The Metropolitan King County Council approved a small sales tax increase Tuesday, boosting the rate to increase emergency shelter options for homeless children and families.
The 0.01% tax increase raises taxes by one penny on a $100 retail purchase, or about $4 per year for the median taxpayer.
It would raise a maximum of about $10 million a year for the county, for the next three years.
The council can increase the tax without a vote of the people because the state Legislature, earlier this year, gave local governments authority to pass the small tax increase for childcare, shelter, youth services, after-school programs and similar services.
But the Legislature didn't get much more specific than that, and the legislation passed by the council Tuesday says only that the new revenue will be used for the purposes the Legislature stipulated.
Councilmember Jorge Barón said that he intends for the funding to go toward shelter and rental assistance, but that the money's ultimate destination would be determined during a later budget process.
The legislation provides the Executive broad authority to determine how proceeds resulting from the sales and use tax would be allocated," council staff wrote in summary.
County Executive Girmay Zahilay was anticipating the passage of the tax when, last month, he announced plans for new affordable housing, tiny home and shelter projects.
The Legislature also gave cities the option to impose the same tax. If individual cities in King County choose to do so, that amount would be subtracted from the county's revenues, so the tax would not be charged to consumers twice.
The tax, when it takes effect Jan. 1, will bring the sales tax in Seattle to 10.56%, among the highest in the nation.
Barón noted that there were significantly more homeless children in King County than there are shelter beds available for families.
"I recognize that this tax may be an imperfect tool, but it's the only tool that we have now to open these beds," he said. "I do believe it is important to act urgently when you have children and families unsheltered in a community like ours."
The vote was 6-3 in favor of passing the tax, with Councilmembers Reagan Dunn, Sarah Perry and Pete von Reichbauer opposed.
Dunn noted that the council has more often been getting permission from the Legislature to raise taxes rather than asking for a vote of the people, including for a roads measure this summer and for Harborview Medical Center two years ago.
"Families across King County are being squeezed by the high costs of housing, groceries, and fuel," Dunn said in a prepared statement. "At the same time, the county has had to take repeated steps to address waste and fraud in its own spending. The difficult truth is that raising taxes will not make life more affordable.
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