Half of land bank excise tax is adequate to maintain its properties | Letter

Published 2:02 pm Wednesday, October 26, 2011

I totally support the land bank. It’s presence in San Juan County has enhanced all of our lives and certainly makes San Juan County an amazing place to live.

However, after reviewing the detailed financial information it is clear to me that a .5 percent (i.e. half of present tax) is totally adequate to maintain the current properties. As the land bank director has pointed out, there is money in reserve to adequately pay the current debt. In addition, there are properties that could have permanent conservation easements placed on them with designated building envelopes that could be re-sold to help fund new acquisitions.

I have also encouraged the land bank group to seriously consider requesting our local representatives propose a change in the current RCW’s ruling the Land Bank Excise Tax to allow counties (we are the only one it currently would affect) to exempt all primary residences at or below the “affordable housing” rate. This would have to be written clearly so there would be guidelines (i.e. the ones followed by the local affordable housing groups) that could be followed to determine that amount on an annual basis.

It bothers me a lot that the land bank board and the committee to renew the land bank’s current excise tax rate does not seem to value the San Juan County residents’ contribution to this tax since it has been in place. It is huge.

I am one of those who has consulted on a lot of local real estate transactions since 1990, and I know there are a large number of sellers that have had to either lower their price or actually pay the land bank tax to get their property sale closed. These “sellers” are almost all San Juan County residents. It really would be nice if that was appreciated more by the current land bank board.

Since the current levy does not expire until 2014, I would encourage everyone to vote “No” this time and really give it serious thought and study. We have plenty of time. I don’t know of any entity making financial commitments for the next 15 years at this time. AND we can vote to increase it at any time if the county residents consider that necessary.

Cathaleen Cavanagh

San Juan Island