The proposal included a property-tax increase of 20 cents per $1,000 of assessed value and a 1.5% utility-earnings tax on natural gas, electricity and phone utilities. Tacoma estimated the combined cost for an average homeowner at about $10.43 per month, or $125.16 per year. Qualifying residents would remain eligible for senior and disability property-tax exemptions.

What the proposal would fund

Planned work included arterial maintenance, neighborhood street paving and pothole repairs, sidewalks, Americans with Disabilities Act access, safe routes to school, trails and traffic-calming projects. The city’s allocation framework put about 50% toward safer major streets, 26% toward neighborhood streets and 24% toward improved connections.

The Tacoma City Council adopted an updated resolution sending the proposition to the Pierce County Auditor. If approved by a simple majority, the utility-earnings tax increase would take effect Jan. 1, 2027. The city’s public Connect Tacoma page does not report whether Proposition 1 passed or failed. The next step is the release and certification of official election results.

Proposition 1, called Connect Tacoma: Safe Streets and Sidewalks, would increase the city’s utility earnings tax by 1.5% on natural gas, electric and telephone utilities. It would also add $0.20 per $1,000 of assessed property value to the city’s regular property-tax levy.

What Proposition 1 would do

If approved, the utility-tax increase would take effect Jan. 1, 2027. The property-tax increase also would begin with 2027 collections and remain in place for 10 years. Resolution 41894 uses the 2027 levy amount as the basis for levies through 2036.

Resolution 41894 sets a maximum regular property-tax levy rate of $1.95 per $1,000 of assessed value for 2027 collections. That maximum rate is part of the ballot measure; it is not a guarantee of what every property owner’s future bill would be. Actual property-tax impacts can vary with assessed value and levy calculations.

The city estimates the measure would generate approximately $200 million in local revenue over the 10-year period. It also estimates that the funding could help leverage about $120 million in grants and partnership funding. Those outside dollars are potential funding, not guaranteed revenue.

Where the money would go

The proposal would support neighborhood streets, arterial safety, pothole repairs, paving and other maintenance work. It also would fund sidewalks, Americans with Disabilities Act access improvements, school routes, traffic calming, trails, greenways and other multimodal connections.

The listed categories describe how the city would prioritize investments if the measure passes. They do not mean that every individual street, sidewalk, trail or safety project has already been approved, scheduled or funded.

How this differs from the 2025 proposal

The measure follows a streets proposal that Tacoma voters rejected in 2025. The earlier proposal was permanent and called for higher tax rates: a 2% utility-earnings-tax increase and a $0.25 property-tax increase per $1,000 of assessed value, according to The News Tribune.

The current measure would last 10 years and uses a revised funding structure focused on neighborhood streets, arterial safety and improved connections. Resolution 41894 also supersedes and replaces Resolution 41890, an earlier ballot-referral resolution. The two resolutions are not separate active measures.

Estimated household cost

The city’s resolution estimates that the utility-tax increase would cost a typical household about $23.64 per year, or $1.97 per month. For an average homeowner with a $508,000 assessed value, the property-tax increase is estimated at $101.52 per year, or $8.46 per month.

A household that fits both examples would face an estimated combined increase of about $125.16 per year, or $10.43 per month. Actual utility costs would vary with usage and the types of services in the household. Property owners’ costs would vary with assessed value, and qualifying seniors, disabled veterans and other eligible residents may qualify for property-tax exemptions under state law.

How to vote

Proposition 1 appears on Tacoma’s Aug. 4, 2026, primary ballot. Ballots must be returned by 8 p.m. that day. Pierce County election materials provide information about ballot drop boxes, voting locations and registration deadlines.

The measure remains a proposal until election results are reported and certified. Pierce County’s election materials list certification for Aug. 18.

Sources

• Tacoma City Council Resolution 41894
• Pierce County Official Local Voters' Pamphlet
• The News Tribune: Tacoma's streets levy