Planning to build in Thurston County? Expect to pay higher permit fees next year
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Thurston County works to close 2026 budget deficit
Thurston County commissioners are deciding how to close an estimated $36 million budget gap in the general fund, the county’s primary operating fund, for 2026.
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People who apply for Thurston County land-use or building permits can expect to pay higher fees in 2026.
The Board of County Commissioners has approved a resolution to increase land-use and building permit fees.
Permit reviews ensure projects comply with zoning, subdivision, environmental and building safety standards, Community Planning and Economic Development (CPED) Director Ashley Arai said.
The current fee structure has not been “comprehensively updated” since 2009, Arai said, and does not cover the full cost of permit-related services. As a result, she said the county’s general fund has been subsidizing several of those costs. The increases are intended to cover the actual cost of providing permitting services, she said.
This year, the board has been facing a $36 million deficit in the 2026 general fund, the county’s primary operating budget. The board decision to approve the fee hike is part of a series of measures to whittle away at the deficit and balance the budget.
“These changes are expected to reduce the general fund reliance by roughly $1 million within our department, saving up to 10 permit review positions in CPED,” Arai said. “We’re also hoping it will provide applicants with greater cost clarity (and) create a sustainable, stable funding model that supports staff capacity and timely permit reviews in the future.
“We also have engaged local builders and developers who, although no one wants to see fees go up, have expressed support for any efforts that would improve predictability in our permit reviews.”
In addition to a full cost recover model, the county will transition from an hourly billing model to a model with one-time, up-front land use fees, according to county documents.
The county also plans to reset the floor for building fees using 2025 data, and collect funds required for streamflow mitigation projects.
Lastly, the county plans to introduce new options for expedited permit reviews and project consultations if applicants are willing to pay extra.
The board approved a second resolution that adds a 5% technology fee to all applicable permits and applications. This fee is intended to support a permitting and records management system. This system will be used by CPED as well as Environmental Health within the Public Health and Social Services department and Development Review within the Public Works department.
As a result of these changes, the county estimates that base building permit fees for a 2,000-square-foot home will increase from about $2,600 to $3,900 — a 50% increase.
Arai said staff have been giving people a heads-up as they’ve been coming into the county’s Building Development Center (BDC) at The Atrium.
County documents also indicate there are plans for website updates, social media announcements, email outreach, standardized permit notifications and information handouts so that the public is aware of the increased cost.
Commissioner Wayne Fournier told Arai he appreciated staff’s work to update the fee structures.
“We talked about this several times, and what I hear is you are ensuring that we are capturing the costs of doing business from the developers that are proposing that that business go on and that we not use property taxes that we collect from everyone else to subsidize that developer’s request,” Fournier said. “That sounds appropriate to me.”
Commissioner Tye Menser said he appreciates that the higher costs are accompanied by improvements to the permitting process.
“Like you say, nobody wants to pay a higher fee, but there are a whole series of elements to this that hopefully will create an overall smoother and more predictable system,” Menser said.
This story was originally published November 3, 2025 at 5:00 AM.
