Townsfolk take on role as activists

La Conner Mayor Ramon Hayes has launched a town lobbying effort to address a situation that has left a fraction of the taxpayers shouldering the lion’s share of the local taxes.

In January 931 parcels were removed from the La Conner area property tax rolls following a federal court ruling that structures on Indian reservation land are tax exempt regardless of who owns the structures.

That means homeowners in Shelter Bay and in the Pull and Be Damned Road area who built their homes on land leased from the Swinomish Indian Tribal Community no longer pay into the school district, library district, fire district and six other agencies supported by the personal property taxes levied by the county and state on the value of their buildings.

Taxes were shifted to the remaining taxpayers, some of whom saw their bills jump by nearly 25 percent.

The biggest issue is the school taxes — about two-thirds of the La Conner School District’s enrollment comes from the tax-exempt reservation land. And this comes after voters in the school district in 2013 passed a $20 million school bond, which becomes the responsibility for the remaining taxpayers to pay.

“This is a financial issue created on the federal level,” Hayes said. “It requires our community as a whole to find solutions. Through this process, it’s critical we do everything we can to maintain friendships and strong alliances in this community.”

At last week’s Town Council meeting, Councilman Jacques Brunisholz agreed that since that the problem originated “outside this community,” the solution should come from outside, as well.

And a lobbying effort targeting state and federal lawmakers is exactly what Hayes has organized. The goal, he said, is to obtain state or federal funding for tax relief for residents stuck with the bills and also to make sure other local entities, like the La Conner Library, which was unable to raise taxes to make up for the revenue loss, can stay afloat.

Last Thursday Councilman Bill Stokes traveled to Olympia and stopped in to see each of the state’s 10th Legislative District lawmakers to talk about the situation.

Senator Barbara Bailey, R-Oak Harbor, said that even though the tax disparity is a federal issue, she would check with Attorney General Bob Ferguson’s office to explore legal options. Rep. Norma Smith, R-Clinton and Rep. Dave Hayes, R-Camano Island, both said they would search for ways to help ease the tax burden. Also, Smith said she would schedule a meeting with state Superintendent of Public Instruction Randy Dorn, because she believes the funding uncertainty in La Conner schools means “kids are at risk,” she said.

Hayes said the federal lawmakers will also be called on. He’s already contacted U.S. Rep. Rick Larsen, D-Everett, who introduced legislation that would make permanent the federal “impact” aid for school districts that serve children on untaxed land. That bill also stipulates that the government can’t be more than three years late in payment.

La Conner schools already receive federal funds for the children on lands not on the tax rolls. However, Superintendent Tim Bruce has said the money accounts for only a fraction of what it costs to serve the kids, and the amount has been dropping each year.

“The La Conner area has been impacted more than any other school district in the country based on this federal decision,” Hayes said. Lawmakers, he said, need to know that the area has unique challenges that must be addressed.