Transportation Benefit District

What is a Transportation Benefit District (TBD)?

A Transportation Benefit District is an independent taxing district authorized by state law for the sole purpose of  transportation improvements within the district. A TBD is an independent taxing district that can impose specific taxes or fees, either through a vote of the public, or through district board action. TBDs are flexible-they allow cities and counties to work cooperatively or independently to address both local and regional transportation challenges.  Transportation Benefit District was established by Ordinance 934-B of the Chehalis City Council in 2014. 

What are the boundaries of the Chehalis TBD?

The boundary of the Chehalis TBD is the Chehalis city limits. 

Who governs the TBD?

The Chehalis City Council adopted Ordinance 950-B in 2015, which allowed the Council to assume the functions, rights, and powers of the TBD.  This also includes governing the TBD within the Chehalis District.  

What revenue options do TBDs have?

TBDs have several revenue options subject to voter approval:

• Property Taxes
• Up to .2 percent sales and use tax
• Up to $100 annual vehicle fee per vehicle registered in the district
• Vehicle tolls

TBDs have two revenue options that do not require voter approval but are subject to additional conditions. To impose either fee, the TBD’s boundaries must be countywide or citywide, or if applicable, in the unincorporated county. Foregoing a vote is an option. A county or city still has the option of placing either fee to the vote of the people as an advisory vote or an actual requirement of imposition. The two options are:

1. Annual vehicle fee up to $20. This fee is collected at the time of vehicle renewal and cannot be used to fund passenger-only ferry service improvements. (HB 1485 increases this option up to $40.)
2. Transportation impact fees on commercial and industrial buildings. Residential buildings are excluded. In addition, a county or city must provide a credit for a commercial or industrial transportation impact if the respective county or city has already imposed a transportation impact fee.

Does Chehalis have an additional sales and use tax that was approved by the voters?

Yes. In 2017 voters approved a 10-year .2% increase in sales and use tax to fund the Transportation Benefit District.