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Pasco creates Transportation Benefit District to address road funding shortfall
Summary
Council established a Transportation Benefit District and a new Pasco TBD chapter in municipal code; staff will pursue next steps to define revenue options (0.1% sales tax or vehicle license fees) and timelines with state agencies.
The Pasco City Council voted unanimously to create a Transportation Benefit District (TBD), adopting ordinance language to add chapter 3.27 to the municipal code.
Deputy City Manager presented revenue options and projections: a $20 vehicle license fee (car tab) was projected as producing roughly $1.3 million annually at the city vehicle counts; a 0.1% sales tax could raise about $2.3 million. Council members debated fairness and regressivity, whether to put a sales‑tax increase to voters or adopt it councilmanically, and timing for state filings. Several council members said they favor the 0.1% sales‑tax option; others expressed concerns about the distributional impact of sales tax versus car‑tab fees.
Council adopted the ordinance creating the TBD; staff said subsequent steps will include defining the district geography (citywide), specifying which revenue option or combination to pursue, and coordinating with the Washington State Department of Revenue and other state agencies for implementation timelines. Staff warned the full implementation and revenue collection could take 6–9 months or longer because of state processes.
Next steps: staff to return with a timeline and proposed revenue mechanism and discuss whether to put any tax measure before voters.
Sources: deputy city manager presentation and council roll call vote at the Feb. 17 meeting.
