Transportation Benefit Districts

Transportation Benefit Districts

Transportation Benefit Districts (TBDs) are an important mechanism for local governments in Washington State to fund and maintain transportation-related projects. These districts provide cities and counties with a way to address infrastructure needs without relying solely on state and federal funding.

A Transportation Benefit District (TBD) is a quasi-municipal corporation authorized by Washington State law, specifically under RCW 36.73. Local governments can establish TBDs to generate revenue dedicated to funding transportation improvements. These improvements include a wide range of projects aimed at maintaining and enhancing local transportation infrastructure.

A TBD can encompass a whole city, a portion of a city, or even multiple jurisdictions if neighboring municipalities choose to collaborate. This flexibility allows local governments to create a funding mechanism tailored to their specific needs and challenges, from urban centers to rural areas.

Once a TBD is established, the local government can use several tools to generate revenue specifically for transportation projects. Common revenue-generating mechanisms include:

• Vehicle Licensing Fees: A TBD can impose an annual fee on vehicle registrations within the district.
• Sales and Use Taxes: TBDs can levy an additional sales tax of up to 0.2% for transportation purposes, but this requires voter approval.
• Property Taxes: TBDs can propose property tax levies, usually in the form of special property tax assessments, but this also requires voter approval.
• Other local Funding Mechanisms: In addition to the above, TBDs can issue bonds, apply for grants, or even create tolls in specific circumstances.

Funds collected through TBDs are restricted to transportation-related projects. These projects can vary widely but must fall within the scope of transportation improvements as defined by Washington State law. Some common uses of TBD funds include:

• Road and Street Maintenance: Local governments can use TBD funds to maintain and repair existing roads, including filling potholes, repaving streets, and improving road safety.
• Public Transit Support: TBD revenue can go towards improving public transportation, including funding for buses, park-and-ride facilities, and transit stops.
• Sidewalks and Pedestrian Safety: TBDs can fund projects that enhance walkability, such as building sidewalks, installing pedestrian crossings, and ensuring ADA (Americans with Disabilities Act) compliance.
• Traffic Flow Improvements: TBDs can be used to manage congestion by funding projects that improve traffic flow, such as the addition of turn lanes, traffic signal optimization, and the creation of roundabouts.
• Bicycle Infrastructure: Funds can support the development of bike lanes, trails, and other bike-friendly infrastructure.

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Transportation Benefit Districts are critical to local governments in Washington State for several reasons. They allow cities and counties greater autonomy in identifying transportation needs. They also create a dedicated and flexible funding stream for funding transportation improvements, helping to bridge the gap between other sources of funding. Well-maintained transportation infrastructure is essential for economic development and because TBD funds are restricted to transportation projects, they increase accountability in local government spending.

Transportation Benefit Districts are a vital funding mechanism for Washington's cities and counties, providing them with the flexibility and resources to address diverse transportation challenges. With dedicated funds for transportation projects, TBDs ensure that local governments can keep roads, bridges, and transit systems safe, efficient, and up to date.

In a state where population growth and economic development are putting pressure on infrastructure, TBDs are an essential part of the solution. They empower communities to plan and fund transportation improvements that directly impact residents' daily lives, making TBDs a cornerstone of local government finance and planning in Washington State.

Currently the City of Richland has a Transportation Benefit District. The City of Kennewick just approved one. The City of Pasco is considering one to help tackle it's protentional budget shortfall. West Richland does not currently have a TBD.