The King County Council approved a new sales and use tax Tuesday to fund services for children and families, including shelter and rental assistance, despite concerns from Councilmember Reagan Dunn about increasing taxes while the county continues efforts to strengthen oversight of public spending.
The additional tax is one-hundredth of 1%, or 0.01%, equivalent to 1 cent on a $100 taxable purchase. It is scheduled to take effect Jan. 1, 2027. The tax was authorized by the Washington Legislature earlier this year and can be imposed by a county or city legislative body to provide additional services for children and families.
Revenue from the tax can be used for child care, perinatal support services, before- and after-school programs addressing mental, social and physical health, workforce capacity building, shelter and rental assistance, and client transportation. Under the ordinance, proceeds will be deposited into King County’s Housing and Community Development Fund, with specific allocations determined through the county’s budget process.
The ordinance, sponsored by Councilmembers Jorge L. Barón and Rod Dembowski, points specifically to homelessness among families as a reason for the additional revenue. According to findings included in the legislation, 1,959 children younger than 18 and 1,555 parents were experiencing homelessness in King County in 2024, while approximately 900 emergency shelter beds were available for households with adults and children.
The council determined that additional funding for shelter and rental assistance for families with children would benefit county residents. Although the ordinance establishes the eligible uses of the tax revenue, it does not provide a detailed program-by-program spending plan. Those decisions are expected to be made through the county’s budget process.
Dunn criticized the council’s decision to impose the tax without seeking voter approval and tied his opposition to concerns about affordability and the county’s management of public funds.
“Families Across King County are being squeezed by the high costs of housing, groceries, and fuel. At the same time, the county has had to take repeated steps to address waste and fraud in its own spending. The difficult truth is that raising taxes will not make life more affordable. Before asking King County families to once again pay more, we ought to get our own house in order.”
Dunn’s concerns come as the county has taken several steps to strengthen oversight following investigations into contracts administered by the King County Department of Community and Human Services.
A review overseen by the King County Office of the Ombuds examined compliance concerns involving 19 community organizations with contracts connected to four DCHS youth and diversion programs. According to county materials, the review identified nearly $700,000 in questionable costs across 16 of the 19 organizations examined. The concerns followed a 2025 county audit that identified problems with DCHS contract oversight and financial controls.
The findings prompted broader changes to county oversight. In July, the council approved the creation of an Inspector General Division within the Office of Public Complaints. The new division is intended to investigate reports of financial fraud and abuse, with authority to issue subpoenas and pursue recovery of misspent public funds.
The council has also approved stronger financial controls, risk assessments, contractor training and monitoring requirements for county-funded grants. A supplemental budget approved in June included $600,000 to fund the new Inspector General Division and a hotline for reports of suspected fraud, waste and abuse, along with $250,000 for DCHS to obtain outside assistance with contract management and fiscal compliance improvements.
Those oversight issues are separate from the new sales tax and do not establish that revenue from the tax has been improperly managed. The tax revenue has not yet begun to be collected. Dunn cited the previous findings as part of his argument that the county should address its financial oversight before imposing an additional tax.
Under the ordinance, proceeds from the tax must be used for services authorized under state law that assist children and their families. The council intends to use the county budget process to determine how the revenue is allocated among eligible programs.
The tax will be added to existing sales and use taxes imposed in King County. If a city within King County imposes the same state-authorized tax, the county must provide a credit to prevent the combined city and county rate under the program from exceeding 0.01%.
The new tax is scheduled to take effect Jan. 1, 2027.
