Title
Approval of an Ordinance Imposing the Councilmanic Public Safety Sales and Use Tax authorized by HB-2015 of One-Tenth of One Percent (0.1%)
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve on second reading, an ordinance imposing the Councilmanic Public Safety Sales and Use Tax authorized by HB-2015 of One-Tenth of One Percent (0.1%).
Report
Issue:
Whether to approve on second reading, an ordinance imposing the Councilmanic Public Safety Sales and Use Tax authorized by HB-2015 of One-Tenth of One Percent (0.1%).
Staff Contact:
Mike Githens, Finance Director, 360.753.8465
Presenter(s):
None - Consent Calendar item.
Background and Analysis:
There were no changes between first and second reading. In 2025, the Washington State Legislature enacted HB-2015, establishing two new funding pathways for cities and counties to support public safety initiatives. The law, which became effective on July 27, 2025, created a three-year, $100 million grant program aimed at hiring, retaining, and training police officers and co-responders. It also authorized a new councilmanic 0.1% local sales and use tax for broad public safety and criminal justice purposes.
While the grant program and the councilmanic tax are separate funding tools, HB-2015 requires jurisdictions to meet specific policy and training standards to be eligible for either. A city council may implement the 0.1% sales tax without applying for or receiving grant funds; however, the jurisdiction must still satisfy the grant’s policy and training requirements to impose the tax. Additionally, to qualify for grant funding, a city must have received funds from or authorized at least one of three public safety sales taxes-two existing options and the new tax created under HB-2015.
The City of Olympia currently imposes both the Criminal Justice Sales Tax and the Public Safety Sales Tax, thereby meeting the eligibility criteria for the grant program and the new councilmanic tax. In August 2025, the City Council was briefed on HB-2015 and its implications, including the opportunity to implement the new 0.1% sales tax pending review by the Criminal Justice Training Center.
On September 30, 2025, the City Manager presented updated budget assumptions and projected general fund revenues, estimating that the proposed 0.1% increase would raise Olympia’s total sales tax rate to 9.9% and generate approximately $3 million annually. Following this presentation, the City Council directed staff to proceed with the implementation of the councilmanic Public Safety Sales Tax authorized under HB-2015.
This resolution formalizes the Council’s intent to adopt the 0.1% councilmanic sales and use tax, contingent upon successful review by the Criminal Justice Training Center and completion of any required administrative steps. The additional revenue will be dedicated to enhancing Olympia’s public safety infrastructure, including staffing, training, and community-based response programs.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
Sales taxes are considered regressive because they apply uniformly to most necessary household expenditures. A higher sales tax may burden lower-income households who already spend a larger portion of their income on such purchases.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances and fiscal governance.
Financial Impact:
It is estimated that a sales tax of .01% will generate approximately $3 million per year in a full fiscal year.
Options:
1. Move to approve on first reading, and forward to second reading, an ordinance imposing the Councilmanic Public Safety Sales and Use Tax authorized by HB-2015 of One-Tenth of One Percent (0.1%).
2. Move to approve on first reading, and forward to second reading, an ordinance imposing the Councilmanic Public Safety Sales and Use Tax authorized by HB-2015 of One-Tenth of One Percent (0.1%) with modifications.
3. Do not approve an ordinance imposing the Councilmanic Public Safety Sales and Use Tax authorized by HB-2015 of One-Tenth of One Percent (0.1%)
Attachments:
Ordinance