About Tacoma Transportation Benefit District
Establishment and Purpose
The Tacoma Transportation Benefit District (TBD) was created on November 20, 2012, through Ordinance No. 28099, to fund transportation improvements that align with state, regional, and local plans. The TBD addresses existing and future congestion needs, ensuring enhanced mobility for Tacoma residents and visitors.
Funding Sources
Vehicle License Fee:
In November 2012, the TBD Board approved a $20 vehicle license fee, collected by the Washington State Department of Licensing starting in June 2013. This fee generates nearly $5 million per biennium and supports local transportation improvements.
Proposition A Sales Tax:
In 2015, Tacoma voters approved Proposition A, authorizing a 0.1% sales tax for ten years. These funds support the Comprehensive Transportation Program, which includes pothole repairs, street resurfacing, arterial and freight road improvements, school crossing beacons, and building new sidewalks.
Continued Investment in Tacoma’s Streets
On December 3, 2024, the TBD Board approved Resolution No. TBD 023 to replace and impose the 0.1% sales and use tax starting April 1, 2026, replacing the expiring voter-approved tax from 2015. This renewal ensures uninterrupted funding for street maintenance, preservation, and enhancements without increasing the overall tax rate.
Since its inception, TBD funding has improved over 4,800 residential blocks, upgraded sidewalks and crosswalks, enhanced bike paths, and addressed arterial and freight route needs. At least 15% of the renewed revenue will go toward safety improvements, such as sidewalks, streetlights, and bulb-outs, reflecting Tacoma’s commitment to equity, accessibility, and sustainability.
For more details, visit the Tacoma Streets Initiative website.
Agendas, Minutes and Videos on Legistar
What is a Transportation Benefit District?
In 1987, the State Legislature created Transportation Benefit Districts (TBD) as an option for local governments to fund transportation improvements. Chapter 36.73 of the Revised Code of Washington provides for the establishment of TBD by cities and counties to levy and impose various taxes and fees to generate revenues to support transportation improvements within the district. A TBD is a quasi-municipal corporation and independent taxing district created for the sole purpose of acquiring, constructing, improving, providing, and funding transportation improvements within the district.
In 2005 and 2007, the Legislature amended the TBD statute to expand its uses and revenue authority, including the ability to authorize a $20 annual vehicle license fee (VLF), and up to an additional $100 of VLF, if approved by voters within the district.
The state legislature provided local governments with these tools because inflation has eroded the local share of gas tax and a series of statewide ballot initiatives passed over the last 12 years have eliminated other traditional sources of funding for local transportation needs.