Council directs staff to draft ordinance replacing $20 car-tab fee with 0.1% sales tax for transportation district

City Manager John Amundsen told the Richland City Council on Sept. 16 that he recommends replacing the city—s $20 annual vehicle registration fee with a 0.1% local sales tax dedicated to the Transportation Benefit District to better fund pavement preservation.

Amundsen said the city maintains about 650 center lane miles and targets a pavement condition index (PCI) of about 70—6 to 75. He told council that reaching and sustaining that PCI requires roughly $4 million annually and that the current $20 car-tab fee produces about $1 million a year, leaving the city to fill the gap with general fund transfers, real estate excise tax (REET) and periodic reserve drawdowns.

The city manager said a 0.1% sales tax ("one-tenth of one percent," about 1cent on $10) would generate an estimated $2.25 million annually based on historical sales-tax performance and would capture spending by visitors and commuters as well as residents. "This broadens the payer base to commuters and visitors, provides higher dedicated revenue, aligns better with growth,…