Tacoma City Council Study Session – April 28, 2026: Legislative Update, Home in Tacoma One-Year Review, and Film Task Force Proposal
Tacoma City Council Study Session – April 28, 2026
The Tacoma City Council held a study session on April 28, 2026, starting at 9:15 AM. The meeting covered a legislative update from the 2026 state session, a one-year review of the Home in Tacoma zoning initiative, and a proposal to sponsor a community-led film task force. No formal votes were taken; the council discussed and expressed support for the film task force proposal.
Discussion Items
2026 Legislative Update
Senior Government Relations Advisor Alex McBain and state lobbyist Brianna Murray presented an overview of the 2026 legislative session. The session was challenging, with over 1,200 bills introduced and 268 passed, set against a large state budget deficit. Key outcomes included:
- Millionaires Tax: Historic legislation imposing a 9.9% levy on adjusted gross income above $1 million per year, effective January 2028, with exemptions for businesses under $300,000 gross income and sales tax on certain items. The bill includes an emergency clause but faces legal challenges and potential ballot initiatives.
- City Priorities: The city’s legislative priorities (response to federal government, fiscal sustainability, capital request for a trickling filter at the wastewater treatment plant, and three identified issues: wastewater nutrient regulation, route jurisdiction transfer, and infrastructure funding/sidewalk utility) were addressed. The capital request secured $1.7 million for the North End treatment plant trickling filter. Other capital investments included $2 million for the Museum of Glass HVAC system and $924,000 for planning the Tacoma-Pierce County Health Hub.
- Fiscal Sustainability: Most state-share revenues were preserved. A local government flexibility bill passed, allowing a 0.1% sales tax for child care, expanded use of housing sales tax funds, and other measures. However, a diversion from the Public Works Assistance Account may impact future projects, and sales tax exemptions from the millionaires tax will reduce city revenue. The state budget includes $200 million for local mitigation, but it may not fully offset impacts.
- Immigration and Detention: Several bills passed, including worker protections (HB 2105), increased penalties for impersonating law enforcement (HB 2165), and driver privacy protections (SB 6602). Bills authorizing fiscal penalties for private detention facilities refusing state health department access did not advance.
- Route Jurisdiction Transfer: A bill to level the playing field with WSDOT passed the House but stalled in the Senate. Next steps include engaging Transportation Committee legislators.
- Sidewalk Utility: A statewide study continues, with Tacoma participating in a case study. The consultant is exploring options including a sidewalk utility, sales tax district, and modified stormwater fee. A final report is expected summer or fall 2026.
- Next Steps: The city will continue engaging with legislators, plan a tour of the North End wastewater treatment plant, and track the millionaires tax developments. The 2027 legislative agenda development process will begin in summer 2026.
Home in Tacoma One-Year Review
Planning and Development Services Assistant Director Ryan Goudet, along with managers Philip Gow, Robin Bolster-Grant, and Chris Seaman, presented the first-year report on the Home in Tacoma initiative, which launched February 1, 2025. Key findings:
- Permit Activity: In the first year (February 2025 to January 2026), there were 385 units proposed and 213 applications submitted, a 62% increase in units and 39% increase in applications compared to the prior five-year average (250 units, 150 applications).
- Housing Diversity: The share of single-family units decreased, while townhouses, duplexes, ADUs, and multiplexes increased significantly. The initiative is adding more units per application.
- Geographic Distribution: Development is spread across the city, with 20% on the east side and 20% in the south end—areas historically under-resourced.
- Challenges: Developers reported issues with nomenclature (e.g., “houseplex” vs. “townhouse”), front garage limitations, utility placement, and lot subdivision processes. Community members expressed surprise at projects being processed administratively without public notice.
- Staff Adjustments: Director’s rules have been issued to address utility service, front-facing garages, and group housing. The city is working to reduce friction while maintaining policy goals.
- Affordability Bonuses: No developers have yet used the affordability bonuses (additional units for income-restricted units). Staff noted that high financing costs and market uncertainty may be factors.
- Future Steps: The council will hold a study session on middle housing pilot in late June 2026. Staff will begin quarterly reporting on completed projects, and state mandates will require updates to subdivision processes. The council will consider whether to initiate a broader Home in Tacoma code update process.
Tacoma Film Task Force Sponsorship
Councilmember Scott proposed a $10,000 allocation from the council contingency fund to support the Grand Cinema’s Film Task Force. The task force would be community-led and focus on developing recommendations for code and permitting updates, enhancing local film project connectivity, and other initiatives. Key points:
- Tacoma issued only 11 film permits in 2025, compared to Seattle’s 360 permits, which supported 4,000 local crew and cast members.
- The city’s motion picture code has not been updated since 1992; Councilmember Scott will work with staff to update it.
- The task force would provide input to the city on streamlining permitting and code changes.
- Councilmembers expressed strong support, noting the economic development potential and connection to Tacoma’s arts community and sister city programs. No formal vote was taken, but the council indicated approval; the request will likely be brought to a future council meeting for a vote.
Key Outcomes
- No formal votes were taken during the study session.
