Why Is City of Pasco Considering Adding a New Sales Tax?

For a number of years, Pasco has maintained roads using funds from utility and fuel taxes. However, that revenue has been found to be inadequate.

   New Sales Tax Would Be Used for Road

Earlier this year, in February, the City created a Transportation Benefit District, which covers the entire population of 83,000.  The new tax would be administered through this district.

According to the Tri Cities Area Journal of Business, the cost of road maintenance would be about $8 million annually.  City officials said as of now they have about $1 million to maintain roads.

According to the TCAJOB:

"Pasco’s overall sales tax rate currently sits at 8.9%, which includes the state’s 6.5% tax rate and another 2.4% that are locally imposed sales taxes. If approved, the new sales tax would place Pasco’s overall sales tax rate at a flat 9%. By comparison, Kennewick’s and Richland’s overall sales tax rates are each 8.8%, while West Richland is 8.7%."

   The Tax Could be Increased from Initial Level with Voter Approval

If the City chooses to do this, it would take about six months to implement it.  They also said the tax, which would be a 0.1 Percent tax, could be increased by a public vote.

City Officials plan to meet to discuss the matter May 4th, Monday.