RICHLAND, Wash. – The City of Richland is considering a major change in how they fund the Transportation Benefit District (TBD).
City Manager Jon Amundson delivered a presentation to the city council September 16 with a recommendation to eliminate the current $20 per vehicle car tab fee and replace it with a 0.1% sales tax.
Currently, the car tab fee generates about $1 million annually, but maintaining the city’s pavement condition index (PCI) benchmark requires approximately $4 million each year. This shortfall has led to reliance on the General Fund, Real Estate Excise Tax (REET) and reserves, Amundson said.
Amundson further said the proposed 0.1% sales tax could more than double TBD revenue, generating an estimated $2.25 million annually based on 2024 taxable sales. This would ease the financial burden on Richland residents and provide a stable revenue stream, according to Amundson.
A sales tax model would offer several advantages. It captures contributions from commuters, tourists and other non-residents who use Richland’s transportation infrastructure. It also grows with population and retail activity, reducing pressure on other funds like the General Fund and REET.
The city council is expected to direct staff to draft an ordinance to replace the vehicle fee with a sales tax.
For more detailed information, residents can refer to the Transportation Benefit District Funding Alternative Presentation.
