Pullman sales tax is increasing next year

PULLMAN — The Pullman City Council approved a sales tax increase next year to fund a variety of street maintenance and transportation projects.

Councilors came together during a regular meeting Tuesday night to hold a public hearing on the proposed hike, however it attracted no commenters.

Members unanimously passed the measure to raise sales tax by one-tenth of a percent beginning Jan. 1, 2025.

The city first considered the increase in April last year after it received a backlog of street repairs within the city, according to documents attached to the meeting agenda. Councilors created the Transportation Benefit District, governed by the city council, to allow a new sales tax within city limits be implemented.

Documents stipulate the district is allowed by Washington law to raise sales tax by one-tenth of a percent without voter approval. A voter-approved measure would allow for an additional two-tenths of a percent to be added to the sales tax rate, however this is not what the city was requesting.

Pullman’s current sales tax rate is 7.9%. An increase in rates will create another source of revenue to address the accumulation of maintenance requests, generating about $520,000 annually, according to the documents. The money will fund the city’s five-year Transportation Improvement Plan totaling to just over $83 million.

Councilor Ann Parks said while many don’t like to see increasing sales taxes, there’s plenty of benefits. The city won’t just be charging its residents, but everyone who makes a purchase in Pullman.

She added the funds will be set aside to allow the city to address necessary transportation projects.

A few downtown business owners also came to speak at the meeting.

Michelle Kelly, owner of Michelle’s Closet, said her business as well as many others are struggling to operate because of the Main Street construction project.

She said sales have been worse than what stores experienced during the COVID-19 pandemic. Many projected to lose around 40% of business while downtown received renovations, however she said she’s seen an 80% decline.

Kelly said she’s not the only one feeling the effects — she said several businesses may not have enough funds to operate after a couple months post-project.

Other businesses came to discuss a new land lease the city is proposing. Documents say the city may be adjusting the fee for businesses following the completion of Project Downtown.

The proposal is intended for businesses within Pullman city limits that have sidewalk cafes or sidewalk seating not exceeding 250-square-feet. The fee is $250 for the initial application and $200 for each subsequent year the lease is in place.

Documents say in comparison the city of Spokane requires $300 for the initial application and a $250 fee annually thereafter

Chris Chandler, co-owner of Neill’s Flowers, said he doesn’t understand why Pullman is using Spokane as a comparison. He added Moscow requires around $125 for the initial application, $25 the first year and $55 each subsequent year.

Sandy Castle del Conte, owner of Bruised Books, said the fee is a “significant jump” from the current $10 yearly payment. She asked councilors to consider lowering it while many businesses are struggling from the six-month construction project.

Councilors chose to table the discussion for a later date and reassess the city fees it uses for comparisons.

The city was expecting to begin accepting new applications for land leases Oct. 1, to be approved by the city council after Oct. 15. The application period has been delayed, Mayor Francis Benjamin said, because a fee must be set before receiving any applications.

Pearce can be reached at epearce@dnews.com.