No new taxes, but plenty of fees

The Seattle Times takes note on its Politics Northwest blog that even though the state Legislature did not raise taxes this year, it did hike many fees.

Education bore the brunt of the increases, but people in other sectors will see fee hikes, too, including plumbers, electricians and funeral home operators.

Washington state isn't the only government looking to generate revenue through increased fees. The New York Times reported recently that cities are increasingly turning to fees instead of taxes to plug budget gaps, as well. One Florida city has even begun billing accident victims for police and fire response. The article notes:

Politicians tend to regard fees as more palatable than taxes, and more focused too. If a state needs to finance an infrastructure to oversee fishing, why shouldn’t fishermen foot the bill? But groups like the nonpartisan Tax Foundation in Washington worry that governments are now using fees to shore up budget shortfalls rather than cover specific costs incurred by specific users.

Amber Carter, government affairs director on tax and fiscal issues for the Association of Washington Business, said there needs to be a nexus between a fee and the activity it supports, as well as accountability for how the money that it generates gets spent. In some cases, business owners may support fees, Carter said. "But that does not take away from the pile-on effect," Carter said.