Politics
Downtown Core Sales Tax Referendum Sets 2027 Start Date for Local Projects
Downtown Core residents face a November 2026 vote on a 0.5 percent sales tax increase that would take effect in January 2027 and fund housing and transit work through 2030.
How we reported this
The Downtown Core Community Investment Referendum proposes a half-percent increase in the local sales tax to generate funds for affordable housing construction and transit upgrades. The measure would apply to all taxable purchases within city limits starting in January 2027 if approved by voters in the November 3, 2026 election. City records show the tax would raise an estimated 42 million dollars annually based on current retail sales data.
Local government documents released in June 2026 indicate the referendum was placed on the ballot after the city council approved a funding gap analysis for the 2025-2030 capital plan. The analysis identified shortfalls in the housing trust fund and the municipal transit authority budget that current property tax revenues cannot cover. Policy analysts note the timing aligns with the expiration of a prior temporary levy that ended in December 2025.
Timeline for When Changes Reach Residents
Voters will decide the measure on November 3, 2026. If it passes, the tax rate change appears on receipts beginning January 1, 2027. Construction contracts for the first housing sites at 12th and Maple streets and transit signal upgrades along the core corridor would be awarded by March 2027, with work visible to commuters by summer 2028. The legislation states all projects must reach substantial completion by December 2030.
Households in the 15 census tracts that make up Downtown Core would see the tax apply at checkout for groceries, clothing and restaurant meals. A household spending 800 dollars monthly on taxable goods would pay an additional 48 dollars per year under the new rate. The city budget office projects 1,200 new housing units and 18 miles of improved bus lanes if collections meet forecasts.
Next Steps After the Vote
City clerks will certify results by November 20, 2026. The finance department then updates point-of-sale systems for all registered retailers by December 15. Residents can review quarterly spending reports on the city website beginning April 2027. The measure requires an independent audit every two years through the 2030 completion date.