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Bellevue City Council Considering New Sales Tax, Car Tab Hikes

by Neighbors for a Livable Bellevue

As the City of Bellevue begins planning its next two-year budget, the City Council is again considering a wave of new taxes and feesto fund transportation infrastructure.

The Transportation Benefit District formed in 2023 allows the Council to impose these new taxes and fees without a public vote. Two measures are on the table:

  • A 0.1% sales tax increase, estimated to generate $11 million per year.
  • A $20 annual car tab fee per vehicle registered in Bellevue, on top of existing state tabs and regional transit taxes. State law allows the Council to bump this to $50 over time. This will raise another $2 million a year.

Combined, that’s $13 million a year in new taxes and fees. And that’s in addition to other new revenue the City is hoping to collect from implementing paid on-street parking and expanding speed safety cameras. 

Where is your money going? 

Although the TBD is framed as a general transportation measure, more than half the money collected each year would go toward an urban park and bike/pedestrian pathways:  

  • 40% of the money ($5.2 million) would be earmarked for the Grand Connection, the city’s planned park and bicycle/pedestrian bridge over I-405, whose estimated cost has ballooned to $200-$225 million. 
  • 60% ($7.8 million) of the remaining pot would be split across general transportation needs, with $2 million of it dedicated to additional bike/pedestrian projects. That means over $7 million of the $13 million collected each year would go toward an urban park and bike/ped pathways – projects that do nothing to unclog traffic or improve general mobility in Bellevue. 

Here is the new potential breakdown discussed at the April Council workshop:

What’s next?

The Council will hold study sessions and community engagement events throughout this spring and summer, with a final vote this fall. Apart from Councilmember Jared Nieuwenhuis, there appears to be no interest on the Council in giving residents a transparent, itemized project list they can vote on.  

What can you do? 

It’s still early enough in the process to change course, so the Council needs to hear from us now. Here’s how to engage:

  • Email the City Council and ask them to send a specific, prioritized project list to the ballot for a public vote. Residents deserve to know exactly what we’re being asked to pay for. Send your thoughts to the full council at CityCouncil@bellevuewa.gov, or find individual council emails here.
  • Show up. Attend the June 23rd public hearing at City Hall, and the upcoming information sessions this summer. Ask questions and make your priorities heard.
  • Spread the word. The more residents who understand what’s being proposed, the better the conversation will be. Forward this to a neighbor, a local business owner, or anyone who drives, parks, or pays sales tax in Bellevue.