Lacey City Council Maintains 9.7% Sales Tax Rate Amid Compliance Issues
The Lacey City Council has decided to maintain the sales tax rate at 9.7% while addressing compliance issues related to House Bill 2015, which could provide funding for public safety. Mayor Andy Ryder highlighted the importance of resolving these compliance matters with state officials before exploring new revenue options, as the city faces an estimated $1.5 million increase in costs by 2027. The council may reconsider funding strategies if compliance is achieved before the June 30, 2028 deadline.
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The City of Lacey's sales tax rate will remain at 9.7% as the city council focuses on state compliance before pursuing public safety funding. During a January 27 work session, officials noted over 25 agencies, including Thurston County, received noncompliance letters under House Bill 2015, which offers a 0.1% sales tax option and a $100 million hiring grant for police.
Mayor Andy Ryder emphasized the need to resolve compliance issues with state lawmakers and the Attorney General's Office first. Lacey Police Chief Robert Almada indicated the department meets seven of ten required compliance categories, with full compliance estimated to require 1,000 staff hours.
Without new revenue, Lacey faces an estimated $1.5 million in additional costs by 2027, driven by state public defense mandates. A proposed 0.1% sales tax could generate $1.86 million annually. The council may revisit funding options if compliance barriers are addressed before June 30, 2028.
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