Pasco council signals support for state 'TUA' industrial tax‑exemption program after Richland success

Deputy City Manager Haley Sigdell and guest speakers from Richland, Benton County and the Port of Pasco described Washington’s Targeted Urban Area (TUA) program, a state‑authorized 10‑year property‑tax exemption targeted at new manufacturing that meets strict thresholds (minimum 25 jobs at livable wages, 10,000 sq ft new construction, at least $800,000 of new value).

Richland economic staff and Port representatives said the program helped land significant projects — including a large fertilizer plant — that likely would not have located in Washington without the exemption. They said the program can level the playing field against incentive‑heavy states and noted Richland’s experience of four approved projects, with ATI the first completed applicant. The Port urged broad inclusion of industrial land in any TUA map to maximize competitiveness.

Franklin County’s assessor explained administrative challenges: current property‑tax software and workflows do not natively support the partial exemption (exempting manufacturing area while still taxing office space and land), so counties typically need custom administrative workarounds, special taxing districts or parcel segmentation to implement TUA reservations. That increases staff workload and may require city assistance with software or administrative resources. The assessor recommended coordinating city and county boundaries and implementation details to simplify administration.

Council members expressed general support for staff to pursue a TUA boundary map and to coordinate with Franklin County and the Port; staff will return with a proposed boundary, county coordination and the required legal steps if council directs staff to proceed.