(The Center Square) – Faced with two options — fund transportation spending by implementing a $20 car tab fee or raising taxes — the Pasco City Council signaled a desire Monday to let voters decide next year.
While the topic only came up as a public hearing without a formal vote, officials have discussed implementing a transportation benefit district for months. State law allows municipalities to establish a TBD to raise revenue for transportation infrastructure by approving one of the options outlined above.
Deputy City Manager Richa Sigdel said more than 120 cities have adopted a TBD statewide, including several of Pasco’s neighbors in the Tri-Cities. State law limits the funding source to either a 0.1% sales tax or the $20 vehicle license fee, but the council can increase both over time with voter approval.
“I do believe that if we were going to increase our sales tax, which is something I would be for, the citizens of the city of Pasco should vote for that,” Councilmember Leo Perales said Monday, adding that he’s a hard no on the car tab fee. “The only way I would be for this would be if it was a citywide vote.”
Technically, the council can implement the initial funding source with a simple majority vote. The city only needs voter approval to increase the rate in the future. Anti-tax advocate Tim Eyman testified in September, when they discussed doing so, which sparked a shouting match between him and the dais.
Eyman led several initiatives over the years related to taxes and requiring voter approval to raise the cost of living, but the state struck down a few of them despite passing on the ballot. He previously told The Center Square that he believes the state should require all tax proposals to go out to voters first.
Several council members raised concerns on Monday about mitigating the cost of living without issuing cuts that could affect service levels. Mayor Pro-Tem Charles Grimm said, as a conservative, he always looks for efficiencies first, but cuts can only go so far now, as the city faces a general fund shortfall.
“Staff’s made some great changes along those lines, but in the same way, we are not going to cut or streamline into all the needs around the city,” Grimm said. “This is just a really hard, hard decision.”
Everyone favored the tax over the car tab fee, but the majority expressed a desire for a citywide vote.
City Manager Harold Stewart said if the council put the sales tax up for a vote during the next election in February, it would still be a year and a half to two years before Pasco receives any of that revenue.
The city of Richland, which borders Pasco, has a TBD with a $20 car tab fee in place, but will consider repealing it on Tuesday in favor of a sales tax that everyone would pay instead of just drivers.
“Well, we know we’re against the car tabs,” Pasco Mayor David Milne said Monday. “Right now it seems like we’re all on board for a sales tax, whether it’s done by the council or done by the electorate.”
The council will revisit the topic in the coming weeks as budget deliberations continue ahead of 2026.
