HomeMy WebLinkAbout02/17/2026 09.A. Ordinance - add YMC 3.78.062_enact 0.01% sales tax for TBD rS _�'V
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.A.
For Meeting of: February 17, 2026
ITEM TITLE: Ordinance establishing a 0.1% sales tax for the Transportation Benefit
District
SUBMITTED BY: Bill Preston, Community Development Director
SUMMARY EXPLANATION:
At their February 3, 2026 regular meeting, Council directed staff to prepare an ordinance to establish a
0.1% sales tax to fund the Transportation Benefit District project list. The Ordinance is provided for
Council review.
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Pass Ordinance.
ATTACHMENTS:
Ordinance Enacting .01 sales tax for TBD_draft
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ORDINANCE NO. 2026-
AN ORDINANCE of the City of Yakima, Washinton, adding a new Section, 3.78.062 to the
Yakima Municipal Code imposing an additional sales and use tax of one-
tenth of one percent within the boundaries of the City of Yakima
Transportation Benefit District for the purpose of financing the costs
associated with transportation improvements in the district as authorized
by the Revised Code of Washington.
WHEREAS, on January 10, 2017, the City Council created the City of Yakima
Transportation Benefit District ("TBD") with boundaries coterminous with the boundaries of the
City of Yakima, in accordance with Chapter 36.73 RCW; and
WHEREAS, on December 5, 2017, the City Council established a $20 annual vehicle
license fee for the purpose of preserving, maintaining, operating, construction, or reconstructing
the transportation infrastructure and funding transportation improvements that have been
identified in an approved project list; and
WHEREAS, the City Council desires to replace the annual vehicle license fee with a
one-tenth of one percent (0.1%) sales tax to fund the TBD; and
WHEREAS, City staff will be tasked with forwarding this ordinance to the Department of
Revenue so that the tax can be assessed as soon as possible, and based on the timing it is
anticipated that the tax may be assessed in July of 2026; and
WHEREAS, the City Council finds that it is within their power and is in the best interest
of the city and its residents to institute a one-tenth of one percent sales tax to fund the
Transportation Benefit District, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Chapter 3.78.062 Is hereby added to the City of Yakima Municipal Code
to read as follows:
Chapter 3.78.062 Transportation Benefit District Tax
A. Pursuant to RCW 36.73.065 and RCW 82.14.0455, there is hereby imposed an
additional sales and use tax to be collected from persons who are taxable by the
state under Chapters 82.08 and 82.12 RCW upon the occurrence of any taxable
event within the district. The amount of the additional tax shall be one-tenth of one
percent (0.1%) of the selling price, in the case of sales tax, or the value of the article
used, in the case of the use tax.
B. The tax imposed by this section shall apply for a period of ten (10) years from the
date the tax is first collected within the district and shall thereafter cease to be
imposed unless renewed with the affirmative vote of the voters voting at an election
or by vote of the City of Yakima City Council.
C. The tax imposed by this section shall be in addition to any other taxes authorized by
law, including but not limited to the sales and use taxes imposed under other
sections of the Yakima Municipal Code.
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D. The revenues received from the tax imposed by this section shall be general
revenues and shall be used for those transportation-related purposes in accordance
with RCW 36.73 as written or hereafter amended, or as otherwise authorized by law.
Section 2. The City Clerk and the Finance Director are responsible for submitting
this ordinance to the Washington State Department of Revenue and request the Department of
Revenue take all necessary steps to implement and collect the tax imposed by this ordinance
as soon as possible.
Section 3. If any Section, sentence, clause, or phrase of this ordinance should be
held to be invalid or unconstitutional by a court, board, or tribunal of competent jurisdiction,
such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase of this ordinance.
Section 4. This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this day of , 2026.
Matt Brown, Mayor
ATTEST:
Rosalinda Ibarra, CMC, City Clerk
Publication Date:
Effective Date:
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