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News & ArtsFriday, February 22, 2013
Mailbag Bicycle Shop Owner Opposes New Tax on Bicycles
Posted by Dominic Holden on Fri, Feb 22, 2013 at 4:00 PM
I would like to know if someone at The Stranger is working on an article about the $25 bicycle tax that is being proposed by Representative Judy Clibborn. If possible I would like to talk to the person that is writing that article and if not I would like to talk to a reporter who would consider writing such an article. I read the SLOG post by Dominic Holden on the subject and while it addresses some aspects of what this tax would do there are some more specifics that I think are important.
As the owner of a local bicycle shop this proposal concerns me greatly.
My main points of objection are:
1. That it is based on the false premise that the roads, highways and bridges are paid for primarily by gas and motor vehicle taxes. My research has found that the majority of the cost is borne by the general fund that all taxpayers contribute to. If we drove cars instead of bikes it would cost taxpayers more, not less.
2. The tax would be due only on sales from local bicycle stores. People buying bicycles from out of state who are already not paying our 9.5% sales tax would not have to pay this tax either. On a $500 bike this would amount to a total of about 14.5% in taxes that we would have to charge.
Two more reasons from Montlake Bicycle shop owner Neil Wechsler after the jump.
3. When you raise the price of a product sales are certain to go down. Some people will find an untaxed out of state source, some will buy a lower quality bicycle, and some will not buy a bike at all. That will end up meaning less employment in bike shops in our state. (In the last campaign it seemed like every candidate was running on a pro-jobs platform, but actions speak louder than words.)
4. That the tax, which is projected to bring in only $100,000 in revenue per year may well cost the state more than that amount. Creating, collecting, and enforcing another tax don’t happen for free. If you include that some sales would be driven out of state the lost sales tax revenue would pretty much assure that the fee would end up costing the state money. To create the burden of a new tax that earns nothing for the state would be an insult to its citizens.
Neil Wechsler, owner
Montlake Bicycle Shop
The other point is that if this tax only complete bikes, it is even more regressive. Many high end/custom bikes are bought as a frame only, and then built up by a shop or at home. So you are really only about bikes in the 500-1000 range that are sold as a stock model.
This whole thing is just going to be a headache for shop owners.
I would be happy paying a tax on every bicycle related purchase without floor if WSDOT based their budgets on mode share. In doing so, 3% of all road funds would go directly to bicycle facilities, 10% would go to transit, and 15% would go to pedestrian projects. That would still leave like 70% for car and truck stuff. The current budget is 93% for car and truck stuff ($9.3 billion out of $10 billion raised). That doesn't seem right to me.
It wouldn't even have to be intended share as in "we would like to see 20% mode share in bicycles" and spend accordingly. We would just need the funds to meet current demand.
But here's a fun loophole: Bicycles are typically sold without pedals, and without pedals, they are not technically bicycles, but just a collection of bicycle parts, and parts are not covered, even though a set of wheels can amount to many times that threshold.
My take is that this is just Clibborn throwing a carrot in front of Republican legislators so that they can feel as though they are taking one out on the city folk. It does nothing and won't last.
Since when has that ever stopped liberals for imposing costly taxes and regulations?
7
Gee, what whiny taxed-to-the-brink whiners those cyclists are ...
9
13
The problem of course is that these new taxes won't come close to granting bikers the additional services they need - safer right of ways, legal protection from dangerous drivers, or even a fair share of road access. Instead, they will doubtless be used to fund more highways and arterials that bikes will NEVER use, while doing nothing to stop the morons who honk and scream from their driver side window when I dare to claim my legally granted lane of traffic.
Just sell all bikes without a front wheel, as "bicycle parts". Offer the wheel as an accessory.
However, it creates a problem for stand up shops like Montlake vs. bottom feeders. Ultimately, this creates a risk that could put shops into conflict with the State regarding how they conduct business.
The main point is that this further disadvantages local shops vs. the Internet retailers on price.
I commute a couple times/week by bike but I am having trouble getting too worked up on this one.
19
Color me incredulous.
(And, Will, car owners pay a minimum of $43.75 per car per year to register their vehicles. Bike owners every year will have to pay exactly... not one goddamn penny!)
20
Taxing bicycles for road funding is ridiculous.
I agree that the tax is a cheap shot by a shallow legislator who wanted to kick a target not popular with her constituency, that it will do little to enrich state coffers, and that it makes the already difficult business of competing with online retailers still harder. More, it is a totally regressive tax--perhaps it could be a tax on poor people or even a punishment for being poor--and that truly luxurious bikes are effectively exempt.
Nonetheless, I want the state to have more money. The dreadfully underfunded public schools shames me, and you people couldn't abide an income tax, so this is what we get. It's a shame.
Perhaps somebody can finally pass a law by referendum that leads to a nightmarish outcome sufficient to end legislation by referendum. In the meantime, it strengthens the prospects of used bike sales. As a retailer who sells only used and custom bikes, I welcome a greater distinction between cheap new bikes and thoroughly refurbished used bikes.
Nonetheless, the key word here is shame. It's already like being a pariah riding on public streets. Now we can pay a little fee for the privilege.
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