Sales taxes in Gig Harbor could increase again next year.
The 0.1 percent sales tax increase — or 1/10 of a cent, which is equivalent to an extra 10 cents on every $100 purchase — being considered by the city council would raise about $1 million for street maintenance, which the city says is underfunded.
If approved at the Sept. 23 council meeting, the measure would bring the total sales tax in Gig Harbor to 9.1 percent in 2025, after voters passed another 0.1 percent sales tax increase in the Aug. 6 primary. to fund police and public safety services.
It would take effect Jan. 1, 2025, and expire in 10 years. The proposed tax increase does not require a public vote, under Washington state law: 0.1% of the total 0.3% sales tax that local governments can impose can be passed by a majority vote of the board, according to the Municipal Research and Services Center.
That sets it apart from other measures Gig Harbor voters saw on their ballots earlier this year, such as the public safety sales tax and a proposal to lift the ceiling on levies which failed in April.
The public will be able to give its opinion during the first reading of the proposed ordinance on September 9.
What maintenance would the income finance?
The proposed tax increase would apply to existing taxes. Transportation Advantage District created by the city in 2018 and would be used to finance street maintenance.
Gig Harbor City Administrator Katrina Knutson told the News Tribune Friday that the city is supposed to perform roadway maintenance every year, but has done so less than half the time over the past decade.
“When roads are not properly maintained, you start to see things like potholes or uneven surfaces that can lead to unfortunate incidents like car damage,” Knutson said.
The city has no direct source of revenue for street maintenance, according to the city’s Aug. 23 Gig-a-Byte newsletter.
“Delayed road maintenance results in decreased public safety, higher insurance claims/costs, and higher material and labor costs,” the newsletter states.
The city estimates that $2.5 million is needed each year to properly maintain the roads. That figure is based on the number of roads in Gig Harbor and the cost of materials, according to Knutson.
With the city having deferred road maintenance for much of the past decade, it has accumulated a number of priority projects that it has yet to complete. Knutson estimated the cost of completing these projects at $6.5 million, based on road studies conducted by city engineers. For the city’s next two-year budget cycle, the following streets require roadway maintenance and ADA improvements:
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Harborview Drive, from Pioneer Way to Stinson Avenue
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38th Avenue, from the city limits to 41st Street
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Soundview Drive, from Hollycroft Street to Magnolia Lane
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Point Fosdick Drive, at Briarwood Lane
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Stinson Avenue, from Pioneer Way to Grandview Street
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Borgen Boulevard, from Peacock Hill Avenue to Burnham Drive
Every two years, additional roads will need to be analyzed, Knutson said.
The city is working on a…
