Tacoma: Implementation of Transportation Impact Fees to Begin on June 1

~ Tacoma, WA - The City of Tacoma is taking a significant step towards creating a safer, more connected, and equitable transportation network by implementing transportation impact fees starting June 1, 2026. This move was authorized by the City Council through Ordinance 29082 in late 2025 and aims to assess a one-time fee on new residential, commercial, and industrial developments. The fees will help support the infrastructure needed to accommodate new growth and reduce the financial burden on existing taxpayers.

At-Large Council Member Kristina Walker, who also serves as the Chair of the Infrastructure, Planning, and Sustainability Committee, expressed her excitement for the program's implementation this month. She stated that after careful consideration and tailoring to fit the community's needs, transportation impact fees will become part of the diverse ecosystem of funding used to bring large infrastructure projects to life. Most importantly, these fees will help implement Tacoma's newly adopted Transportation and Mobility Plan while ensuring that existing residents are not disproportionately burdened by new growth.

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With an expected population growth of 1.6 million people by 2050 in the region, Tacoma is facing increasing demand on its local transportation network. The revenue generated from transportation impact fees is projected to be approximately $16 million annually or an estimated $164 million over the next decade. This dedicated revenue stream will allow the City to fund critical transportation expansion projects without relying on limited General Fund resources. The funds will be directed towards projects identified in the City's Capital Facilities Program and guided by its Equity Index.

To ensure that transportation impact fees promote sustainable growth without hindering housing affordability or vital community services, there are several key exemptions and reductions in place. These include an 80 percent fee reduction for qualifying low-income housing developments with a recorded covenant ensuring long-term affordability (RCW 82.02.060), an 80 percent reduction for early learning facilities where at least 25 percent of children qualify for state-subsidized childcare (RCW 82.02.060), a 50 percent reduction for qualifying multifamily projects near major transit stations (RCW 82.02.060), and full exemptions for alterations, renovations, or replacements of existing structures that do not add new dwelling units or expand usable commercial space.

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The City's Public Works Department will track the program's success and report to the City Council annually to ensure transparency and accountability. These reports will detail revenue collected, project delivery milestones, and geographic equity outcomes to verify that the funds are directly benefiting the community as intended.

Developers and property owners planning new projects are encouraged to review the fee structures prior to the June 1 implementation date. All details on the program, including fee schedules and exemption applications, can be found on the City's website.

With transportation impact fees in place, Tacoma is taking a proactive approach towards managing its growth while creating a more accessible and connected community for all its residents. The City is committed to using these funds responsibly and ensuring that they benefit the community as a whole.

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