Council nears vote on upping sales tax for fixing Pasco streets
AI-generated summary reviewed by our newsroom.
- Council voted to roll new Transportation Benefit District into city functions
- Council will consider a 0.1 percent sales tax increase in early May
- If approved May 4, the sales tax would raise Pasco’s rate to 9 percent
The city of Pasco has cleared the final hurdle on its way to increasing sales tax to help pay for road repairs.
Despite initial fierce opposition from Pasco residents and anti-tax activist Tim Eyman, no residents sounded off Monday during a public hearing at the council’s regular meeting.
The council voted unanimously to roll the new Transportation Benefit District into the city’s regular functions. That opens the door to a vote on how to pay for it. They established the district in February.
The city council will consider voting on increasing its sales tax by 0.1 cents to generate $2.3 million for its street fund in early May. That equals 10 cents on every $100 purchase.
That fund had a $600,000 deficit under the city’s 2025-26 budget.
The extra revenue will help pay for pothole repairs and crack sealing, striping and traffic safety markings, ice and snow removal and projects such as roundabouts.
The city has been leaning toward a sales tax increase rather than charging car tab fees because the sales tax would mean everyone shopping in Pasco and using its roads would help pay for it.
Richland recently voted to swap its car tab fee for a sales tax, noting the same concerns. Kennewick established a similar sales tax in 2024.
The council can approve a sales tax increase of one-tenth of a percent without needing voter approval. If they adopt a car tab fee, it would start at $20, but can be raised to $40 in two years and $50 in four years. At $20 the tabs would raise an estimated $1.3 million annually.
If the council approves the sales tax increase at its May 4 meeting, it will take six to nine months to go into effect. Shoppers will notice it on their purchases in early 2027.
Staff said the city’s street crew has remained the same size since 2010 despite the number of road miles growing by 43% in that same time period.
Pasco already 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. It will go to 9% if the council approves the increase on May 4.
Kennewick’s sales tax is 8.8%, and Richland is at 8.7%
