Transportation Benefit District Action on May 4 City Council Meeting Agenda

​The Pasco City Council is scheduled to consider imposing a new, 0.1% sales and use tax at the May 4, 2026 Regular Meeting. This tax would be imposed within the bounds of the Transportation Benefit District (which encompasses the entire city) and revenue from the tax would be dedicated to Pasco’s Street Fund.
 
The Street Fund pays for people, equipment, and materials needed to maintain City roads. In the past, this fund has relied on utility taxes and fuel taxes.  However, those sources are no longer enough. As one example, it would cost around $8 million per year for pavement preservation work to keep Pasco’s roads in good condition. Right now, the City budget has about $1 million per year to pay for pavement preservation.  
 
Washington State allows for the creation of a Transportation Benefit District, or TBD, to fund transportation investments within a defined area. Funding can come from an annual vehicle licensing fee, starting at $20 per vehicle, or from a sales tax of 0.1%. A higher sales tax may be enacted with voter approval.
 
On February 17, 2026, the Pasco City Council established a Transportation Benefit District that covers the entire city. On April 20, the Council assumed the powers of the district so that they could take action for the TBD as part of regular City business.
 
On May 4, the City Council will consider imposing a 0.1% sales tax on purchases made within the boundaries of the Pasco TBD. If approved, it will likely take at least six months for the tax to be implemented.