A bill introduced in the Legislature could add a wrinkle to the issue of annexations.

Sen. Andy Hill who represents the 45th District, which includes north Sammamish, has introduced Senate Bill 6487 which would add language to existing law regarding taxes and annexation. The bill says that if a city would be able to annex an adjacent area without the need of state assistance, it would be able to annex the area.

The original legislation, passed in 2006, allows a city in King, Pierce, and Snohomish counties (except Seattle) to levy a sales tax, to be credited against the state tax, to help it fund services in areas it annexes if it finds that the projected annual costs of providing municipal services in the area is greater than the projected annual general revenue that it expects to receive from that area.

The population in the annexation area must be at least 10,000, which Klahanie and surroundng neighborhoods are.

If the Feb. 11 Klahanie PAA annexation vote is successful, Issaquah could get a sales tax credit of approximately $1.2 million per year from the state as long as the city can prove that expenses are greater than revenue. The tax credit is available for 10 years.

Under Hill’s proposal, a city that needs the least amount of state financial help should be the one to annex the area. Sammamish city Council member Ramiro Valderrama said Sammamish needs no support from the state, since it has $70 million in reserve and no debt.

“That money (the state would save) could go toward education, which is badly needed,” Valderrama said.

Former Issaquah councilmember Dave Kappler concurs, saying the state could save money since one community, Issaquah, needs the subsidy, and the other, Sammamish, does not.

“The state could use that money for schools and state parks — Lake Sammamish State Park,” he said.

Issaquah Mayor Fred Butler said the bill was introduced without the city’s prior knowledge.

“It’s possible it’s directed at the Klahanie annexation,” Butler said. “It’s time for residents to decide their own fate. Our goal is to be a good regional partner to neighboring cities and those in unincorporated King County.”

A hearing on the bill was held in Olympia Feb. 4. Butler, 5th DistrictSen. Mark Mullet and Issaquah City Council president Paul Winterstein all spoke in opposition to the bill.

Sammamish Mayor Tom Vance and councilmember Don Gerend spoke in favor of the bill.

Gerend said they testified in support of saving the state’s general fund and doing the right thing by suggesting that Klahanie be annexed into Sammamish.

Butler said no action was taken at the hearing. He said he didn’t feel that the tax credit was a tool that should be withdrawn at the time ballots are in the mail. He cited several cities that have had successful annexations with the state tax credit, most recently Kirkland.

Sen. Hill could not be reached for comment after several attempts by The Reporter.