Transportation Benefit District

White Salmon’s Transportation Benefit District was established by City Council in December 2022. The City Council also assumed the rights, powers, and oversight of the District in January 2023, and implemented revenue sources to fund the district in Spring 2023. Transportation benefit districts (TBDs), are quasi-municipal corporations and independent taxing districts that can raise revenue for specific transportation projects, usually through vehicle license fees or sales taxes. Revenue generated for a TBD may be used for transportation improvements included in a local, regional, or state transportation plan. Improvements can range from roads and transit service to sidewalks and transportation demand management. Construction, maintenance, and operation costs are eligible. 

Why a TBD was established

The current available revenue source for the City’s Street Fund is property taxes. The property tax increase cap of 1% has not allowed the revenues to keep up with inflation, which has created a deficit for capital improvement funding. The Street Fund covers the cost for Public Works personnel when addressing street-related issues, supplies related to street repairs, services and charges for maintenance and equipment needed to support street needs within Public Works, as well as capital purchases. With limited debt capacity, the city relies heavily on pursuing grant funding to complete necessary street infrastructure projects. Although funding from a TBD will not generate enough revenue to complete larger projects, it would offer additional revenue that could be used for smaller capital projects and grant award match funds. 

How the TBD will be Funded

In Spring 2023, City Council implemented a .1% sales tax and a $15 vehicle licensing fee. Transportation benefit districts are primarily funded through vehicle license fees and/or sales taxes. TBDs may impose councilmanic vehicle license fees up to $50 without voter approval and/or a councilmanic 0.1% sales tax without voter approval. Higher vehicle licensing fees (up to $100) or sales tax (up to .3%) must go to the voters for approval. 

Sales Tax .1%

It is projected than this additional sales tax would generate $72,791 in annual revenue, or nearly $728,000 over the 10 years it can be in effect. The funds can only be used by the TBD on allowed transportation improvements. The .1% sales tax goes into effect July 1, 2023.

$15 Vehicle Licensing Fee

Licensing fees are the most common way that TBDs are funded statewide. A TBD may impose a councilmanic vehicle license fee up to $20 at any time for a 10-year period. A TBD may only impose a nonvoted vehicle license fee above $20 as follows: 

• Up to $40, but only if a $20 fee has been in effect for 24 months. 
• Up to $50, but only if a $40 fee has been in effect for at least 24 months. 

Any license fees over these amounts and up to $100 must be approved by a simple majority of the voters. It is estimated that the new vehicle licensing fee will generate $48,360 in annual revenue. The $15 vehicle licensing fee goes into effect August 28, 2023.