Sound Transit Considers Property-Tax Increase To Ease Funding Gap

Sound Transit

SEATTLE - To ease a multi-billion dollar funding gap, Sound Transit is reportedly considering a 1% property-tax increase.

RT&S reported September 26 that Sound Transit was weighing its options regarding the increasing costs of the Everett Link Extension. For the Everett Link Extension, the Capital Delivery Cost Workplace Update goes over the 2021 Financial Plan versus the Current Cost Estimate for 2025. This comparison shows an increase between $200 million to $1.1 billion. In response, Sound Transit is weighing its options to decrease the costs.

Now, King5 reports Sound Transit is considering a 1% property-tax increase to ease a “projected $22 to $30 billion funding gap and keep long-delayed light-rail projects on schedule.” The idea came from a public hearing discussion and would raise the property tax levy to $183 million. This is a 3.8% increase from 2025’s levy, the report says. Washington state law only allows Sound Transit to implement a 1% increase “on its existing tax base.” The total increases because “new construction and newly taxable properties are added each year.” This brings the total to 3.8%.

If implemented, this would create $6 million in revenue and $5 million from “new construction and rising property values.” The additional revenue would help to keep infrastructure projects on schedule. The report goes on to say that projects, such as the work from Everett to Tacoma, were approved by voters in 2016 as part of Sound Transit 3 package. However, these projects have been affected by increased costs of construction and materials. This tax increase would not require another vote, as it is stated in the 2016 ballot measure that Sound Transit has the authority for an annual 1% increase.

If the property-tax increase is not implemented, Sound Transit’s director of financial planning and analysis Stephanie Ball said the agency “would lose about $47 million in projected revenue through 2046,” adding that the projected revenue compounds annually. Before a final budget vote can take place, Sound Transit says residents can provide public comments during two upcoming meetings.

The 2026 FIFA World Cup marks an “unofficial deadline” as Sound Transit works to open the East Link line across Lake Washington. This expansion would be funded through Sound Transit’s 2026 budget. $1.9 billion has been marked for system expansion with another $1.6 billion for operations, the report says. Seattle Mayor Bruce Harrell, however, said that while the FIFA World Cup is a “tangible event to work behind” it is a “dangerous precedent” to state outright that it will be able to delivery every project prior to the World Cup. Instead, Mayor Harrell is focused on reducing the cost caused by delays of construction by “speeding up permitting, dedicating more staff experience to this project, and selecting a national civic project leader as the next director of Seattle’s Department of Construction and Inspections.”