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Richland approved a 0.1% sales and use tax for pavement preservation and repealed the $20 vehicle license fee by a 5-0 vote. The change is expected to raise about $2.2 million to $2.5 million annually, compared with about $1 million from the current fee, and take effect January 1, 2026.
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Residents will no longer pay the $20 vehicle license fee once the new funding system takes effect. Instead, the local sales tax rate will increase from 8.7% to 8.8% to help maintain city streets, with the average household estimated to save 83% compared with the vehicle fee. The workshop also previewed a utility-billing customer portal expected to launch the week of October 27, 2025, and a preliminary 2026 budget totaling $330 million across all funds.
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