budget was tight last year, and revenues so far this year look even lower. This is deficit spending at the worst possible time. Instead of new programs and more spending, government must step back to allow the free market, the real source of America's prosperity, to work. My faith is in the fine businesses and individuals of our community."
"Accordingly, I have requested that the Mayor and City Manager have an ordinance drawn up to repeal the city portion of the hotel/motel tax. I hope other council members will join with me to make this a reality."
"Eliminating this optional, additional tax would put Centralia tourism at a competitive advantage without deficit spending or increasing the size of government. It won't solve the world's problems, but it's a start. And it's something our fiscally conservative citizens can agree with."
For more information contact:
Matthew Trent
mtrent (at) cityofcentralia.com
360-520-0746