The Seattle City Council has recently approved the 2024 budget, with a close vote of 5-4. The proposal for implementing transportation impact fees on commercial real estate development for new housing was ultimately rejected. This decision was made in an effort to alleviate the burden on developers and provide an alternative solution to increasing property taxes.
Despite being a commonly used practice in other cities within Washington, concerns were raised about the potential consequences of enacting these fees. It was feared that this could further drive up housing costs and hinder development efforts in a city already facing a shortage of affordable housing.
This controversial vote bypassed normal procedures and was pushed through by departing council members. However, it does not completely eliminate the possibility of implementing transportation impact fees in Seattle’s future plans.
Since 2014, there have been ongoing discussions about introducing these fees into Seattle’s policies. If implemented successfully, it is estimated that they could generate anywhere from $200 million to $750 million over a span of ten years.
