Pasco council delays vote on sales tax bump for road projects
Pasco will wait a little longer to decide on a sales tax bump to pay for much-needed road work.
The Pasco City Council decided to hold off on voting Monday to increase its sales tax by 0.1 cents to generate $2.3 million annually for its street fund. That equals 10 cents on every $100 purchase.
With two council members not in attendance, Mayor Charles Grimm suggested tabling the vote until all seven members were present.
It’s unclear when the vote will be taken back up, but it is not likely to be next week with Grimm and City Manager Harold Stewart due to be out of town for a conference.
The debate saw initial fierce opposition from Pasco residents and anti-tax activist Tim Eyman, but simmered down after the council began moving away from controversial car tab fees to pay for the road work funds.
No members of the public spoke at Monday’s meeting in favor or opposition.
If approved, the sales tax increase would take six to nine months to go into effect. Shoppers will notice it on their purchases in early 2027.
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 council voted unanimously to roll its new Transportation Benefit District, established in February, into the city’s regular functions last month. That opened the door to this week’s vote.
Why a new sales tax?
The city had 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.
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%
