The Seattle City Council authorized broader taxing authority for transportation projects and raised the tax on paid parking lots by 2.5 percent Monday.

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The Seattle City Council authorized broader taxing authority for transportation projects and raised the tax on paid parking lots by 2.5 percent Monday.

The city will use the additional $5.4 million a year in parking-tax revenue to help pay for its portion of the Mercer Street project and the replacement of the sea wall on Elliott Bay.

The council established a citywide taxing district, allowing it to ask voters for sales- and property-tax increases, tolling on local roads, and up to $80 more in annual car-tab fees. The council agreed to convene an advisory committee to look at transportation projects and recommend which taxes the council should try to raise. Using the taxing district, the council intends to raise car tabs by $20 a year. That increase does not require a public vote.

The city has a $500 million backlog in transportation projects, plus a $20 million shortfall in the Department of Transportation budget.