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The original item was published from 9/21/2023 9:23:32 AM to 10/18/2023 8:05:03 AM.

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Posted on: September 21, 2023

[ARCHIVED] City Council Approves 0.1% Transportation Benefit District Tax Increase, Effective January 1, 2024

Press Release 3

On Tuesday, September 19, 2023, the City Council approved an ordinance to increase the Transportation Benefit District Tax by 0.1%. The increase, which takes effect January 1, 2024, reflects the City’s commitment to enhancing transportation infrastructure and improving the quality of life within our community.

The ordinance increases the Transportation Benefit District (TBD) tax from 2/10 of 1.0% to 3/10 of 1.0%, resulting in an additional 0.1% sales tax on eligible purchases made within city limits. 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 $509,100 in revenue.

Over the past year, the City Council has explored various revenue-generating options. Ultimately, the TBD tax increase was chosen to ensure that the responsibility for funding is not placed on Port Angeles residents and business owners alone. Through this option, visitors will also contribute toward the maintenance of the local streets and roadways utilized during their stay.

The estimated average cost to households for the 0.1% increase is $18.90 per year, a significantly lower amount compared to alternative revenue options considered.

Moreover, the increase in TBD tax collection demonstrates the City’s exhaustive efforts to address growing transportation improvement needs and will help the City to pursue additional funding opportunities through state and federal grants.

For more information regarding the ordinance or TBD tax, please contact the City of Port Angeles Finance Department at (360) 457-0411 or finance@cityofpa.us.