Will sales tax or car tabs pay for new Pasco road repair district?
AI-generated summary reviewed by our newsroom.
- Transportation Benefit District created to fund transportation and road repairs.
- Council may raise sales tax by 0.1% to raise about $2.3M yearly.
- Council decision in about five weeks; tax would start six to nine months later.
Less than two weeks after Pasco voters approved a property tax bump to pay for the city’s library services, the Pasco City Council created a new taxing district Tuesday. It could lead to higher sales taxes in the city.
The council voted to establish a Transportation Benefit District, a state-authorized district that’s created to fund transportation improvements within a defined area. It passed 6-1 with Councilman Leo Perales voting no.
Perales said he would only be in favor of sales tax increases for areas such as public safety.
“I’ve been an opponent of increasing the sales tax. I’d rather see us increase sales tax for officers and those types of resources,” he said.
Next, the council will hold a public meeting, and decide the geography of the district and how to fund it.
The council has two options for raising road repair money, a car tab fee or sales tax increase.
At the Feb. 2 regular meeting, a majority of the council preferred increasing sales tax by a one-tenth of a percent to fund the district, which would cover the entire city. The increase would raise $2.3 million for road work each year.
The council would not need to put the decision to a city-wide vote unless they wanted to increase sales tax by more than one-tenth of a percent.
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 Sigdel told the Tri-City Herald Wednesday that it will be at least five weeks until the council will make a decision about raising the city’s sales tax.
Once the council decides on how much to tax, the state must be notified.
The tax increase would go into effect six to nine months after the council’s approval and remains for up to 10 years.
Pasco streets “desperately” need money
Sidgel previously told the council that the city’s street fund “desperately needs” more money.
Revenue for the city’s 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.
Sales taxes across Tri-Cities
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%.
