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Kent official urges state, federal help after e‑commerce shifts $18–$20 million in sales tax
Summary
Kent Mayer Dana Rauf said a 2009 Washington law that directs sales tax to delivery destinations has cost the city roughly $18–$20 million and increased truck traffic; a state bill to replace some lost revenue recently moved out of committee.
Kent Mayer Dana Rauf, Transportation Committee Vice Chair for New Economies, said Kent has lost an estimated $18 million to $20 million in sales-tax revenue after a 2009 Washington law redirected sales taxes to the destination of delivered goods and called for state and federal action to help cities pay for road maintenance.
Rauf said the shift in where people buy goods — ordering online and having items delivered — concentrates truck traffic near warehouses in the Industrial Valley and increases wear on neighborhood streets. "For Kent, that means a significant amount of truck traffic in the valley, which is really hard on our roads," Rauf said.
The change in state law, enacted in February 2009, moved the sales-tax receipts for many online purchases from the warehouse location to the purchaser's delivery location. Rauf told listeners that change reduced Kent's tax base and that local officials have been seeking legislative remedies. He estimated the modern-day revenue loss to Kent at "somewhere around 18 to $20,000,000." The precise statutory citation for the 2009 change was not provided in the update.
Rauf said he discussed the issue with U.S. Rep. Rick Larsen, whom he described as the ranking member of the House Transportation Committee, about ways to get federal dollars to cities directly rather than routed through states or other entities. Rauf and others including Council President Corr, the Port of Seattle and Fred Meyer testified this legislative session on a bill intended to replace some of the lost sales-tax revenue; Representative Chris Stearns is the bill's prime sponsor. Rauf said the bill "moved out of committee," which he described as an early but positive step; no vote tally or bill number was provided.
Rauf framed the effort as part of his role representing cities' interests on the Transportation Committee for New Economies at the U.S. Conference of Mayors. He said the committee is focusing on how the rise of e-commerce affects local infrastructure and municipal budgets.
Rauf cautioned that the legislation remains at an early stage and did not specify timelines, appropriation amounts, or procedural next steps. He said local officials will continue to press state and federal representatives for funding directed to cities to cover road repairs and other impacts from increased delivery traffic.
