(The Center Square) – The Bellevue City Council passed an ordinance establishing a transportation tax district as a tool the city could utilize to send generated revenue to transportation maintenance projects.
The city considered the tax district as a result of increased traffic injuries in 2022. Approximately 29 people were seriously injured and two were killed on Bellevue city streets last year, according to a city memo. This compares to 25 serious injuries and one person killed in crashes on Bellevue city streets in 2021.
Bellevue’s budget for streets and signal maintenance was reduced in the 2021-2022 budget by $1.7 million and $1.8 million, respectively. The city stated that budget cuts continued in the 2023-2024 fiscal year budget due to competing needs.
The Center Square previously reported that the creation of a Transportation Benefit District would allow the base maintenance budget to be restored to $2.0 million in 2024 and address maintenance needs for new infrastructure added in the city with $1 million in 2024.
Bellevue Mayor Lynne Robinson emphasized in the city council meeting on July 17 that the legislation does not mean the city will use the tool, or show how much money the district would raise and spend on.
“It’s just saying that this is a tool we want to have available to us and if we decide that we want to activate it, then we will begin discussions on all those things,” Robinson said in the city council meeting.
The transportation benefit tax district could collect revenue from a few sources. One is through vehicle fees. In the first year, $20 annual car tab fee can be collected and raised to $40 per vehicle annually after two years and up to a maximum of $50 after the fourth year of the district. This has the potential to raise approximately $5 million if raised to the $50 per vehicle, according to the city.
The City of Bellevue could also impose fees on the construction of commercial buildings or on land development, as well as implement a sales tax of up to 0.1%, which would raise approximately $10 million per year, according to city data.
An 0.1% increase would raise the city’s sales tax rate to 10.2%. Other cities at or above this rate include Auburn, Kirkland, Lake Forest Park, Seattle and Shoreline.
The next steps for the council are to consider and adopt an ordinance that updates the transportation benefit district code to include assumption of the district tax. The bill could be adopted sometime later this fall.
The transportation benefit tax district would likely remain in place indefinitely unless terminated by the council.
