Pasco wants to bump its sales tax to make ‘desperately’ needed road repairs
AI-generated summary reviewed by our newsroom.
- Council plans to vote on 0.1% sales tax bump to fund road repairs, raising $2.3M annually.
- Tax would take effect six months after approval, last up to 10 years, and avoid ballot.
- City cites rising road miles, flat street fund revenue and stretched crews
The Pasco City Council brought back a hotly debated topic Monday night — creating a new taxing district and raising the city’s sales tax to pay for road projects.
The council is expected to vote at its next regular meeting on Feb. 17 to raise the city’s sales tax by one-tenth of a percent to fund a new Transportation Benefit District. The increase will raise $2.3 million for road work each year.
They would not need to put it to a city-wide vote unless they wanted more than one-tenth of a percent.
No one spoke about the issue during Monday’s public hearing, but residents can still provide feedback during the public comment part of the Feb. 17 meeting.
City officials say Pasco is seriously in need of more revenue for its quickly expanding network of roads. And after some strong backlash in September against creating a car tab fee, the city has pivoted toward the sales tax option.
“These are growing pains of a growing city,” Councilman Mark Figueroa said during this week’s meeting. He also acknowledged that higher taxes and fees will disproportionately affect people with fixed and low incomes.
The tax increase would go into effect six months after approval and continues for up to 10 years.
Revenue from sales tax would help maintain city streets, such as repairing potholes, chip sealing, striping and removing snow and ice.
Deputy City Manager Richa Sidgel previously told the council that the city’s street fund “desperately needs” more money.
Revenue for the street fund comes from utility and gas taxes. That revenue has remained the same in the last decade as construction expenses continue to rise.
The city is already relying on other revenue to keep the street fund afloat, including the city’s fund for road overlay.
Meanwhile, the city has expanded by nearly seven square miles since 2016. The number of miles of roads added in Pasco have grown by more than 20% in 10 years, and are up nearly 45% since 2010, said city officials.
Crews are stretched thin. City officials said the number of employees in the street department hasn’t increased for 16 years.
Car tab fees or sales tax
The council has two options for raising road repair money, a car tab fee or sales tax increase.
A car tab fee of up to $50 or a sales tax increase of up to 0.1% would not require voter approval, if the district covers the entire city.
A $20 car tab, for example, would bring in $1.3 million for road projects each year.
The car tab fee would only apply to Pasco residents with cars while the sales tax would affect anyone making a purchase in Pasco. There also are some vehicle exemptions.
That’s why Councilmember Leo Perales wants to move forward with the sales tax option. He’s in favor of asking voters to decide on the issue.
“I’m not in favor of car tabs,” Perales said. “I think if people are coming to come to our city, drive our roads, go to places, buy food and go get groceries, they can contribute to (the road) fund.”
More than 120 cities in Washington state, including Richland, Kennewick, Prosser and Walla Walla, have a Transportation Benefit District.
Kennewick has a 0.1% sales tax that went into effect in April 2025 for its district.
In October, the Richland City Council voted to replace its $20 car tab fee with a one-tenth of a percent sales tax to fund its transportation district for fixing roads.
Sales and property tax revenue in Pasco lags behind Kennewick and Richland, even though the city’s population is likely to surpass Kennewick in the next year. Pasco is hoping the Broadmoor area development will help even the playing field.
Without the new district, road projects would need to be paid for from the city’s already-stretched general fund. The city is currently balancing its budget by spending down its reserves to make up for a multi-million revenue shortfall compared to its expenses.
Pasco currently has the highest sales tax rate in the Tri-Cities at 8.9% after voters approved an increase to pay for an aquatic center in 2022. The $40 million facility is expected to open by this summer.
Pasco’s sales tax will be 9% if the Transportation Benefit District is approved and sales tax increases.
Kennewick’s sales tax is 8.8% and Richland is at 8.7%.
Public tax pushback
Last fall, this issue drew statewide attention from anti-tax activist Tim Eyman, who visited Pasco to speak out against the proposed car tab fees.
The council first discussed the options for a Transportation Benefit District in August.
Eyman’s been at the forefront of the debate since 1999, pushing “$30 Tab” initiatives forward to cap car tab fees at $30 and put an end to transportation benefit districts and other taxes.
“In my view, if voters vote for it, I’m fine with that,” Eyman said. “But if you’re not even asking their permission, that to me is so antithetical to an open government.”
Next chance for public comment
The next regular Pasco City Council meeting is Feb. 17 at 7 p.m. in the council chambers on the first floor of Pasco City Hall at 525 N. 3rd Ave.
To sign up to speak during public comment remotely, you must complete a form on the city’s website. The form must be submitted by 4 p.m. on the day of the meeting.
Council meetings are streamed online on Pasco’s video on demand site, on YouTube at youtube.com/@PascoCityTV and on the city’s Facebook page at facebook.com/CityofPasco.
This story was originally published February 3, 2026 at 5:15 PM.
