Olympia's sales tax will go up July 1 to fund affordable housing

Shoppers in Olympia will see a higher sales tax rate starting July 1 after voters approved the increase to fund affordable housing.

The 0.1 percent increase brings Olympia’s sales tax rate to 8.9 percent, the same rate as in Lacey and Tumwater.

In February, Olympia voters passed the Home Fund measure to raise more than $2 million a year for affordable housing and related services. The city hopes to build or renovate nearly 350 housing units in the next decade with the help of public and private partners and about $4.5 million a year in matching funds.

Groups will apply for grants from the city to build and operate apartments, shelters, and mental and behavioral health programs. All projects would have to be approved by the City Council.

This story was originally published June 21, 2018 at 3:32 PM with the headline "Olympia's sales tax will go up July 1 to fund affordable housing."