The Tacoma City Council has taken a significant step toward facilitating a safer, more connected, and equitable future for Tacoma’s transportation network. With the passage of Ordinance 29082 amending Chapter 10.31 of the Tacoma Municipal Code, the City Council has authorized the collection of transportation impact fees effective June 1, 2026.
“As the Chair of the Infrastructure, Planning, and Sustainability Committee, I want to thank City staff for their diligent and extensive work developing our proposal for Transportation Impact Fees,” said At-Large Council Member Kristina Walker. “As one of the only cities in our region without Transportation Impact Fees, we spent a great deal of time making sure to tailor the program to the needs of our community. Transportation Impact Fees will become part of the diverse eco-system of funding that we rely on to bring large infrastructure projects to life. Most importantly, Transportation Impact Fees are going to ensure that we implement our newly adopted Transportation and Mobility Plan and advance safety and mobility in Tacoma without disproportionately placing the financial burden of new growth on existing residents.”
With the region expected to grow by 1.6 million people by 2050, Tacoma faces increased demand on its transportation network. The new program assesses a one-time fee on new residential, commercial, and industrial developments. These fees will directly fund new infrastructure capacity—such as sidewalks, bike lanes, and intersection improvements—necessary to accommodate growth.
The program is projected to generate approximately $16 million annually, creating a dedicated revenue stream that will help the City move away from reliance on limited General Fund resources for these critical transportation expansion projects.
The revenue generated will be directed toward projects identified in the City’s Capital Facilities Program, which were informed by the City’s Equity Index and Transportation and Mobility Plan.
So as not to hinder housing affordability or community services, the ordinance includes some key exemptions and reductions, including:
- Affordable Housing: An 80 percent fee reduction for qualifying low-income housing developments
- Childcare: An 80 percent reduction for early learning facilities serving state-subsidized families
- Transit-Oriented Development: A 50 percent reduction for qualifying multifamily projects near major transit stations
- Existing Homeowners: Full exemptions for renovations, alterations, or replacements of existing structures that do not add new dwelling units
The City spent 11 years refining this program through engagement with the Transportation Commission and community stakeholders. Public Works staff will report annually on revenue collected and specific projects funded.
More details are available on the City’s website.