Lacey City Council agrees on sales tax election date

After months of discussion, Lacey City Council has agreed that Feb. 14, 2017 will be the date that Lacey voters decide whether to approve a local sales tax increase for a transportation benefit district.

The council already has formed the transportation benefit district, but now it needs a funding mechanism. The council will be asking voters to support increasing the local sales tax to 8.9 percent from 8.7 percent. If approved, the district tax would remain in place for 10 years, raising about $1.6 million annually to help fund road improvements.

Olympia and Tumwater also have transportation benefit districts. Olympia funds it with vehicle tab fees while Tumwater recently approved a sales tax increase.

Lacey Finance Director Troy Woo said if voters approve the increase in February, the increased sales tax would take effect in July 2017.

Although the council agreed on a special election date during its Thursday work session, it likely will come before the council at a later date for an official vote.

This story was originally published June 17, 2016 at 10:29 PM with the headline "Lacey City Council agrees on sales tax election date."