Tacoma: Transportation Impact Fees to Help Fund Critical Infrastructure and Enhance Safety

~ Tacoma City Council Approves Transportation Impact Fees to Improve City's Infrastructure

In a move towards creating a safer, more connected, and equitable future for Tacoma's transportation network, the Tacoma City Council has passed Ordinance 29082. This ordinance amends Chapter 10.31 of the Tacoma Municipal Code and authorizes the collection of transportation impact fees, which will go into effect on June 1, 2026.

At-Large Council Member Kristina Walker, who also serves as the Chair of the Infrastructure, Planning, and Sustainability Committee, expressed her gratitude towards city staff for their hard work in developing this proposal. She stated that as one of the only cities in the region without transportation impact fees, it was important to tailor the program to meet the needs of Tacoma's community. Walker also emphasized that these fees will play a crucial role in funding large infrastructure projects and ensuring that growth does not disproportionately burden existing residents.

With an expected population growth of 1.6 million people by 2050, Tacoma is facing increased demand on its transportation network. The new program will assess a one-time fee on new residential, commercial, and industrial developments. The revenue generated from these fees will directly fund new infrastructure capacity such as sidewalks, bike lanes, and intersection improvements to accommodate this growth.

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The program is estimated to generate approximately $16 million annually and create a dedicated revenue stream for critical transportation expansion projects. This will help reduce reliance on limited General Fund resources.

The City's Capital Facilities Program has identified specific projects that will benefit from this funding. These projects were selected based on input from the City's Equity Index and Transportation and Mobility Plan.

To ensure that housing affordability and community services are not hindered by these fees, the ordinance includes key exemptions and reductions. These include an 80 percent fee reduction for qualifying low-income housing developments, early learning facilities serving state-subsidized families, and transit-oriented development projects near major transit stations. Existing homeowners will also be fully exempt from fees for renovations, alterations, or replacements of existing structures that do not add new dwelling units.

The City has spent 11 years refining this program through engagement with the Transportation Commission and community stakeholders. Public Works staff will provide annual reports on the revenue collected and specific projects funded.

More information about the transportation impact fees can be found on the City's website. This significant step taken by the Tacoma City Council is a crucial move towards creating a better and more sustainable future for the city's transportation network.

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