Starting June 1, 2026, the City of Tacoma will implement transportation impact fees, taking a significant step toward a safer, more connected, and equitable transportation network.
Authorized by the City Council through Ordinance 29082 late last year, the program assesses a one-time fee on new residential, commercial, and industrial developments so that new growth helps support the infrastructure capacity needed to accommodate it, reducing the financial burden on existing taxpayers.
“I am looking forward to seeing this program come to fruition this month,” said At-Large Council Member Kristina Walker and Chair of the Infrastructure, Planning, and Sustainability Committee. “As one of the only cities in our region without transportation impact fees, the City Council and City staff spent a great deal of time tailoring the program to the needs of our community. Transportation impact fees will become part of the diverse ecosystem of funding that we rely on to bring large infrastructure projects to life. Most importantly, they are going to help us implement our newly adopted Transportation and Mobility Plan and advance safety 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 increasing demand on its local transportation network. Transportation impact fees will directly fund new infrastructure—such as sidewalks, bike lanes, trails, and intersection improvements—supporting the “One Tacoma” vision of creating complete, 20-minute neighborhoods where daily essentials are easily accessible.
Transportation impact fees are projected to generate approximately $16 million annually, or an estimated $164 million over the next decade. This establishes a dedicated revenue stream, allowing the City to fund critical transportation expansion projects without relying on limited General Fund resources. The revenue will be directed toward projects identified in the City’s Capital Facilities Program and will be guided by the City’s Equity Index.
To see to it that transportation impact fees in Tacoma promote sustainable growth without hindering housing affordability or vital community services, there are several key exemptions and reductions:
- Affordable Housing: An 80 percent fee reduction for qualifying low-income housing developments with a recorded covenant ensuring long-term affordability (RCW 82.02.060).
- Childcare: An 80 percent reduction for early learning facilities where at least 25 percent of children qualify for state-subsidized childcare (RCW 82.02.060).
- Transit-Oriented Development: A 50 percent reduction for qualifying multifamily projects near major transit stations (RCW 82.02.060).
- Existing Homeowners & Businesses: Full exemptions for alterations, renovations, or replacements of existing structures that do not add new dwelling units or expand usable commercial space.
With an ongoing focus on transparency and accountability, the City’s Public Works Department will track the program’s success and report to the City Council annually. These reports will detail revenue collected, project delivery milestones, and geographic equity outcomes to verify that the funds are directly benefiting the community as intended.
Developers and property owners planning new projects are encouraged to review the fee structures prior to the June 1 implementation date. Details on the program, including fee schedules and exemption applications, are available on the City’s website.