The Spokane WA City Council introduced legislation Monday that would charge billboard owners a new $250 annual fee and dedicate the proceeds toward graffiti and blight remediation efforts on public property. The annual fee would apply to any billboard or off-premises sign measuring at least 9 square feet. The proposal would adjust the city’s sign code to increase the one-time $75 permit fee to an annual $250 permit fee, per face, for billboards as reported by the Spokesman Review.

“The principle behind it is that off-site signs, which we call billboards, create some visual blight,” Council President Breean Beggs said on Monday. Paying a “minimal amount” every year “seems to be a tight connection and promotes general community well-being,” he added.

The proposed legislation had not yet received comments from the public, billboard owners or the business owners who advertise on the signs to promote their businesses.

Insider’s Take:  Whatever you want to call it, and the same as we are seeing in other cities (like Cincinnati and Baltimore), this proposed fee is a tax. In the case of the Spokane proposal, a much more regressive one.  Insider spoke with a GM in the market and his concern is that if it is a per face fee, it could amount to as much as 5% of his annual revenue in the city, assuming 80% occupancy on their faces,

This is another example of a city, looking for revenue to meet growing budget needs rather than being fiscally responsible.  Why they decided to single out the Outdoor industry to provide funds to remove graffiti around the city is baffling.  Currently, the city does not allow digital signs.  If they want to reduce the number of signs, how about an exchange program allowing for new digitals for a trade in of static faces?

Lamar is the local market leader and they will be digging in their heels on this one.  We will keep you posted as we learn more.

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