Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Transportation Committee
HB 1523
Brief Description: Concerning renewal of the sales and use tax for transportation benefit districts.
Sponsors: Representatives Wylie, Rude and Slatter.
Brief Summary of Bill
  • Allows a sales tax imposed by a transportation benefit district to be renewed every 10 years, with an affirmative vote of the people.
Hearing Date: 2/17/21
Staff: David Munnecke (786-7315).
Background:

A transportation benefit district (TBD) is an independent taxing district and quasi-municipal corporation.  A TBD may be created to acquire, construct, improve, provide, and fund transportation improvement projects within a district.  The legislative authority of a city or county may create a TBD, and other jurisdictions may be incorporated via interlocal agreements.

 

Transportation benefit districts have the authority to raise revenue in the following ways, each of which are subject to voter approval:

  • excess property taxes for up to one year;
  • a local sales and use tax of up to 0.2 percent;
  • a border area fuel tax in certain jurisdictions;
  • annual vehicle fees of up to $100; and
  • vehicle tolls, subject to various restrictions.

 

A TBD may also raise revenue by imposing an annual vehicle fee of up to $50 or by establishing transportation impact fees on commercial and industrial development, without receiving voter approval.

 

A TBD may only impose a sales and use tax for 10 years, unless the proceeds are dedicated to the repayment of indebtedness.  A sales and use tax may also be extended for an additional 10 years with voter approval.
Summary of Bill:

A sales tax imposed by a TBD may be renewed every 10 years, with an affirmative vote of the people.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.