When you buy something in Tri-Cities, what are your sales taxes paying for?

Tri-Cities voters are likely to see at least one sales tax vote on ballots this November, but determining where the money goes can be confusing.

Some of the taxes have similar names to other fees you pay, such as the 911 surcharge you see on your phone bill, and the 911 sales tax that is being discussed as an option to pay for millions of dollars in upgrades to the Tri-Cities’ failing 911 communications system.

The phone bill surcharge helps pay for the programs that tell first responders where you are. The sales tax would be used to replace equipment on communication towers and radios.

Benton county is leaning toward using other funding sources, but Franklin is still considering whether the tax needs to be on the November ballot.

Voters in Benton and Franklin counties won’t have to make a $200 million decision for their transit service this year, but it’s likely to be talked about again.

First, elected leaders want to assess the fallout from the initiative to repeal Washington state’s controversial carbon tax. In that case, they’ll be asking voters to do something rare — to lower a local sales tax.

That’s because some members of the Ben Franklin Transit board wanted to cut their collection rate by 0.1 cents.

It’s a move that some on the board have been pushing for years, and now could be used to build support for passing the 911 infrastructure sales tax.

Grocery receipt. A stock image of a person holding a grocery receipt. Oklahomans will pay less at stores when the new legislation is passed in the summer.
Grocery receipt. A stock image of a person holding a grocery receipt. Oklahomans will pay less at stores when the new legislation is passed in the summer.

But it would have a massive impact on the region’s transportation system, costing the transit agency $200 million in funding over the next 13 years, and likely triggering further losses in state and federal money, according to a recent presentation to the board.

The board decided to wait and see. It wasn’t the first time they’ve discussed the matter and likely isn’t the last.

Franklin County leaders are considering even more drastic measures, having ordered its legal advisors to review what it would take to leave the transit partnership altogether.

Breaking down sales taxes

In most of Benton County, 8.7 cents is collected for every dollar spent on a purchase, and its 8.9 cents in Pasco. It ranges from 8.1 cents to 8.7 cents in other areas of Franklin County.

In Benton County and Pasco though, the taxes are nearly identical.

Pasco collects an extra 0.2 cents for its Public Facilities District after voters approved a measure to begin paying for an aquatics facility in 2022.

The sales tax starts with a rate of 6.5 cents for state collections and the remainder is dedicated to specific local funds.

Tax breakdown

  • 6.5 cents - Washington state

  • 0.85 cents - County

  • 0.35 cents - City

  • 0.6 cents - Transit tax (Ben Franklin Transit)

  • 0.3 cents - Public safety sales tax (For additional police officers, crime reduction programs and public safety initiatives)

  • 0.1 cents - Mental health tax (For a regional behavioral health center)

Some of the sales tax money in Richland and Kennewick is taken from their city collection for public facilities district operations. Other pools go to the state first and then are sent back for certain usages.

For example, in Richland 0.033 cents of the rate helps fund the REACH museum. That’s a credit against the larger 6.5% pool and comes back from the state’s collection. The Arts Center Task Force has broached the possibility of a levy to pay for a regional performing arts venue, but it has never made its way to the ballot.

Benton County collects more than twice as much sales tax revenue due to its larger population and retail base.

Of the $1.8 billion in retail sales in the Tri-Cities in 2020, only $500 million came from sales in Franklin County, according to data from the county.

Every 0.1 cents collected raises about $9.2 million in revenue annually across both counties, and is expected to increase at a rate of about $200,000 per year, according to the collection data present recent to transit leaders.

That’s just 1 penny collected of the 0.87 cents in sales tax for every $10 spent.

That means if voters in both counties were to approve the 0.1 cents 911 infrastructure sales tax, it would raise enough money to pay for the $20+ million overhaul of microwave towers and radio equipment within about two years, and continue to collect funds to guarantee that the equipment never again becomes outdated to the point of crisis.

For major expenditures like an overhaul of 911 towers or the aquatic center, a city or county would typically issue a bond for the entire amount and pay it down over a period of 25 to 40 years.

A receipt from the Kennewick WA Wal-Mart shows the sales tax rate of 8.7 cents on every dollar spent.
A receipt from the Kennewick WA Wal-Mart shows the sales tax rate of 8.7 cents on every dollar spent.

What other sales taxes are there?

Cities and counties in Washington have the option to add a variety of sales taxes for specific purposes, according to the Municipal Research Services Center.

Typically these special categories must be put before voters for approval. Taxing agencies also have the option to temporarily suspend portions of tax collection.

  • Juvenile Detention Facilities & Jails. Helps pay for juvenile justice facility needs. Only for counties with populations over 1 million.

  • Affordable Housing Sales Tax. Helps pay for affordable housing projects and programs

  • Criminal Justice Sales Tax. This is different from the Public Safety Sales Tax and is aimed at reducing involvement in the criminal justice system through programs and services

  • Cultural Access Program (CAP) Sales Tax. Benefits or expands access to nonprofit cultural programs.

  • User oriented sales tax. These are special sales tax collections only paid for by users of rental carries or ferries.

  • Zoo & Aquarium Sales Tax. Pierce County has a 0.1 cents sales tax fund for zoos, aquariums and wildlife activities.

The state also has a variety of other sales tax funds that go through its coffers rather than locally. That includes taxes for stadiums, King County’s food and beverage sales tax, distressed public facility districts, hospital zones and local infrastructure financing.

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