Richland considering replacing car tab fee with 0.1% sales tax for roads

RICHLAND, Wash. – The City of Richland is considering a major change in how they fund the Transportation Benefit District (TBD).

City Manager Jon Amundson delivered a presentation to the city council September 16 with a recommendation to eliminate the current $20 per vehicle car tab fee and replace it with a 0.1% sales tax.

Currently, the car tab fee generates about $1 million annually, but maintaining the city's pavement condition index (PCI) benchmark requires approximately $4 million each year. This shortfall has led to reliance on the General Fund, Real Estate Excise Tax (REET) and reserves, Amundson said.

Amundson further said the proposed 0.1% sales tax could more than double TBD revenue, generating an estimated $2.25 million annually based on 2024 taxable sales. This would ease t