Should Washington state split into two states? (Seattle, Spokane: 2015, health insurance)

[CrazyDonkey]

Eastern Washingtonians want credit for taxes they pay in western Washington -- if they split into a new state, they'd still be paying those taxes, but with no claim on the revenues.

[509]

Originally Posted by CrazyDonkey

Eastern Washingtonians want credit for taxes they pay in western Washington -- if they split into a new state, they'd still be paying those taxes, but with no claim on the revenues.

Say what??

About five years ago, the county portion sales tax on internet sales in Washington state went back to the county where the purchase was made. Previously, western Washington businesses sent that money to King County in most cases.

If Washington were split in two......western Washington businesses would have to remit the ENTIRE sales tax to eastern Washington.

[Seacove]

Originally Posted by 509

Say what??

About five years ago, the county portion sales tax on internet sales in Washington state went back to the county where the purchase was made. Previously, western Washington businesses sent that money to King County in most cases.

If Washington were split in two......western Washington businesses would have to remit the ENTIRE sales tax to eastern Washington.

The ENTIRE? The population of Western Washington is about 5.2 million. The population of Eastern Washington is about 1.5 million and that's being generous with the lines. I'm all for splitting but it's not like Eastern Washington is generating this massive amount of internet taxes. The state budget probably has it broken out by county, it would be interesting to see. Are they paying for their own schools or is that coming out of the state budget? Roads? Infrastructure? I'm sure this is broken down somewhere and it seems not that long ago someone posted the breakdown.

[509]

For purchases made from eastern Washington state. The other change is the sales tax on vehicles would have to be paid in eastern Washington if the state were split in two.

That is why I buy my vehicles in Idaho. Sales tax goes to Chelan County.

[PS90]

Originally Posted by CrazyDonkey

Eastern Washingtonians want credit for taxes they pay in western Washington -- if they split into a new state, they'd still be paying those taxes, but with no claim on the revenues.

Originally Posted by Seacove

The ENTIRE? The population of Western Washington is about 5.2 million. The population of Eastern Washington is about 1.5 million and that's being generous with the lines. I'm all for splitting but it's not like Eastern Washington is generating this massive amount of internet taxes. The state budget probably has it broken out by county, it would be interesting to see. Are they paying for their own schools or is that coming out of the state budget? Roads? Infrastructure? I'm sure this is broken down somewhere and it seems not that long ago someone posted the breakdown.

Again, what difference does it make? Montana and Wyoming have decent infrastructure without a huge metro hub to draw taxes from. There is plenty of precedent in this country for a low population state to survive just fine without a big city.

Plus, if sales tax was allocated to the county that it was spent in, Eastern WA would still benefit from Western WA for the simple fact that we would still be stuck being Western WA's playground. If the states separated, then at least we would use that tourism income as we wanted to.

[CrazyDonkey]

Originally Posted by 509

Say what??

About five years ago, the county portion sales tax on internet sales in Washington state went back to the county where the purchase was made. Previously, western Washington businesses sent that money to King County in most cases.

If Washington were split in two......western Washington businesses would have to remit the ENTIRE sales tax to eastern Washington.

I'm not taking about Internet sales...

So, a tourist visiting Seattle would get a rebate check for any local sales taxes paid sent to their home county? I doubt that.

[509]

For transportation spending in the state....all data from the Washington Department of Transportation for 2013 year period with current gas taxes.

eastern Washington generates 80.366 million in local, state, and federal transportation tax revenues and 60.995 million is spent in eastern Washington.

By WADOT region the ratio of expenditures/revenues:

North-central Washington....... .76
South-central Washington...... .92
Far eastern Washington......... .46

western Washington generates 371.269 million in local, state, and federal transportion tax revenues and 390.640 million is spent in western Washington.

By WADOT region the ratio of expenditures/revenues:

Northwest Washington........ 1.12
Olympia Region................. .88
Southwest Washington....... .98

Based strictly on population eastern Washington should receive 112 million in transportation spending in the state. Almost double what it currently receives. I think most of us would settle for what we pay in transportation taxes.

But it does bring up the point that we really need to toll the cross-Cascade highways to tax western Washington drivers that travel in eastern Washington.

The Washington Department of Transportation did a study that would impose a $20 toll to cross the Cascades. The one-way toll would affect half of the 41,700 vehicles that cross the passes every day.

If eastern Washington were a separate state and imposed tolls on the passes, well run the numbers. It would go a long, long way to running the entire transportation system in eastern Washington.

There is no reason why eastern Washington would be worse off if the state were split in two.

[509]

Originally Posted by CrazyDonkey

I'm not taking about Internet sales...

So, a tourist visiting Seattle would get a rebate check for any local sales taxes paid sent to their home county? I doubt that.

Nobody does that anymore.

The only people that I know did it for awhile were the Canadians and Europeans for people traveling in their countries.

Where did this come up?

[Seacove]

Does Eastern Washington pay for its own education? Does the McCleary decision result in Western Washington funding Eastern Washington schools?

[509]

Originally Posted by Seacove

Does Eastern Washington pay for its own education? Does the McCleary decision result in Western Washington funding Eastern Washington schools?

Not sure.

For years the state of Washington funded the "rich" school districts at a higher level than poor school districts since they had higher costs.

I looked at the costs for McCleary and it is a mixed bag. As near as I can tell those school districts that "overpayed" for school levies for will get a property tax reduction. Those school districts that "underpayed" with local levies will pay more in state taxes.

The wealthy districts like Seattle and Mercer Island had such high property values that their "levies" were much, much less than poorer districts that had to raise levies to higher levels to get education funding to "proper" levels.

I have two homes. One in the Wenatchee School District. My taxes will go down once the state of Washington starts fully funding basic education. Relative to its tax base, Wenatchee local levy tax is greater than the state rate.

The other home is in the Cascade School District (Leavenworth) there the local property tax levy is less than the state of Washington tax rate so my taxes will go up there. That home is a business so at least it will be deductible.

I looked at the districts east of the Cascades. Those that had good schools tended to "overpay" for their levies. Their tax rates are going to go down.

Not sure how all of this will play out.

But the lawsuit was filed by a western Washington resident. The lawsuit was approved by a State Supreme Court that was bought by the teachers unions based in western Washington.

I have a "political" friend. His job was politics. He just laughed at the McCleary lawsuit since he thought eastern Washington would be the prime benefit from the tax shift from local to state levies. I am not sure he is right...but we will see.

There are a lot of other issues going on. Western Washington isn't very diverse or have that many "poor" people relative to eastern Washington. For example, city of Seattle got the legislature to approve additional funding for poor minority students. My "political" friend said the Seattle School District asked where the "money" was for the bill they got passed through the Legislature. They were told ALL the funding went to eastern Washington.