A Transportation Benefit District (TBD) is a tool that allows Bellevue to raise dedicated funding for transportation infrastructure within city limits. Bellevue established its district in 2023, but no funding mechanism has been activated yet.
Key features of a Transportation Benefit District
It allows the Bellevue City Council to implement:
- A $20 vehicle registration fee for vehicles registered in Bellevue
- A 0. 1 percent increase in the city sales tax
- The city must provide annual reporting on how TBD revenues are invested.
Many cities in the region rely on Transportation Benefit Districts as a stable way to fund community transportation needs. This approach helps share the financial responsibility among everyone who uses Bellevue’s transportation system, including people who live, work, learn, and play here.
What the Transportation Benefit District means for Bellevue
If activated, the Transportation Benefit District would help the city:
Provide transportation infrastructure for growth.
Bellevue’s Comprehensive Plan, adopted in 2024, outlines growth targets for our City, including a 35,000 increase in housing units and 70,000 increase in jobs by 2044. A TBD would enable Bellevue to provide the needed transportation infrastructure to stay ahead of this growth in a safe and effective way, leverage regional transportation investments in mass transit, and also provide needed improvements in our lower growth neighborhoods.
Deliver projects that address identified needs on a faster timeline.
Bellevue maintains project lists that reflect community recommendations for needed improvements and safety interventions. Many projects, such as new sidewalks, speed bumps, and flashing crosswalks, are already identified but move slowly because of limited funding. A TBD would allow the city to complete these types of projects sooner and respond more quickly to community needs.
Build and update streets that support all modes of travel that will be lasting for current and future generations in Bellevue.
The city also uses the Mobility Implementation Plan to measure how well the transportation system is working for people walking, biking, rolling, taking transit, and driving. Dedicated funding would help Bellevue update and build streets that better serve everyone and create long‑lasting infrastructure that keeps pace with the city’s growth.
Support Bellevue’s transformational infrastructure project - Grand Connection Crossing.
TBD funding will also support construction of the Grand Connection Crossing, which is a once-in-a-generation investment that will redefine how people move through, experience, and feel at home in Bellevue. It elevates the qualities that make our city extraordinary — inspiring public spaces, multimodal travel options, and a deep commitment to livability.
Next steps
The Transportation department has recently updated its approach for organizing and prioritizing infrastructure projects that advance traffic safety, optimize the performance of our transportation system and respond to community concerns.
As a result, all projects are now categorized into five programs areas: Vehicle Mobility, Pedestrian and Bike Mobility, Neighborhood Mobility, Major Projects and Preservation & Reconstruction.
Transportation department is developing the recommended level of investments for projects within the department’s program areas and partnering with the budget office and the Office of the Grand Connection to determine TBD funding for the Crossing.
Status of the District
The TBD was established by City Council in 2023. Council is currently considering the two remaining steps necessary to provide additional transportation infrastructure funding, namely assuming and funding the TBD. These additional steps will be considered in 2026 as part of the overall citywide budget process.
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Transportation Benefit District - 2023 Activities
- June 12, 2023
- Transportation Benefit District process kick-off
- July 10, 2023
- Public hearing for the formation of the benefit district
- July 17, 2023
- Council adopted an ordinance to form a Transportation Benefit District
- July 24, 2023
- Council adopted resolution to set a date and time for a public hearing to consider assumption of the District
- August-September 2023
- Public outreach about the benefit district
- September 11, 2023
- Public hearing for council assumption of the District
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Transportation Benefit District - 2026 Activities
- April 21, 2026
- Council study session on 2027-28 budget and preliminary discussion of TBD investments
- Spring -Summer 2026
- Community engagement on TBD investments
- Fall 2026
- Potential Council action to fund the district during the annual budget process
Get involved
The Transportation Department will be engaging with community members on this topic throughout spring and summer. Upcoming information sessions, staffed events, and opportunities to request a briefing will be available on this page and shared in the department's Transportation news alerts.
Upcoming events
- Future meetings and engagement opportunities will be updated here.
Frequently asked questions (FAQs)
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. Bellevue’s Transportation Benefit District is governed by Bellevue City Council, shares the same boundaries as the city, and any funds raised by the district would be used within the city.
How can Transportation Benefit Districts raise money?
State law allows for Transportation Benefit Districts to raise money in several ways. In general, the funding options are either approved by the district's governing body or voter-approved. The governing body of the Transportation Benefit District is the Bellevue City Council, and they will determine the funding mechanism. Council-approved options include a 0.1% sales tax, a vehicle licensing fee, a building construction or land development fee, or a vehicle toll on city streets.
A 0.1 percent sales tax increase is estimated to cost the average Bellevue household about $57 per year. The city projects the sales tax increase would generate approximately $11 million annually, with Bellevue households contributing around 30 percent of the total. This estimate is based on an expected 2025 population of 158,000 and an average household size of 2.48, according to 2021 American Community Survey data. In addition to the sales tax option, a vehicle licensing fee would begin at $20 per vehicle per year.
If the district is funded in the future, how would the money be allocated?
Funds collected through a Transportation Benefit District would be allocated through the regular biennial budget process. Every other year, the City Manager presents a preliminary budget to the City Council for feedback, discussion, consideration and eventual action. More information on the budget process can be found on the city’s Budgets webpage.
What projects will the district fund?
Funds collected through the Transportation Benefit District would be directed into two spending categories:
- Capital projects in the Transportation’s strategic program areas, including Vehicle Mobility, Pedestrian and Bike Mobility, Neighborhood Mobility, Major Projects and Preservation & Reconstruction
- Delivery of the Grand Connection Crossing which is targeting a construction start date in 2028 and delivery in 2031.
Allocation levels within the strategic program areas, and between the strategic program areas and the Grand Connection Crossing are still under evaluation.
What is the process for creating a Transportation Benefit District?
There are three main steps to generating new revenue through a Transportation Benefit District. The council must first approve the formation of the district. This is followed by the council assuming responsibility of the district so they can address district business during a regular council meeting. The final step is to authorize the funding of the district. Currently, Bellevue’s Transportation Benefit District has been formed but has not been assumed or had any funding mechanism authorized.
How will the Transportation Benefit District be kept accountable?
If funded, the district must publish an annual report, indicating the status of transportation improvement costs, transportation improvement expenditures, revenues, and construction schedules, to the public and newspapers of record in the district (RCW 36.73.160). More information on this can be found on the Municipal Research and Services Center’s webpage on Transportation Benefit Districts.
2026 Background Materials
- April 21, 2026 City Council study session: 2027-28 budget workshop and preliminary discussion of TBD investments
2023 Background materials
- August 8-September 30, 2023: Summary of the Transportation Benefit District survey (pdf)
- September 20, 2023 Webinar presentation slides (pdf)
- September 11, 2023 City Council agenda item: Public hearing on the city’s proposed assumption of the benefit district.
- July 24, 2023 City Council agenda item: Resolution for the assumption public hearing.
- July 17, 2023 City Council agenda item: Ordinance establishing the Transportation Benefit District and creating a new chapter in the Bellevue City Code, Chapter 4.22.
- July 10, 2023 City Council agenda item: Public hearing on the proposed formation of a Transportation Benefit District.
- June 12, 2023 City Council agenda item: Kick-off Transportation Benefit District process
- Municipal Research and Services Center of Washington (MRSC) webpage on Transportation Benefit Districts.
- This webpage includes a downloadable list of transportation benefit districts in Washington.
- Revised Code of Washington chapter on Transportation Benefit Districts (Chapter 36.73 RCW).