Thank you to the attendees who celebrated success with the Regional Chamber at the 2026 Annual Meeting & Awards Luncheon on Wednesday, March 25 at the Three Rivers Convention Center. 
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Thanks to Breshears Professional Photography for snapping these wonderful photos!

Washington communities need safe streets, reliable sidewalks, and transportation systems that help residents access jobs, schools, and local businesses. One common local tool for funding these needs is the Transportation Benefit District, also known as a TBD. This two-part series explains how TBDs work and what they mean for daily life in Washington. Part 1 covers what TBDs are, how they raise funds, and why local governments choose to use them. Part 2 discusses what TBDs mean for businesses and residents, including the most common benefits and concerns.

Potholes, cracked sidewalks, and traffic backups are more than just inconveniences. They affect emergency response times, customer access to stores, and the safety of pedestrians and cyclists in their neighborhoods. In Washington State, local governments often use a Transportation Benefit District, or TBD, to help fund transportation improvements and services.
A TBD is a local public agency formed by a city, a county, or a group of local governments. Its main goal is to raise local funds for specific transportation projects that benefit the community. Since the money is allocated specifically for transportation, it doesn’t get mixed into a city’s general budget, where it would compete with other needs.

What a Transportation Benefit District is

A Transportation Benefit District is a separate taxing district focused on transportation issues. It can be created by a city or county and is usually governed by the same elected officials on the city council or county commission.
A main aspect of TBDs is their purpose-specific nature. The revenues collected are designated for transportation enhancements and services, allowing communities to concentrate on local priorities such as road maintenance, sidewalk upgrades, and intersection safety improvements.

How TBDs can raise money in Washington

State law offers TBDs several revenue options, but most rely on two tools: a small local sales tax and vehicle license fees.
Vehicle license fees are collected during annual vehicle registration. In many cases, a local government can impose a fee of up to $20 without a vote if the district covers the entire area of the city or county that created it. A TBD can also seek voter approval for higher amounts, including fees up to $100 under state law.

The sales tax authority is also frequently used. Some TBD sales taxes require voter approval, while state law permits limited sales tax authority through a council vote in specific situations when the district encompasses the entire creating jurisdiction. In practice, communities often opt for voter approval for larger or longer-term funding.

TBDs also specify requirements for public accountability. State guidance outlines annual reporting on revenues, expenses, and improvements.

How local governments are using TBDs right now
Across Washington, TBDs are widely used, especially by cities. They are often used to fund practical, visible transportation projects that residents and businesses see every day.

Common uses include street maintenance, pothole repairs, sidewalk repairs, ADA curb ramp installations, safer crossing enhancements, traffic signals, and specific intersection upgrades. In some areas, TBD revenue also supports transit reliability or improvements that help buses operate more efficiently.

Many local governments also rely on TBD revenue as a dependable source of local funding that can enhance grant applications. When a city can demonstrate local matching dollars, it may become more competitive for state and federal transportation grants.

Examples of local TBD use include established city programs and newer county initiatives. Some jurisdictions describe TBDs as a way to fund specific improvements and prevent street maintenance from falling behind each year.

Why TBDs may be necessary

Transportation infrastructure is expensive and gets more costly over time. Costs for materials like asphalt and concrete, construction equipment, and labor tend to rise. At the same time, many cities and counties face a backlog of maintenance. When a community delays routine maintenance, the problem often worsens, and repairs later become much more costly.

TBDs can help by providing local governments with a dedicated, flexible tool to raise local funds. This allows a community to handle urgent repairs, address safety problems, and plan transportation projects more consistently than relying solely on grants or short-term budget decisions.

Transportation Benefit Districts provide Washington cities and counties with a reliable source of funding for local transportation projects. These districts support street maintenance, safety improvements, and other initiatives that help keep communities connected and functional. Additionally, they offer local leaders a faster way to address transportation issues compared to waiting for external grants.
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In Part 2 of this series, we will shift from the “how” to the “so what.” We will explore what TBDs mean for businesses and residents, including the most common benefits, the biggest concerns, and the trade-offs communities face when choosing between taxes and fees to fund transportation.

