A transportation benefit district (TBD) is a special purpose taxing district that may be established by a county or city for acquiring, constructing, improving, providing, and funding transportation improvements within the TBD area. A TBD is governed by the legislative authority of the jurisdiction proposing to create it, or by a governance structure prescribed in an interlocal agreement among the participating jurisdictions. Port districts and transit districts may participate in the establishment of a TBD, but may not initiate TBD formation.
A TBD has independent taxing authority to implement the following revenue measures, most of which are subject to voter approval:
The TBD sales tax, unless dedicated for the repayment of indebtedness, may not be imposed for a period exceeding 10 years. However, the sales tax may be extended for a period not exceeding 10 years if approved by voters.
Voters within a TBD may renew multiple extensions of a sales tax, with each renewal extending the tax for an additional period not exceeding 10 years.