The City of Auburn’s Transportation Benefit District (TBD)
History of the District
2011: The Auburn City Council passed Ordinance No. 6377 that established Auburn City Code (ACC) Chapter 3.23 and the formation of the Auburn Transportation Benefit District. The geographic boundaries of the Auburn Transportation Benefit District is the municipal limits of the City of Auburn as they currently exist. The Auburn TBD geographic boundaries would expand with any future annexations.
The Auburn Transportation Benefit District was established based on the Auburn City Council's findings that it was in the public interest to form a Transportation Benefit District to provide adequate levels of funding for transportation improvements that are consistent with existing state, regional and local transportation plans and are necessitated by 'existing or reasonably foreseeable congestion levels, as provided in Chapter 36.73 of the Revised Codes of Washington (RCW).
The Auburn City Council further found that it was in the public interest to provide for transportation improvements that improve modal connectivity and that protect the City's long-term investments in its infrastructure; reduce the risk of transportation facility failure; improve safety; continue optimal performance of the infrastructure over time; and avoid more expensive infrastructure replacements in the future.
2012: Following its formation, the Auburn Transportation Benefit District Board passed Resolution No. 2012-01 that approved a charter for the TBD. The articles of this charter govern the actions and proceedings of the Auburn Transportation Benefit District. The adopted charter specifies that the powers of the District include the authority to:
- Establish and implement District policies, programs and procedures
- Borrow money and incur indebtedness
- Provide for investment of District funds
- Create Advisory Committees - limited to 7 city residents
- Other powers consistent with State law
December 13, 2016: The Auburn TBD Board approved Resolution No. 2016-01 that approved an annual vehicle license fee of $20.00 for qualifying vehicles in the District.
February 22, 2017: The Auburn TBD Board suspended Resolution No. 2016-01
September 19, 2017: The Auburn TBD Board rescinded Resolution No. 2016-01. Therefore, no vehicle license fees were put into effect and no fees have been collected.
November 18, 2019: the Auburn City Council adopted Ordinance No. 6739 that approved the assumption of all rights, powers, functions and obligations of the Auburn Transportation Benefit District (TBD) Board to the City Council. The Auburn City Council is responsible for the implementation of the TBD and for the approval of any actions necessary to enact potential funding options as allowed under RCW 36.73 for transportation improvements.
October 3. 2022: The City Council adopted Ordinance No. 6881 which added a new section to the Auburn City Code (Chapter 3.23) imposing a Transportation Benefit District 0.1% Sales and Use Tax as authorized by RCW 84.55 and RCW 36.73. This tax became effective on January 1, 2023.
Related Information
For more information on the state of Auburn's streets, please visit Street Preservation.
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Frequently Asked Questions
What is a Transportation Benefit District (TBD)?
In 1987, the Washington State Legislature created the authority of Transportation Benefit Districts (TBD) as an option for local governments to fund transportation improvements.
Revised Code of Washington (RCW) Chapter 36.73 provides for the establishment of TBDs by cities and counties to form these quasi-municipal corporations and independent taxing districts for the sole purpose of levying taxes and imposing fees to generate revenue to acquire, construct, improve, provide, and fund transportation improvements within the district.
Why was the authority for Transportation Benefit Districts (TBD) established?
The legislature’s purpose for allowing the formation of TBDs was to provide a tool for municipal governments to offset several funding issues, which included the erosion of the local share of gas tax and a series of statewide ballot initiatives passed over the last several decades that have eliminated other traditional sources of local transportation funding.
Who may create a Transportation Benefit District (TBD)?
The legislative authority of a county or city may create a TBD by ordinance following the procedures set forth in the Revised Code of Washington (RCW) Chapter 36.73.
Who runs the Transportation Benefit District (TBD)?
The Auburn City Council is the governing body of the Auburn TBD.
How many TBDs exist in Washington State?
There are currently over 100 TBDs throughout Washington State. More information about TBDs can be found on the Municipal Research Services Center.
What funding mechanisms does a TBD have authority to enact?
The Revised Code of Washington (RCW) Chapter 36.73 originally provided the statutory authority for the creation of Transportation Benefit Districts over 30 years ago and has amended the legislation several times, granting additional funding mechanisms over time. The following are the most current funding mechanisms available to TBDs:
- Vehicle License Fees (RCW 82.80.140 and RCW 36.73.040)
- Up to $40.00, but only if a $20.00 fee has been in effect for at least 24 months.
- Up to $50.00, but only if a $40.00 fee has been in effect for at least 24 months.
- Any Fee in excess of these amounts, up to $100, if approved by a simple majority of voters.
- Sales and Use Tax (RCW 82.14.0455 and RCW 36.73.040)
- Up to a .2% increase on sales and use tax (voter approved)
- Up to a .1% levy on sales and use tax (councilmanic), effective June 30, 2022
- Other funding mechanisms
- General obligation bonds (RCW 36.73.070) – a multi-year increased levy to pay for the debt service payments on General Obligation bond issuance for transportation improvements.
- Impact fees on commercial and industrial development in accordance with chapter 39.92 RCW (RCW 36.73.040(3)(c) and RCW 36.73.120).
- Excess property taxes (RCW 36.73.060) – this is a one year excess levy collection.
- Local improvement districts (RCW 36.73.080) – special assessments imposed on properties in a pre-identified area to pay for the debt service payments on General Obligation bond issuances for transportation projects within a specified area.
What funding options, if any, has the City of Auburn adopted?
As of October 3, 2022, the City has implemented the 0.1% levy on sales and use tax and began collection of this tax on January 1, 2023. These revenues are dedicated for transportation projects as identified in the City’s Transportation Improvement Plan.
How is the $20.00 vehicle license fee for the Auburn Transportation Benefit District collected?
An agreement between the City and the Washington State Department of Licensing is required and would provide that the $20.00 vehicle license fee is assessed as part of the State's vehicle license process. For more information, please view the Washington State Department of Licensing Transportation Benefit District website. At this time, Auburn has not assessed a vehicle license fee.
Can I pay a lower vehicle license fee based on my income level?
There is no low income program available for the City of Auburn. RCW 36.73.067 authorizes transportation benefit districts, within cities with a population of 500,000 people or more, to offer a 40 percent rebate of the actual fee, tax or toll paid by low-income individuals. Currently the City of Seattle is the only city that qualifies for this rebate.
What vehicles are subject to the vehicle license fee?
- Passenger vehicles
- Trucks that weigh 6,000 pounds or less
- Motorcycles
- Commercial passenger vehicles and trucks that weigh 6,000 pounds or less
- Combination trucks that weigh 6,000 pounds or less
- Tow trucks
- House moving dollies
- Trucks used exclusively for hauling logs that weigh 6,000 pounds or less
- Taxicabs
- For-hire or stage vehicles with 6 seats or less
- For-hire or stage vehicles with 7 or more seats that weigh 6,000 pounds or less
- Private use trailers over 2,000 pounds
- Motorcycle trailers
- Travel trailers
- Fixed load vehicles that weigh 6,000 pounds or less
- Mobile homes licensed as vehicles
What vehicles are exempt from the vehicle license fee?
Some vehicles are exempt from the TBD fee. The following exemptions are currently in effect, according to state law:
- All farm vehicles
- Campers
- Off-road vehicles
- Snowmobiles
- Mopeds
- Personal use trailers with a single axle and less than 2,000 pounds scale weight
- Commercial trailers
- Combination trailers
- Trailers used exclusively for hauling logs
- Horseless carriage, collector, or restored-plate vehicles
- Converter gear
- Government vehicles
- Private school vehicles
- Vehicles properly registered to disabled American veterans