Submitted by the Town of Friday Harbor.
The Nov. 5 General Election is a few weeks away and Town voters will be asked to consider Proposition 1 regarding the renewal of the two-tenths of one percent (0.2%) Transportation Benefit District sales and use tax to fund transportation improvements in the town.
What is a Transportation Benefit District?
A Transportation Benefit District is an independent taxing district that can be formed by cities and counties in Washington. They can be used for acquiring, constructing, improving, providing and funding transportation improvements within the area of the district. Projects may also include operations, preservation and maintenance of transportation facilities. Chapter 36.73 RCW contains the rules and regulations for forming and operating the district. Friday Harbor’s Transportation Benefit District is governed by the Town of Friday Harbor Council. Any funds raised by the district are used within the town.
Overview
The Friday Harbor Transportation Benefit District was established on July 17, 2014, to improve the Town’s transportation infrastructure. Its boundaries are the same as the town’s boundaries.
The Transportation Benefit District was formed to help support the Town’s street fund. Unlike other Town utilities, the street fund does not have a guaranteed revenue stream. Instead, it is funded by taxes and grants. This tax generated $3,144,551.45 in revenue received from June 2015 to August 2024. With the tax, the Town has been able to maintain existing streets, curbs and sidewalks and upgrade other areas.
Tax Increase Measures
Transportation Benefit District tax is incorporated into local sales tax rates and may be up to 0.3%. Voter approval is required for the first 0.2%. An additional percentage of up to 0.1% may generally be approved by legislative body pursuant to RCW 82.14.0455, 36.73.040(3)(a), 36.73.065(1).
In 2014, voters approved a 0.2% sales and use tax within the District. On Dec. 7, 2023, the Town Council approved a 0.1% increase to the tax. As of Jan. 1, 2024, the TBD sales tax rate for the Town is 0.3%.
The TBD sales tax has a maximum duration of 10 years unless used for repayment of debt and may be renewed with voter approval.
The TBD sales tax is due for renewal on the November 2024 election ballot.
Use of Revenues – Transportation Improvements
The revenues may be used for eligible “transportation improvements” listed in a local, regional or state transportation plan in accordance with Chapter 36.73 RCW. Improvements can range from roads and transit service to sidewalks and transportation demand management. Construction, maintenance and operation costs are eligible.
The District uses proceeds from this tax to acquire, invest in, construct, improve, provide, operate, preserve, maintain and/or fund the following transportation improvements:
Projects identified in the Town’s Six-Year Transportation Improvement Program.
Expanded projects identified in accordance with RCW 36.73.160.
Examples of uses of these funds include:
Curbs.
Gutters.
Sidewalks.
Storm drains and/or streetlights.
Marguerite Place and First Street with new paving.
Grover Street.
Tucker Avenue.
Upgrade to the Spring Street/Mullis Street intersection and crosswalk with high-visibility lighting.
Annual asphalt overlay (upgrade and maintain street and safety conditions).
Informational documents, including an explanation of TBD and the allowed uses of this tax, are available for review at http://www.fridayharbor.org/2226/Transportation-Benefit-District or by contacting the Town Clerk at 360-378-2810.