- The council discussed and broadly supported the film task force proposal; a formal vote on the $10,000 contingency fund request is expected at a future council meeting.
- Legislative update and Home in Tacoma review were informational; staff will continue work on identified next steps, including quarterly reporting on Home in Tacoma, engaging legislators on fiscal sustainability, and preparing for the 2027 legislative session.
- The council will hold a study session on the middle housing pilot in late June 2026.
Meeting Transcript
I'd like to call to order the city council study session of April 28th, 2026. Clerk, please call the roll. Deputy Mayor Bushnell. President. Councilmember Diaz. Absent Councilmember Heinz. Councilmember Palmer. Councilmember Rumba. Here. Councilmember Sidalgay. Absent Councilmember Scott? Councilmember Walker? Mayor Ibsen. Here. We have one agenda modification. Item number four, Pierce County Flood Control, Zone District Advisory Committee appointment, and that will be discussed at a later time. Our first agenda item is our 2026 legislative update. I'd like to call on senior government relations advisor Alex McBain to begin the presentation, and Brianna Murray from Gordon Thomas Honey was also present. Thank you and uh uh appreciate the ability to give this presentation. Very happy that Brianna um from our state lobbyist is here. Her team does so she and her team do so much to help us. Uh so and she'll be here to help answer any questions. Um forward on the slide. So um I wanted to start with a quick review of the process we use to develop the 2026 uh legislative agenda, in part because we'll be beginning that process shortly here for the 2027 uh legislative agenda. So um last summer through the fall and summer uh we had discussions about issues and priorities with individual uh council members based on those conversations and other issues that were before council, we crafted drafts of the legislative policies or legislative priorities and the policy doc the policy positions documents. Um we followed up with two study sessions where we discussed those priorities and policies. Um and then finally in November, the council formally adopted the state legislative priorities and the policy positions document. Um we'll talk a little bit more about those uh policy position those priorities when we get into the discussion of the outcomes, but just quickly, the priorities for this last session were response to the federal government, fiscal sustainability, we had a capital request for a trickling filter at the wastewater treatment plant, and then we had identified three issues, or you had identified three issues of importance. One was wastewater treatment plant nutrient regulation, route jurisdiction transfer, and then the issues around infrastructure funding and sidewalk utility. Uh the policy positions document was a longer uh document that identifies policy priorities and the government relations office uses that as a guide for advocacy work in the fast-paced session. Um with the priorities identified, um the we began the work of um connecting with our legislative delegation in addition to individual discussions with uh individual delegation members in December prior to session, we had a briefing on the city's priorities with our legislative delegation members, and then it followed up with a dinner in Olympia um with our uh delegation members in February. Um debrief, I would just say the uh March 12th um marked the very end of a very challenging session. Um there were more bills introduced than um than a normal uh second year session, so it was very active. There were over 1200 uh new bills introduced, and then 268 bills were passed. There were the major themes in the session were response to federal government and tax structure reform, and all of that was with the large state budget deficit as the sort of backdrop of the entire session. Um in terms of the tax structure um reform, um, we wanted to highlight that there was historic legislation in the form of millionaires tax that was unveiled by House and Senate leaders and the governor at the very start of session, and that took a lot of bandwidth out of the uh throughout the session. Uh the taxes and 9.9% levy on adjusted gross income uh above one million dollars per year that would take effect in January 2028. The major features include funding to expand the working tax uh working families tax credit, five percent of the proceeds would support the fair start for kids, which is supporting child care and early learning programs. There was a series of tax changes, including implementing exemptions for businesses under 300,000 gross income from BO, eliminating sales tax on many over-the-counter drugs, diapers and certain personal care products, and then rolling back some of the sales tax services that were sales tax on services that were enacted in 2025. The bill did include an emergency clause, so it wasn't eligible for a referendum, but there are legal challenges forthcoming, and it will likely be the subject of a ballot initiative. In terms of the city's legislative priorities, I'll start with the response to the federal government and immigration and detention issues. Around immigration and detention, there were a slate of immigration detention related bills that were introduced and then our Tacoma elected officials testified five times on many on these bills. And then I just highlight the these bills that did pass. The first was HB 2105 regarding uh immigrant worker protections, 2165, which increases the penalties for impersonating law enforcement, SB 5855, which protects uh prohibits law enforcement from wearing masks, and then uh SB6602, which uh concerns driver privacy protections. Um in terms of the fiscal sustainability, um, because of the state's large budget deficit, there was a focus on encouraging the ledge to um sustain historical um revenue sharing partnerships between state and local government, and then to support proposals that would provide local governments with sustainable, progressive, and equitable tax system, including new revenue tools and flexibility with uh existing revenues. Um, some of the better news related to the outcomes on the fiscal sustainability were most of the state share revenues were preserved with some minor exceptions. Um there was the legislature did pass uh the a local government flexibility bill that provides additional flexibility around existing revenues and additional sales tax authority. Uh it included a one-tenth of a percent councilmatic sales tax uh for child care perinatal support before and after uh school use services. It provided some flexibility with housing sales tax, the HB 5990 funds. It expands the usage of REIT 2 to um revenues to include nuisance abatement.
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