Chelan County’s offer to pay the Chelan-Douglas Regional Port Authority $1.5 million annually for 25 years in exchange for dropping its proposed tax increment area (TIA) in Malaga has been rejected.

The Port Authority responded with a letter declining the county’s proposal and suggesting that commissioners and other local taxing districts raise taxes instead to offset potential revenue losses caused by the TIA.

READ MORE: Chelan County Freezes TIF Plan Near Fusion, Microsoft Sites

Background: What Is the Malaga TIA?

“As you may be aware, the Washington State Department of Revenue recently issued a policy guidance on July 16, 2025, interpreting RCW 84.55.010 as allowing impacted taxing districts to adjust their levy rates to recoup increment revenue otherwise diverted into a TIA,” t

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