Tacoma Streets Initiative II

Replacing Proposition A by imposing the 1/10th of 1% sales tax by the Transportation Benefit District (TBD) that is set to expire on March 31, 2026, will support street improvements, maintenance, preservation, and transportation infrastructure operations, with a focus on enhancing public safety, health, and creating a more connected, accessible city. Proposition A provides additional funding for transportation projects outlined in the Capital Improvement Plan, the Transportation Element of the Comprehensive Plan, and the City’s Six-Year Comprehensive Transportation Improvement Program.

The replacement is necessary to maintain and improve Tacoma’s streets and transportation infrastructure. Without continued funding, Tacoma risks losing the progress made in street improvements and will face challenges in maintaining current service levels. In 2023, TBD funded projects included 196 blocks of residential surface treatment, 85 blocks of residential overlay, 278 blocks of residential preventative maintenance, installation of 87 ADA compliant curb ramps, and permanent repair of 2,003 potholes.

By replacing Proposition A with the 1/10th of 1% sales and use tax by the Transportation Benefit District (TBD), it is projected to generate $7.5 million a year to fund projects outlined in the Comprehensive Transportation Program, safety, and roadway improvements, as well as multimodal enhancements. This funding will be used for street improvements, maintenance, preservation, and the operations of Tacoma’s streets and transportation infrastructure. This includes improvements to residential streets, sidewalks, crosswalks, bike and pedestrian mobility, and freight access, which are vital for economic growth and mobility. The TBD is required by state law to issue annual reports specifying the status of TBD revenues, expenditures, and construction schedules. These reports are available to the public.

Yes, residents will see continued improvements in transportation infrastructure. The funding will help maintain and improve arterial and residential streets, sidewalks, crosswalks, and bike lanes.

By replacing Proposition A with the 1/10th of 1% sales and use tax by the Transportation Benefit District (TBD) at the same tax rate imposed by the TBD, there is no additional expense to the taxpayer. Sales and use tax in Tacoma will not increase under this replacement and will amount to one cent on a $10 purchase.

Currently, the replacement of this proposition is the most viable option for maintaining Tacoma’s transportation infrastructure at its current level. Without it, the city risks losing the progress made in street improvements and the ability to maintain its existing transportation systems.

The utility earnings and property tax proposition will provide continued funding for street repair and improvements including residential street resurfacing, maintenance and capital improvements for arterials and freight access roads, promoting safety through Vision Zero, focusing on reducing traffic-related fatalities and serious injuries with systemic safety enhancements like protected bike lanes and safer crossings, and expanding multimodal connectivity.

The expiration of the original Tacoma Streets Initiative funding in March 2026 presents a critical juncture for the City of Tacoma. Without renewed funding, the City risks losing ground on the progress made over the past decade, especially with decreasing arterial road conditions and increases in traffic-related fatalities and serious injuries, the current infrastructure is not keeping pace with the growing demands of an expanding city.

The Streets Initiative II seeks to build on the successes of its predecessor by continuing to focus on:

1. Arterial Road Improvements: Major arterials serve as the backbone of Tacoma’s transportation network, yet many of these roads are in urgent need of repair. Investing in these corridors will enhance connectivity, support freight and transit operations, and stimulate economic development.
2. Residential Road Maintenance: Maintaining roads is a continuous effort, essential to preserving the improvements made to the residential road network over the past decade. While over 6,000 blocks of residential roads have been improved or maintained, approximately 2,000 blocks remain unaddressed and in need of attention.
3. Equity and Accessibility: According to the City’s Equity Index, 64% of the highest-risk roadways are located in neighborhoods with low or very low access to opportunities. Streets Initiative II prioritizes projects in these underserved areas to reduce disparities, enhance safety, and promote equitable access to transportation options.
4. Vision Zero and Safety Enhancements: As part of the City’s Vision Zero commitment, the initiative focuses on reducing traffic-related fatalities and serious injuries. Investments will include systemic safety improvements, such as protected bike lanes, safer pedestrian crossings, and enhanced lighting in high-risk areas.
5. Multimodal Connectivity: The new initiative emphasizes the creation of multimodal corridors that integrate bike lanes, sidewalks, and transit options to support sustainable transportation. The goal is to increase mobility options for all residents, with a focus on connecting neighborhoods to schools, parks, and business districts.

