‘Better-than-baseline’ — Seattle sales tax would reach 10.7% under Wilson Seattle Transit Measure proposal

A slide from SDOT’s presentation on the mayor’s proposal planned for Thursday’s council session

With roots as an advocate for investment in the city’s system of buses, trolleys, and trains, Mayor Katie Wilson is pushing for Seattle residents to support a doubling of the current 0.15% sales tax in her proposed renewal of the city’s transit measure and “better-than-baseline” service.

“The Seattle Transit Measure is one of the reasons why the bus is an irresistibly good way to get around Seattle” Wilson said in a statement on her administration’s proposal. “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.”

In 2020 despite the challenges of the COVID-19 crisis, Seattle voters approved boosting the Seattle Transportation Benefit District sales tax to 0.15% in a six-year package to fund service for the city’s most important transit routes from services operated by King County and Sound Transit. The package also included increased spending over the first four years on increased transit service to West Seattle as the city sorted out how best to deal with the failing West Seattle Bridge.

80% of Seattle voters approved the increase and the six-year package.

The tax had previously been set at 0.10%, a level backed by then-Mayor Jenny Durkan.

Under Wilson’s 2026 proposal, the package would renew and dramatically expand the 2020 Seattle Transit Measure. Wilson’s plan bumps the current 0.15% sales tax up to 0.30%, generating an estimated $138 million annually.

For a median two-person Seattle household, that would mean a bump from about $29 to around $58 a year at the register.

If approved, Seattle’s total combined sales tax rate would reach 10.70%.

The new measure would be in effect for 10 years.

City Hall plans to use the cash to fund 280,000 annual Metro bus trips — a 100,000-trip increase over current levels — with a heavy focus on nights, weekends, and vital east-west connections across the city’s denser, transit-dependent neighborhoods.

The measure also doubles down on affordability, expanding the city’s free ORCA pass program from 10,000 to 22,000 eligible lower-income riders, specifically adding 12,000 Housing Choice Voucher participants to the roster. Capital funds would also target streetcar operations and bottlenecks delaying buses.

According to the Seattle Department of Transportation, annually, $96.1 million of the measure’s funding would go to increased transit service, while $23.4 million would be earmarked for the city’s struggling streetcar lines, $9 million for transit access programs including free ORCA passes, and $3.5 million for capital projects.

Additionally, $6.1 million a year would go to support Sound Transit 3 projects in the city. CHS reported here on the new plan for Sound Transit’s expansion and a package of deferrals and cuts to address a projected $34.5 billion shortfall.

The total package adds up to a $1.4 billion package.

The proposal now moves to the Seattle City Council for deliberation and public comment before heading to the ballot.

Despite Seattle’s history of embracing sales and property tax increases for vital services, Wilson’s proposal arrives against a backdrop of increased concerns around costs in the city.

This summer, voters will be asked to approve a property tax increase to support the city’s libraries. That vote will come as Seattle could be nearing a legal limit on property taxes after a city hall analysis showed Seattle’s property tax structure is currently operating about $780 million below legal limits, necessitating a “capacity reserve” to manage potential fluctuations in property values.

In 2024, Seattle voters approved a $1.55 billion transportation levy with property tax going to support maintenance and construction of the city’s streets and sidewalks.

The Seattle Transit Measure being lined up for a vote is about paying for the public transit services that ply those streets and boosted service on key routes reflected in the city’s “Frequent Transit Network.” The money will also be used to fund select capital projects beyond the voter-approved 2024 transportation levy funding.

Still, Seattle voters might take a little more convincing this time around. Seattle officials seem aware of the challenge. Monday, Seattle City Council president and District 3 representative Joy Hollingsworth invited constituents to a “Meeting on Affordability.”

“We will discuss how all of this adds up for Seattle households, and most importantly: what outcomes and results people are seeing from these investments.Looking forward to the conversation,” Hollingsworth said as she thanks Councilmember Dan Strauss for hosting the session.

Hollingsworth, Strauss, and Wilson may want to schedule a few more sessions soon.

Council members were notably absent from Wilson’s announcement of the proposal including transportation committee chair Rob Saka who has repeatedly signaled a strong desire to divert a portion of spending away from pure transit service to boost funding for resources like new sidewalks.

With the current Seattle Transit Measure set to expire next March, a renewal is most likely to be put in front of voters this November.

Thursday, the council’s Select Committee on Seattle Transportation Benefit District will meet (PDF) to begin debate on shaping the proposal for the ballot.

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