Pasco City Council weighs car tab fees versus sales tax to fund road repairs in recent city council meeting

The Brief

• Pasco City Council held a public hearing on creating a transportation benefit district to fund street maintenance through either car tab fees or sales tax

• The district would allow the city to charge up to $20 per vehicle in car tab fees or implement a 0.1% sales tax to raise money for road repairs

• Councilmembers expressed mixed feelings about additional taxes, with some suggesting voters should decide on any sales tax increase

PASCO — The Pasco City Council examined options for funding street maintenance during a public hearing this week, considering the creation of a transportation benefit district as traditional revenue sources continue to decline.

The proposed district would provide the city with two funding mechanisms for street repairs: car tab fees of up to $20 per vehicle or a one-tenth of one percent sales tax increase. City staff explained that conventional funding sources, particularly gas tax revenue, have decreased as vehicles become more fuel-efficient, while street repair costs have risen.

The funding challenge reflects a broader trend affecting municipalities nationwide, where improved vehicle efficiency reduces gas tax collections that traditionally support road maintenance programs.

Council members expressed varying levels of concern about imposing additional financial burdens on residents during a period of persistent inflation.

District 3 Councilmember Leo Perales voiced support for involving voters in the decision-making process, particularly regarding any potential sales tax increase.

“All these taxes and fees and inflation and everything is going up around them, and I do believe if we were going to increase our sales tax—which I would be for—the citizens of Pasco should vote for that,” Perales said.

The council did not reach a final decision during the hearing, agreeing that additional discussion is necessary before moving forward with either funding option.

If council members choose to pursue the sales tax option, the measure could be placed on a future ballot, allowing Pasco voters to make the final determination on whether to approve the additional revenue source for street maintenance.

Transportation benefit districts are special-purpose districts that allow local governments to fund transportation improvements through various revenue mechanisms, including vehicle fees and sales taxes. The districts have become increasingly popular among Washington state municipalities seeking sustainable funding for road maintenance and transportation projects.