(The Center Square) – Seattle would have one of the highest combined state and local sales tax rates in the U.S under a plan announced by Mayor Katie Wilson to double the city tax funding public transit in the city.
Wilson’s proposal Tuesday night comes as city residents are already facing higher taxes. Property owners will be asked to approve a referendum in November more than doubling taxes to fund the city libraries at $193 a year, based on a median house value of $872,000.
The Seattle City Council is also considering a bond issue that could be more than $2 billion to renovate the Seattle Center, home of the 1962 World’s Fair.
That bond issue could also be on the ballot in November.
The current 0.15% city sales tax helping fund public transit expires at the end of 2026.
Wilson wants to raise the tax to 0.30%, raising total state and local taxes in Seattle to 10.70%.
The combined tax rate is now made up of the 6.5% Washington state tax plus 4.05% in local and county taxes.
The increase would push local and county taxes up to 4.20%
Two communities in Western Washington, Edmonds and Lynnwood already charge a combined tax rate of 10.70%.
The combined rate in Seattle is now 10.55%.
Nationwide, there are several communities that charge higher tax rates.
Lafayette in Louisiana is one community that charges more, a combined 11% in state and local taxes.
Seattle voters passed the expiring transportation measure in 2020 by a more than a 80% margin. That vote increased the city’s transit sales tax from 0.1% to 0.15%
The new tax measure would fund 280,000 King County Metro bus trips a year and 22,000 free ORCA transit passes for qualified lower-income residents over the next ten years, Wilson said in a statement.
Seattle does not run its own bus system, but funding would go to two city streetcar lines.
“The Seattle Transit Measure is one of the reasons why the bus is an irresistibly good way to get around Seattle” said Wilson in a statement. “Transportation is one of the biggest costs for most families, so these investments are essential to make our city more affordable so Seattleites can get to jobs, opportunities, and each other without a car.”
Wilson’s plan, which would raise $138 million in taxes over the next ten years, must be first approved by the council.
If it gains passage, voters would then decide on the tax increase issue in a referendum in November.
Wilson used her position as the co-founder and executive director of the Transit Riders Union to run for mayor last year.
The transit referendum will be first debated on Thursday by the City Council Transportation, Waterfront & Seattle Center Committee.
Committee Chairman Ron Sake was not immediately available for comment.