This proposition will authorize and replace, the current Proposition 3 rates—1.5% utility tax (natural gas, electric, and phone companies) and a property tax rate of $0.20 per $1,000 of assessed value—with an increase to a 2% utility tax and $0.25 per $1,000 of assessed value.

The property tax levy rate is the amount of tax per $1,000 of assessed property value the city of Tacoma or any municipality collects.

How It Works:

• If Proposition No. 1 is approved, Tacoma’s regular property tax levy rate would be set at $1.95 per $1,000 of assessed value starting in 2026.
• This means for every $1,000 of a property’s assessed value, the owner would pay $1.95 in property taxes toward city services.

Example Calculation:

• Suppose a homeowner’s property is assessed at $400,000.
• The levy rate is $1.95 per $1,000 of assessed value.
• Calculation: $400,000/$1,000 = $400
  $400 x $1.95 = $780
• The homeowner would pay $780 per year in city property taxes under this new levy.

✅ Applies only to the assessed value of the property, not the market value.
✅ Seniors, veterans, and qualifying individuals may be eligible for exemptions.

Key Concepts of Levy Rates in Municipal Propositions:

1. Types of Levy Propositions:
   • Regular Levy – Ongoing property tax collection within statutory limits for general municipal operations, such as police, fire, and public works.
   • Levy Lid Lift – A temporary or permanent increase in the property tax rate above the statutory cap (see explanation below) to generally fund services or projects. This requires voter approval.
   • Special Levies – One-time or limited-duration levies (often for schools, fire districts, or transportation) that fund specific initiatives beyond the regular budget.
   • Bond Measures – A form of levy that repays municipal debt issued for large infrastructure projects (e.g., roads, schools, fire stations). These usually require a higher voter approval threshold.
2. Statutory Cap–Levy Limits in Washington State – Municipalities are subject to limits on how much they can increase property taxes each year:
   • The 1% Cap Rule: Local governments can only increase the total property tax levy by 1% per year without voter approval, regardless of increases in property values.
   • A levy lid lift or special levy proposition allows cities to increase the rate beyond this cap with voter approval.
3. Voter-Approved Levy Propositions – If a municipality needs additional revenue, it can place a proposition on the ballot asking voters to approve a tax increase. These propositions often include:
   • Purpose of the levy
   • Duration (permanent or temporary)
   • Maximum rate increase requested
   • Estimated revenue generated

This new proposition is projected to generate close to $25 million dollars a year dedicated to street maintenance and roadway safety improvements.

The Tacoma Streets Initiative II plan proposes raising the property tax levy from the current rate of $0.20 per $1,000 of assessed property value to $0.25 per $1,000. Based on average Tacoma assessed property values in 2025, this would increase the monthly cost from the current $4.67 ($56 per year) to $10.67 ($128 per year). This represents an increase of $6 per month or $72 annually.

The Tacoma Streets Initiative II plan also includes a recommendation to increase the utility tax from 1.5% to 2%. Based on the average amount of households in Tacoma, this would increase of utility costs per household about $2.16 per month or $26 annually. However, you may qualify for the TPU Bill Credit Assistance Plan, which could reduce the impact of this increase on your utility bill.

The City has adopted multiple plans that are regularly updated to identify street improvement projects for funding. These plans include:

• Six-Year Comprehensive Transportation Improvement Program
• Six-Year Infrastructure Maintenance Plan
• Transportation Master Plan

The Public Works Department has also provided an in-depth layout of funding and project planning available on:

• Tacoma Streets Initiative Dashboard