The Bellevue City Council has picked a 0.1% sales tax for transportation as its funding approach for the next two-year budget, and it left out a new car tab fee. On November 3, councilmembers voted 5–1 to put the option, called “option 2b,” into the 2027–2028 budget package. The final budget vote is set for November 17.
Councilmember Jared Nieuwenhuis voted no. Councilmember Naren Briar was absent.
What Option 2b Includes
Under option 2b, the city’s Transportation Benefit District would collect a 0.1% sales tax for 10 years, and the money could only go to transportation. The option does not include the $20 annual vehicle registration fee that was part of a separate scenario, option 3. The city estimates the sales tax would bring in about $11 million a year.
Option 2b is a hybrid that came up at the Nov. 3 meeting. Councilmembers weighed it against the three scenarios in the preliminary budget, which DBN covered in September: a baseline with no new revenue, the sales tax by itself, and the sales tax plus a car tab fee.
Who Would Pay
A sales tax applies to purchases made in Bellevue, whether the buyer lives in the city, works there or is visiting. The city estimates Bellevue households would pay about 30% of the total. The sales tax is one of the funding tools the city lists as council-approved options. Bellevue formed the Transportation Benefit District in July 2023, but the district has never been funded.
What 0.1% Means at the Register
Bellevue’s combined sales tax rate is 10.3%, according to the Washington State Department of Revenue. That’s 6.5% for the state and 3.8% in local taxes. The transportation tax would raise the rate to 10.4%, or 10 cents more for every $100 spent.
What the Money Would Fund
The new revenue would grow the transportation department’s long-term Capital Investment Plan, which is part of the city’s proposed $1.3 billion six-year capital plan. The city says the money would pay for projects that expand the transportation network, improve safety and neighborhood mobility, and provide access to regional transit.
The city’s district materials list five program areas: Vehicle Mobility, Pedestrian and Bike Mobility, Neighborhood Mobility, Major Projects, and Preservation and Reconstruction. Examples include new sidewalks, speed bumps and flashing crosswalks. The materials also list construction of the Grand Connection Crossing, the planned pedestrian and bicycle bridge over I-405 between Downtown Bellevue and Wilburton. Construction is targeted to start in 2028, with delivery in 2031.
The city is still working out how to split the money between the program areas and the Crossing.
What Comes Next
Councilmembers are scheduled to take final action on the 2027–2028 budget, including the transportation sales tax, on Nov. 17. The city’s materials don’t give a date for when the tax would start.










