Transportation Benefit District (TBD)

What is a Transportation Benefit District (TBD)?
It is an independent taxing district to provide stable funding source for roads, transit service, sidewalks, transportation demand management. Funding can be used for construction, maintenance, and operation.

How would it operate?
The Council would form the district with the same borders as the city, assume oversight of the district and then fund the district, likely with a 0.1% sales tax.

What would it do?
That sales tax would generate approximately $850,000 each year to keep current levels of road maintenance without falling behind.

Impact to Roads
It is easier and cheaper to maintain roads than to let them get so bad that they must be completely rebuilt. This program invests smaller amounts of funding over time to maintain roads and avoid costly construction.


It also impacts neighboring residents, businesses and routes less to do maintenance rather than fully rebuild roads.


Impact to Consumers

Most other sources of roadway funding--grants, impact fees, etc.--can not be used for residential roads or maintenance. Grants focus on big projects and construction. Other funding options for roads, such as a local improvement district, put the funding burden on residents. This option spreads payment to people shopping in Sumner, assuming they are using the roads even if they don’t live here.

Comparison to Other Cities

When compared to other cities in the area, the TBD does not make much difference in Sumner's sales tax rate. With or without the TBD, Sumner is neither the lowest nor the highest rate in the area. The larger difference comes from cities that are not in the Regional Transit Authority (RTA) that does include Sumner.

In addition, Sumner is not the first city in the area to explore adopting a TBD. Most other Pierce County cities already have. Some have opted for the 0.1% sales tax option while some have chosen the car tab fee. Sumner Council have asked staff to explore the 0.1% sales tax option only for funding, not the car tab fee.

What is a Transportation Benefit District (TBD)?
It is an independent taxing district to provide stable funding source for roads, transit service, sidewalks, transportation demand management. Funding can be used for construction, maintenance, and operation.

How would it operate?
The Council would form the district with the same borders as the city, assume oversight of the district and then fund the district, likely with a 0.1% sales tax.

What would it do?
That sales tax would generate approximately $850,000 each year to keep current levels of road maintenance without falling behind.

Impact to Roads
It is easier and cheaper to maintain roads than to let them get so bad that they must be completely rebuilt. This program invests smaller amounts of funding over time to maintain roads and avoid costly construction.


It also impacts neighboring residents, businesses and routes less to do maintenance rather than fully rebuild roads.


Impact to Consumers

Most other sources of roadway funding--grants, impact fees, etc.--can not be used for residential roads or maintenance. Grants focus on big projects and construction. Other funding options for roads, such as a local improvement district, put the funding burden on residents. This option spreads payment to people shopping in Sumner, assuming they are using the roads even if they don’t live here.

Comparison to Other Cities

When compared to other cities in the area, the TBD does not make much difference in Sumner's sales tax rate. With or without the TBD, Sumner is neither the lowest nor the highest rate in the area. The larger difference comes from cities that are not in the Regional Transit Authority (RTA) that does include Sumner.

In addition, Sumner is not the first city in the area to explore adopting a TBD. Most other Pierce County cities already have. Some have opted for the 0.1% sales tax option while some have chosen the car tab fee. Sumner Council have asked staff to explore the 0.1% sales tax option only for funding, not the car tab fee.

Questions?

Please ask questions about a TBD and its benefits/impacts to Sumner.

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Page last updated: 26 Mar 2025, 03:57 PM