PORT ANGELES — A $100 purchase in unincorporated Clallam County will cost 20 cents less when an open-ended sales tax holiday takes effect July 1.

The buyer of a $50,000 car will keep an extra $100 in would-be taxes under a 0.2 percent reduction that commissioners approved Tuesday.

“It’s obviously not going to change anybody’s life, but it might help,” Commissioner Mike Chapman said.

“It might not help. I don’t know. I don’t have the answer. We’re just trying. We’re trying a couple different things.”

Commissioners voted 3-0 to pass a resolution notifying the state Department of Revenue of a reduction in the county’s optional portion of the sales tax from 0.5 percent to 0.3 percent.

As of now, sales tax in Clallam County is 8.7 percent for vehicles and 8.4 percent for everything else.

The new tax rate will be 8.5 percent for automobiles and 8.2 percent for other good and services until further notice.

“Maybe low-income people won’t rush out to the car dealers to buy a car, but maybe those car dealers will employ some people this summer because they’re so busy because people are coming from outside the area,” Chapman said.

“Maybe some salesmen and saleswomen and some of their lot people will get some more hours,” Chapman said.

The county will use reserves to cover an estimated $360,000 loss in revenue over the first six months.

“Our gamble is that the economy will continue to improve and that the revenues will keep up with the rate of inflation,” Chapman said.

The sales tax holiday is part of a multifaceted board initiative to spend down excess reserves in ways that help the economy.

In a series of Monday work sessions, commissioners have discussed potential contracts with nonprofit groups that help the poor and the investment of $1.5 million for sewer replacements in Clallam Bay and Sekiu.

Commissioners also may consider restoring a 40-hour workweek for 37.5-hour county employees to jolt the economy and improve service to the public.

In an expected move, Commissioners Jim McEntire and Bill Peach voted Tuesday — with Chapman abstaining — to approve a $150,000 contract with the Clallam County Economic Development Council for business recruitment and retention.

The board had previously voted to spend that amount for economic development.

“If you’re going to help the employees, you’re going to help social service agencies and you’re going to try to make some money available for economic development, does it really hurt to help the overall taxpayer, even if it’s somewhat symbolic?” Chapman asked.

“They’re the ones who fund all of this.”

Clallam County had about $12.3 million in general fund reserve heading into the year, with $9.1 million restricted.

Stan Creasey, chief accountant in the county Auditor’s Office, told commissioners that the plan to spend as much as $2.5 million in reserves conflicts with the dire financial outlook in the 2015 budget message.

The commissioners’ spending plan would reduce the general fund balance to perhaps $9.5 million by the end of the year and could result in a $1.8 million deficit for 2016, Creasey said.

Spending down reserves would put the general fund “back into a position of financial panic” that could be exacerbated by another recession, he added.

Creasey questioned whether the board initiatives would have a measurable effect on the economically distressed.

“Very few of these people are buying new cars or flushing toilets in Clallam Bay,” he said.

Chapman told Creasey that the board is “trying something different” after years of raising taxes and holding money in the bank.

Unemployment remains above 10 percent, and wage growth has been stagnant, Chapman said.

“We’ve raised and raised and raised [taxes] every year,” he said.

“I think the public’s at a breaking point. I think the public is just saying, ‘Gosh, give us a break.’”

Chapman, a 15-year commissioner, announced last month that he won’t seek a fifth four-year term in the 2016 election.

“The status quo isn’t working,” he said.

“I actually applaud that we have a board that for the first time in a long time, the economy is the No. 1 topic. For years, we’ve been bogged down on land use and shorelines and master plans.

“It’s been a breath of fresh air to talk about the economy,” Chapman added.

“Now we get to be criticized for our answers. That’s part of the deal. . . . We’re trying our best. At least we’re talking about it.”

McEntire said debate is “very healthy” as the board works to develop concrete budget guidance to County Administrator Jim Jones.

“I, for one, welcome that discussion,” McEntire said.

“In my personal view, we need to think about managing the margin a little bit more closely in the general fund, especially, but that discussion will continue. We’ll get to a conclusion at some point, but input is welcome and helpful.”

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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rollikainen@peninsuladailynews.com.