Tacoma takes a decisive step towards enhancing its transportation infrastructure with the approval of impact fees that will bolster safety and connectivity in the face of burgeoning population growth. The City Council recently passed an ordinance amending its Municipal Code to introduce transportation impact fees slated to start June 1, 2026. The fees will be levied on new development projects in an effort to fund necessary enhancements to the city's transportation systems.
At-Large Council Member Kristina Walker, who chairs the Infrastructure, Planning, and Sustainability Committee, expressed her gratitude towards City staff for crafting a program finely attuned to Tacoma's needs. "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," Walker said in a statement released by the City of Tacoma. She emphasized the role of the fees in executing the city's Transportation and Mobility Plan without unfairly saddling existing residents with the financial weight of growth-related infrastructure expansions.
The initiative arrives as a strategic move addressing the anticipated swell of Tacoma’s population, which could see an uptick of 1.6 million people by 2050. The fees are expected to pull in about $16 million each year, earmarked for vital transportation projects including the introduction of new sidewalks and bike lanes, and improvements to intersections. This shift toward a more sustainable funding source aims to curb the city's reliance on the General Fund for tackling its expansion projects.
Proceeds from the fees will be funneled into projects identified within the City's Capital Facilities Program, which align with the goals set out in the Equity Index and the city's broader Transportation and Mobility Plan. To ensure critical factors like housing affordability and crucial community services aren't compromised by the new fees, the ordinance comes with a raft of exemptions and reductions. This includes an 80 percent fee reduction for certain low-income housing and early learning facilities, a 50 percent reduction for transit-oriented multifamilial projects, and complete exemptions for renovations to existing structures that don’t add new dwelling units.
It took the City 11 years of refining, with consultations from the Transportation Commission and engagement with community stakeholders, to arrive at this comprehensive program. Public Works staff will keep a tab on the revenue amassed and report annually on the specific projects the funds support.