Incremental tax financing, also known as tax increment financing or TIF, is a strategy used by a city, county, or port to fund public improvements in a designated area by leveraging the projected future increase in property tax revenue from that same area. The concept is that new sidewalks, roads, utilities, parking, stormwater management, and similar upgrades can stimulate private investment. As property values rise after these improvements, the additional property tax revenue, or “increment,” is temporarily set aside to fund the public costs, often through local bonds.


For businesses, TIF can eliminate significant barriers to growth. If a commercial district lacks safe access, modern utilities, or build-ready sites, private projects might stop. When local government uses TIF to fund these essentials, it can attract new employers, support downtown storefronts, and help small businesses draw more customers and enjoy safer, cleaner streets. The downside is that TIF could shift the focus of new public funds, raising concerns about fairness if one area gets major upgrades while others are left behind.


For Washington residents, benefits can include revitalized neighborhoods, increased housing or commercial spaces, and more local jobs, especially when investment targets underused areas. There are also risks. If growth estimates are overly optimistic, the extra revenue might not cover costs as expected, which could strain future budgets. Additionally, when the revenue is used to pay off project costs, other local services may not immediately benefit from the growth in the tax base. Good project selection, realistic forecasting, and transparent public reporting are essential.


Washington’s history with TIF is unusual. Earlier efforts faced constitutional issues, including a Washington Supreme Court decision that struck down Spokane’s use of a previous redevelopment financing law in the 1990s. The state later introduced a different, limited approach called the Local Infrastructure Financing Tool, enacted in 2006, which links local revenue growth with a state sales tax credit and has been examined by state auditors.


In 2021, Washington adopted a modern local TIF framework in state law under chapter 39.114 RCW, and the state has continued to improve the rules in subsequent years. In practice, TIF can be a powerful tool when it is connected to clear community goals such as housing supply, job sites, and infrastructure that truly attract private investment.

Thanks to all who made it out to the groundbreaking for Thorn Construction Group's new project! 

Thanks to all who joined us for another successful Business After Hours at Generational Care! 

The Tri-City Regional Chamber of Commerce relies on its guiding principles to shape policy positions that support a strong economy and a healthy business environment. These principles help the Chamber stay focused, consistent, and aligned with the needs of local businesses when influencing local, state, and federal issues.

Here is an in-depth look at the Chambers Transportation and Infrastructure guiding principle.

Transportation and infrastructure are crucial for any growing community, and the Tri-Cities are no exception. Roads, bridges, airports, rail systems, internet access, and public transit all influence how easily people and goods move. The Tri-City Regional Chamber of Commerce emphasizes that transportation and infrastructure policies should foster economic growth. In essence, safe and efficient movement of people and products supports a healthy local economy.

Businesses of all sizes depend on good transportation systems. Farmers need reliable roads and railways to move crops, stores require shipments to arrive on time, and customers want safe, easy ways to get where they need to go. The same is true for modern infrastructure like broadband internet, which is now just as vital as a road for moving information. If any of these systems fail or lag, businesses and families feel the impact.

When new policies or projects are proposed, the Chamber uses this guiding principle to ask essential questions. Will the project facilitate easier and safer product movement? Does it improve access to work or school? Will it promote growth while avoiding unnecessary costs or delays? These questions help us determine whether to support or oppose proposals affecting transportation or infrastructure in the Tri-Cities.

Over the years, this principle has guided the Chamber's efforts to support projects such as road upgrades, river crossings, broadband expansion, and improved air travel links. These initiatives enhance daily life and make the Tri-Cities more appealing for business, ultimately generating jobs and opportunities in our region.
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Ultimately, transportation and infrastructure aren’t just about roads or cables; they’re about connecting our community. By adhering to this principle, the Chamber helps ensure that new policies and investments keep our region moving forward, both literally and economically.
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Thanks to all who made it to the ribbon cutting for Surf Thru! You can check them out at 624 S Ely St., Kennewick, WA 99336.

Thanks to everyone who attended the first ribbon cutting at Vista Field for Blueberry Bridal Boutique! You can find them at 625 Crosswind Blvd., Kennewick, WA 99336.