The city of Pullman may be raising its sales taxes to help fund street repairs.
The Pullman City Council came together Tuesday evening during its regular meeting. City Administrator Mike Urban presented the council with the benefits of creating a Transportation Benefit District. No action was taken. Urban will formulate an ordinance for the council to either approve or deny the district in April.
Councilmembers first discussed creating a Transportation Benefit District in 2021 when they received a report on the backlog of street repairs in the city.
The district would be governed by the city council, which has the ability to implement new sales taxes in the city. The new source of revenue garnered from a sales tax increase would be used on transportation projects like street maintenance.
If the district is approved, a Pullman Transportation Benefit District board would be created. It would have the authority to add one 10th of one percent to the sales tax rate within the city. In addition, a voter-approved measure would allow for up to three 10ths of one percent to be added to the sales tax rate. Currently, the City of Pullman’s sales tax rate is 7.9%.
A one 10th of one percent increase to the sales tax rate would generate about $500,000 annually. A three-10ths of one percent increase would garner about $1.4 million of revenue annually.
Councilmember Nathan Weller said a Transportation Benefit District is important for keeping up the quality of life for which many people come to Pullman.
Ann Parks, councilmember, said it’s important to delegate and separate out a fund for the transportation needs given the condition of Pullman’s roads and streets. She added there is a breadth of work that needs to be done and she supports the district.
Councilmember Megan Guido said being a good citizen is supporting and taking care of the town when it’s needed.
“If our roads don’t look good, we don’t look good,” Guido said.
