City Council Adopts Resolution of Intent Relating to Local Sales and Use Taxes

In a proactive move to tackle the housing affordability crisis, Tacoma's City Council has adopted Resolution 40388, which allows for a local retail sales and use tax under Substitute House Bill 1406. This tax, which provides a 0. 0146 percent credit against Washington state's sales tax, is designed to raise substantial funding for affordable housing initiatives without increasing the tax burden on consumers. Expected annual revenues between $800,000 and $900,000 will support the acquisition, rehabilitation, and construction of affordable housing units. Mayor Victoria Woodards expressed pride in Tacoma being one of the first cities in Washington to implement such a measure, underscoring the council's commitment to ensuring all residents have access to necessary resources.

The tax can be enacted for a maximum of 20 years, specifically targeting households with incomes at or below 60 percent of the area median income. This initiative aligns with Tacoma’s broader Affordable Housing Action Strategy, which seeks to mobilize up to $70 million in public, philanthropic, and private investments over the next decade. With nearly 33,000 households in Tacoma struggling with high housing costs, this strategic funding approach aims to alleviate financial burdens on residents. For further details on Tacoma's efforts to address housing affordability, residents can visit cityoftacoma. org/affordablehousingstrategy.