Seattle Mayor Proposes Near-Doubling of Transit Sales Tax for Bus Upgrades
Seattle Mayor Proposes Near-Doubling of Transit Sales Tax

Seattle's tax-loving mayor has proposed a new tax on residents, nearly doubling a sales tax to help fund her ambitious public transit goals. Mayor Katie Wilson, 43, asked voters on Tuesday to approve a new 0.3 percent tax to pay for bus service improvements and distribute over 20,000 free bus passes.

'The Seattle Transit Measure is one of the reasons why the bus is an irresistibly good way to get around Seattle,' Wilson said. 'Transportation is one of the biggest costs for most families, so these investments are essential to make our city more affordable so Seattleites can get to jobs, opportunities and each other without a car.'

The ten-year measure would replace the city's current 0.15 percent Seattle Transit Measure sales tax, set to expire in March 2027, which saw voter support of around 80 percent in 2020. Funding toward Metro bus service would increase by about 50 percent and pay for around 280,000 trips each year, up from 100,000. Around 22,000 free ORCA transit passes would be handed out to lower-income residents over the decade, more than double the current amount, KOMO News reported.

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According to the city, the median two-person household would pay an additional $29 each year, totaling $58 up from the current $29 annual tax cost. 'The Seattle Transit Measure bolsters transit service so our buses and streetcars run more frequently throughout the day and night,' SDOT Acting Director Angela Brady said on Tuesday. 'People need to get around at all times of the day, and not everyone works a 9-to-5 job.'

The proposal would allocate around $96 million annually toward all-week bus services. It also plans to add around $6 million per year supporting Sound Transit's light rail expansions, including the West Seattle Link Extension, Ballard Link Extension and Graham Street Station. The measure also aims to tackle delays and improve accessibility at bus stops across the city.

'We've made it easier for a family to be car-free, or car-light. That adds hundreds or thousands of dollars to their yearly budget,' Wilson said. 'I'll also say that, you know, ridership is climbing back up. So we're looking forward to a future where ridership is surpassing and continuing to grow past pre-pandemic levels.'

In March, King County Metro reported an average of 274,000 weekday passengers, which, while increasing, remains far from its 2019 peak of 410,000, the Seattle Times reported. Washington Policy Center transportation analyst Charles Prestrud argued that the proposal would dismantle social equity, as 81 percent of low-income commuters drive or carpool. Prestrud said rising taxes would make the region less affordable, adding: 'Throwing money into ST3 is money in a black hole, where we will not see any benefits for decades.'

Public comment will be considered as the Seattle City Council reviews the measure and decides whether to put it forward for a public vote. The proposal comes after Wilson implemented a millionaire tax in the state, aimed at the super-rich. The tax, effective from the 2028 tax year, was signed into law at the end of March by Governor Bob Ferguson. Under the new state law, those earning over $1 million per year will face a 9.9 percent hike, which Ferguson called 'historic.'

The move follows Microsoft president Brad Smith raising alarm about the state's business climate last year. He told KOMO News: 'I'm probably more worried right now about the business climate in Washington than at any point over the last 30 years. If other people are paying for jobs to leave and we're taxing them to stay, that will make everything harder.' State Republicans criticized the move, warning that large corporations like Starbucks and T-Mobile might leave the state. Several other businesses, including Amazon and Meta, have already cut jobs in the state. The Daily Mail reached out to the mayor's office and the Seattle City Council for comment.

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