HB 1523, sponsored by Rep Sharon Wylie (D–Vancouver), would modify the existing sales tax authority imposed by a transportation benefit district (TBDs). Currently, voters can approve a 0.2% sales tax that can be renewed every ten years up two-times. The bill would allow for this voter-approved tax to be voted on every ten years in perpetuity.
TBDs are an independent taxing district and quasi-municipal corporation; they may be created to fund transportation improvement projects within a district. TBDs have the current authority to raise revenue in the following ways, each subject to voter approval:
- Excess property taxes for up to one year;
- Local sales and use tax of up to 0.2% for a limit of ten years;
- Border area fuel tax for certain jurisdictions;
- Annual vehicle fees of up to $100; and
- Vehicle tolls, subject to various restrictions.
This bill was one of the primary recommendations in a recent Joint Transportation Committee study. The bill would have a dramatic, positive impact on nearly 50 TBDs (45% of all TBDs) that rely on the local sales and use tax to fund their projects.
HB 1523 currently awaits action in the House Rules Committee. AWC signed in support of this bill.