Tax Delay Threatens Seattle's First Great Paving Program
A new revenue law lets property owners postpone half their taxes until November, and the road fund is so short that the city may stop accepting new street-improvement petitions.
So has fallen the payment of city taxes that the joint finance committee of the city council contemplates a proposition at the next meeting of the council to temporarily suspend preliminary work on street improvements which have been petitioned for by property owners until there is sufficient money in the road fund to permit the work to be resumed. This will not apply to improvements which have already been authorized or those in progress, but simply those which have been petitioned for and which are now in the hands of the board of public works or the city engineer.
When the tax levy for this year's work was made by the council, a large sum was figured on to be placed in the road fund and to be expended only for the city's portion of public improvements, including sewers and streets. Of that amount only about 4 per cent has been collected, and the chances are that but little more will be turned over from the county treasurer to the city for some months to come. The city has already caused public improvements to be made or authorized which will eat up the money now on hand for the purpose, and consequently the finance committee will advise the council that it will be unwise and contrary to the policy pursued by the present administration to order or authorize further improvements until taxes are paid to warrant it.
The falling off in the amount of taxes paid into the county treasury this year in comparison with last year is very large, and it is generally recognized that the law passed by the legislature extending the time for payment is largely responsible for it. Under the old law taxes became delinquent in April, but the new law says that if one-half of the tax is paid before May 31 the remaining one-half will not fall due until November 30. In case one-half of the tax is not paid before May 31 the entire tax becomes due, and if the necessary payment is made before May 31 and the balance is not paid before November 30 the delinquency on this balance dates back to May 31. Thus far a large majority of the property owners have not made any payments whatsoever, and it is a very serious question whether they will do so before May 31 or allow the entire tax to become delinquent. During the week ending March 18 this year, city tax collections were only a small fraction of the corresponding week last year, which gives one an idea of the falling off in payments.
If the city council adopts the proposition which the finance committee contemplated suggesting, it will altogether depend on how fast taxes come in when the city will tell property owners who desire street improvements to come forward with their petitions. The city has already made many extensive street improvements this year and authorized many more. The Pike Street improvement, the most important ever authorized by the city, will take nearly $5,000 out of the fund to pay the city's portion of the cost, but in return the administration will give to Seattle the first long piece of permanent paving in its history.
Among the other improvements which are under construction or which have been authorized, and which will eat up about all of the money now in the general road fund for the payment of the city's portion, are the Hyde Street sewer, completed; the East Street contract, let and awaiting sale of bonds; Lewis Street from Yesler Avenue to the north line of Walla Walla addition; Bush Street from Jackson to Day; Madison and Filbert sewer work; Willow Street from Broadway to Kinney; Remley Street from Remington Avenue to Madison; Harrison Street in Brooklyn addition; and Lincoln Street from Depot to Orange, not yet awarded. Petitions for Taylor, Francis, Arthur and Sherbrook streets were also on file and likely to lay over for a time.
“The Pike Street improvement, the most important ever authorized by the city, will take nearly $5,000 out of the fund to pay the city's portion of the cost, but in return the administration will give to Seattle the first long piece of permanent paving in its history.”
The 1895 fight over when taxes arrive and which street projects proceed is an early version of Seattle's perennial argument over growth, taxation and who pays for the infrastructure boom. The new law pushed half the tax bill to November, and the city's response was to stop taking new petitions—a budget maneuver familiar to anyone who has watched a capital plan slip.
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