By Pepper Fisher
PORT ANGELES – The Port Angeles City Council this week approved an ordinance to increase the Transportation Benefit District Tax by one tenth of one percent. The increase, which takes effect January 1, will be used for improvements to the City’s transportation infrastructure.
The ordinance increases the Transportation Benefit District (TBD) tax from 2/10 of 1% to 3/10 of 1%, resulting in an additional 0.1% sales tax on eligible purchases made within city limits.
City Manager Nathan West told KONP that he likes the structure of the TBD tax because it doesn’t put the entire burden on local residents.
“The best part about the Transportation Benefit District is, in my opinion, is it is sharing the burden of the cost of repairing and improving our streets with all of those who visit our community by it being a sales tax mechanism. And that means, it’s not on the backs of just 20,000 people. It is an expense that is shared well beyond that.”
The revenue collected will fund projects outlined in the City’s Transportation Improvement Plan, focusing on critical street improvements and covering the operational costs of the Streets Division. In 2024, the tax increase is estimated to generate over $509,000 in revenue.
West explained why additional revenue is needed.
“And right now, when you look at the need we have street-wise, we have over 120 million in deferred pavement projects, and we have over 60 million in new transportation needs. Everything from sidewalks to signals. And so, that’s 180 million dollars. That’s a lot of money. We have a lot more work to do and, ultimately, it’s the right thing to do. And make sure that we’re protecting our citizens, too, and that those who are using the streets are helping pay for the cost.”
The estimated average cost to households for the increase is $18.90 per year, a significantly lower amount compared to alternative revenue options considered.
Also, West said the increase in TBD tax collection will help the City to pursue additional funding opportunities through state and federal grants.