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CITY OF EVERETT FISCAL ANNEXATION ANALYSIS: EXECUTIVE SUMMARY <br /> SALES TAX CREDIT <br /> Since Everett is located in a county with a population of more than 600,000, the City would qualify for <br /> the State sales and use tax credit. Scenario 3 (including Eastmont, Hilton Lake, and Rugg's Lake) is <br /> estimated to contain approximately 10,500 people, over the 10,000 person limit to qualify for 0.1% <br /> sales tax credit. Scenario 4 (including all areas in Scenario 3 plus Larimer) contains approximately <br /> 20,800 people, over the 20,000 limit to qualify for the 0.2% credit. <br /> The statute allows the City to recoup the loss due to annexation up to the maximum 0.10/0 or 0.2% of <br /> sales tax revenues. However, considering Everett's large sales tax base, estimates show that in both <br /> Scenarios 3 and 4, the City would not be taking advantage of the full possible credit in any year (as <br /> City losses are estimated to be less than the potential credit). Exhibit ES-3 shows the estimate of <br /> the maximum state sales tax credit available for both scenarios and the portion that is estimated to be <br /> used during the ten-year transition period. <br /> Exhibit ES-3 <br /> Scenario 3: Sales Tax Credit <br /> 12,000,000 <br /> 10 Available Credit <br /> IN Credit Used <br /> 10,000,000 <br /> 8,000,000 <br /> 6,000,000 <br /> 4,000,000II <br /> ® 3 , <br /> 2,000,000 <br /> IiLITUI <br /> 0 <br /> 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 <br /> Final Report:October 2008 Page ES-5 <br />