Nickels proposes $1.8 billion in road taxes

Mayor Greg Nickels today proposed a $1.8 billion tax increase to pay for Seattle's backlog of street, bridge and sidewalk repairs, plus a host of transit, bike path and safety improvements.

Nickels' package would be funded through a mix of increased property taxes, new taxes on commercial parking lots and an employer tax, which would be based on the number of employees who work at companies and organizations in Seattle.

If approved by the City Council, the mayor's proposed property tax increase would go to voters for their approval in November. The new parking and employer taxes could be imposed without voter approval.

The levy would cost the owner of a typical Seattle home $195 during the first year. The levy would grow at the rate of construction inflation, but would be capped at a 5 percent increase per year.

The new parking tax would collect 10 percent of the revenues charged by commercial lots and garages. Under the proposal, the tax would be collected by lot and garage operators at the time a driver pays for parking and later remitted to the city. City officials expect the parking tax to be added to existing rates.

On-street and residential parking would be exempt.

The new employee tax would charge companies and organizations $25 a year for every full-time employee who does not use public transit. Small companies and organizations — those that report gross income under $50,000 a year — would be exempt from that tax.

Both of the new taxes would be permanent. Property taxes would be increased under a 20-year levy lid lift.

City officials cannot estimate exactly how much they would collect from those new taxes. But they estimate the mayor's package would raise and spend roughly $1.8 billion over 20 years.

Nickels announced his plan, called "Bridging the Gap," at a press conference this morning. It is intended to catch up with the city's $500 million maintenance backlog. It also aims to keep up with the city's mounting need for paving and basic repairs to streets, sidewalks and bridges.

It includes fixes ranging from new traffic signs and guardrails to new trees and increased street cleaning. It would pay for improved "bus rapid transit" service in three corridors: Aurora Avenue North, the Ballard corridor along 15th Avenue Northwest and Elliott Avenue, and the West Seattle Corridor along Fauntleroy Way Southwest and Alaskan Way South.

In its first full year, Nickels said the package would generate $65 million. That money would go to:

— $19 million for paving roads.

—$13.9 million for transit, freight and pedestrian corridors.

—$13.5 million for bridges.

—$6 million for signs, signals, guardrails and other safety improvements.

—$5.7 million for pedestrians and bike improvements.

—$2.5 million for sidewalks, trails, walkways and stairways.

—$2 million for trees and landscaping.

—$1.9 million for neighborhood services.