Transportation Benefit District

Redmond is in the process of forming a Transportation Benefit District (TBD) to fund maintenance and improvements to city streets, public transportation, strategies aimed at maximizing safety and traveling choices, parking facilities, and other transportation projects designed to reduce congestion. A city may form a TBD by passing an ordinance, defining the geographic area and transportation benefits to be funded. A public hearing was held as part of the regular business meeting of Redmond City Council on Tuesday, May 2, at Redmond City Hall. 

On May 2, at their regular business meeting, by a unanimous vote the City Council adopted an ordinance to form a Transportation Benefits District (TBD). The TBD would fund maintenance and improvements to city streets, public transportation, strategies to maximize safety and traveling choices, parking facilities, and other transportation projects designed to reduce congestion, through a sales tax increase of 1/10th of 1%. 

Read the draft ordinance.

Transportation Benefit Districts are independent taxing authorities that can fund specific transportation efforts. There are currently over 110 TBDs in Washington state, established by cities and counties. TBDs primarily raise money through sales and use taxes or vehicle license fees, and Redmond’s TBD would impose a 0.1% sales tax on taxable sales within the city limits to raise funds.

Learn more about TBDs at from the Municipal Research and Services Center or read the FAQs below. 

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