Republican Bill Proposes to Triple Transportation Benefit District Sales Tax Ceiling

Rep. Dick Muri

Rep. Dick Muri (R - Steilacoom), has introducted a bill to triple the sales tax lid for transportation benefit districts, from 0.2% to 0.6%. HB 2816 will be getting a hearing in the House Transportation Committee Thursday at 3:30 pm. The bill faces a quick deadline of Tuesday, February 9 to pass out of committee.

In addition to a sales tax, TBDs may already impose

a local annual vehicle fee of up to $100 on vehicle license renewals, $50 of which may be imposed without voter approval;excess property taxes, for a period of up to one year, with voter approval;tolls, subject to legislative authorization if on state routes and approval by the Washington State Transportation Commission if only affecting state routes, with local voter approval;transportation impact fees on commercial and industrial development, without voter approval.

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Seattle's 2014 Proposition 1 (Move Seattle) (to fund more Seattle bus service) imposed a 0.1% sales tax and $60 vehicle license fee through the TBD mechanism.

King County attempted to enact a 0.1% sales tax and $60 car tab earlier in 2014 through this mechanism, but voters turned it down.

While these districts have been used for transit funding locally, there is a long list of city TBDs using them to fund a wide array of transportation projects.

Last year's Tacoma Proposition A imposed 0.1% of additional sales tax in Tacoma and will fund local street improvements through Tacoma's TBD.

The 0.3% sales tax voters in the Community Transit district passed last year was not from this mechanism, but from a special authorization contained in the ST3 authorization bill.