METRO Magazine Logo
MenuMENU
SearchSEARCH

Newly approved tax increase saves Washington transit agency

Pierce Transit in Tacoma, Wash., will be able to preserve its current services and financial structure thanks to a 0.3% sales tax approved by Pierce County voters.

March 1, 2002
2 min to read


Pierce Transit in Tacoma, Wash., will be able to preserve its current services and financial structure thanks to a 0.3% sales tax approved by Pierce County voters. The agency will recover a substantial portion of tax revenue that was lost when voters repealed the state motor vehicle excise tax (MVET) in November 1999. The MVET had comprised about 40% of Pierce Transit’s revenue. The agency lost the funding at the same time that its ridership had been climbing and it was preparing for expansion. Pierce Transit was forced to reduce service and start pulling from reserve funds. Bus fares and monthly bus passes were increased at the beginning of this year to help cover the cost of inflation, but the fare increases alone would not have paid for the services Pierce Transit wanted to provide over the next few years. Without additional revenue, Pierce Transit would have substantially reduced services in 2003. The sales tax increase will raise roughly $27 million annually for the agency, which has a 2002 operating budget of $63.9 million. The money will allow the agency to increase vanpools from 200 to 300, bus service by 5% to 10%, shuttle ridership by 17%, park-and-ride stalls from 4,100 to 4,950, bus stop shelters from 230 to 450 and ridership by 6%. Kevin Desmond, vice president of operations, said the immediate use of the tax revenue will be to maintain the current level of service. The long-term strategy will be to work with the public to figure out how transit planning can fit into local land use developments and new road projects. “Our focus will be on improving services for people, mainly commuters, who want a transportation alternative,” said Desmond. The initiative required only a simple majority to pass, and it received 54% of the votes. The tax will most likely be levied starting July 1, and the agency can anticipate seeing the monies in September. The tax increase will give parts of Pierce County the highest sales tax in the state — up to 8.8 cents on every dollar. Pierce Transit’s ridership was 14.6 million in 2000. The agency owns 162 buses, 137 shuttle vans for riders with disabilities and 210 vanpool vans, for 509 vehicles overall.

Topics:Management
Subscribe to Our Newsletter

More Management

METRO Magazine graphic showing passengers boarding a COTA bus at a downtown bus stop, with the headline “COTA Launches First Customer Experience Action Plan.”
Management•by Staff and News Reports•October 16, 2026

COTA Launches First Customer Experience Action Plan to Improve Transit Service

The new plan outlines improvements to service reliability, accessibility, communication, and the overall rider experience across Central Ohio's transit system.

Read More →
Crowd waiting for LA Metro bus
Management•by Staff and News Reports•October 16, 2026

LA Metro September Ridership Climbs 3.9%, Led by Rail Growth

The agency recorded more than 27.2 million boardings, with rail ridership increasing 12.4% year over year and the D Line posting the largest gains.

Read More →
Taking the Guesswork Out of Fleet Replacement
Management•by Alex Roman•October 14, 2026

Utilimarc Launches SmartReplace to Optimize Fleet Replacement Decisions

AI-powered SmartReplace helps fleets prioritize vehicle replacements, model budget scenarios, and build more defensible long-term strategies.

Read More →
Ad Loading...
A group of 2026 APTA Award recipients pose onstage with medals and trophies in front of a large APTA Awards backdrop during the awards ceremony.
Management•by Staff and News Reports•October 12, 2026

APTA Honors 2026 Award Winners, Hall of Fame Inductees at TRANSform & EXPO

Innovations in autonomous and zero-emission transportation, standout transit systems, and industry leadership took center stage among this year's honorees.

Read More →
An orientation for DRPA/PATCO interns.
Management•by Alex Roman•October 9, 2026

7 Ways to Build a Better Transit Internship Program

Lessons from DRPA/PATCO’s approach to creating a meaningful internship experience—and developing the next generation of transportation professionals.

Read More →
An overhead view of APTA EXPO's show floor.
Management•by Alex Roman•October 9, 2026

Scenes from APTA TRANSform & EXPO 2026

Transit leaders, manufacturers, and industry professionals gathered in Chicago to explore new technologies, share ideas, and discuss the future of public transportation.

Read More →
Ad Loading...
Transit Leadership is Broken...Here's Why
Management•by Alex Roman•October 8, 2026

Building Stronger Leaders, More Resilient Transit Teams

Dr. Carol Parker Walsh discusses leadership development, employee retention, workplace culture, and preparing transit’s workforce for AI and automation.

Read More →
Overhead view of the APTA 2026 EXPO show floor at McCormick Place in Chicago, with attendees walking among exhibitor booths and gathering around APTA Central.
Management•by Staff and News Reports•October 5, 2026

APTA 2026 TRANSform & EXPO Kicks Off in Chicago

After 45 years, APTA returns to Chicago with a focus on next-generation fleets, AI, connected transit networks, and the funding strategies shaping public transportation’s future.

Read More →
An MTA bus approaches a bus stop on a New York City street as passengers wait on the sidewalk, with a headline about the potential $1 billion impact of federal tariffs on rolling stock costs overlaid on the image.
Management•by Elora Haynes•October 5, 2026

New York MTA Warns Federal Tariffs Could Add $1 Billion to Rolling Stock Costs

The agency said tariffs on specialized imported components could reduce the purchasing power of its $23 billion investment in new subway cars, railcars, and buses.

Read More →
Ad Loading...
Graphic reading “From the Show Floor: 2026 APTA TRANSform & EXPO” with the APTA event and METRO Magazine logos.
Management•by Staff•October 5, 2026

From the Show Floor: What Happened at APTA TRANSform & EXPO 2026

See the latest product launches, partnerships, technology updates, and transit industry announcements from APTA TRANSform & EXPO in Chicago.

Read More →