A Transportation Benefit District (TBD) is a Quasi-municipal corporation & independent taxing district created for the sole purpose of funding transportation improvements within the district. A TBD is created by ordinance of legislative authority (county or city) and may include other counties, cities, port districts, or transit districts through Inter-local agreements.
A law passed by the Washington State Legislature in 2007 allows city or county governments to create local transportation benefit districts and impose a local vehicle registration fee or other funding sources (such as sales tax) to fund local transportation projects. TBDs in Washington State have primarily been funded by a vehicle registration fees, but a few cities have implemented a sales tax funded TBD.
Lynnwood City Council Establishes a TBD
On May 24th 2010 the Lynnwood City Council approved Ordinance #2837 that formed the Lynnwood Transportation Benefit District and adopted a new chapter to the Lynnwood Municipal Code, 12.14, entitled “Transportation Benefit District”. The ordinance specifies that the boundaries for the TBD be coextensive with the City limits.
Lynnwood TBD Chronology of Events
At the November 29th 2010 Board Meeting the TBD Board adopted TBD Ordinance #2 enacting an annual $20 vehicle registration fee (for each eligible vehicle registered in Lynnwood). The $20 fee went into effect on July 1st 2011. At the July 27th 2016 Board Meeting the TBD Board adopted TBD Ordinance #10 increasing the fee to $40. The $40 fee (increase from $20 to $40) went into effect on February 1st 2017.
At the April 20, 2016 Board Meeting the TBD Board voted to submit a ballot proposition for the November 8th 2016 election to impose a sales and use tax increase in the amount of 0.1%. On November 8th 2016, the Lynnwood voters approved a 0.1% sales and use tax increase to fund road improvements in Lynnwood. The increase went into effect on April 1st 2017 and last 10 years.
Additional TBD Information
For more information on vehicle registration fee funded TBDs and the type of vehicles subject to fees, please see the Washington State Department of licensing web site at: http://www.dol.wa.gov/vehicleregistration/localfees.html
For Washington State TBD law, see the following: http://apps.leg.wa.gov/rcw/default.aspx?cite=36.73