What is the Transportation Benefit District (TBD)?

The State Legislature created a section of law in 2005 which allows local governments to create a Transportation Benefit District (TBD) as a way to help fund improvements to local streets, sidewalks, and trails. A TBD is a specific district where the revenue is collected, and that money is legally required to be used for transportation purposes only!

In 2012 Lynden voters approved an increase in the sales tax rate from 8.5% to 8.7% for transportation improvements under a TBD. This 0.2% sales tax increase translates to a 20-cent increase in taxes on a $100 purchase.

The TBD allows the City to collect funds from non-residents as well. Anyone who makes a purchase in Lynden (resident or non-resident) benefits from Lynden's transportation system, so it makes sense that they contribute to help us keep it in good condition. Lynden residents who buy goods in Ferndale and Bellingham already are contributing to streets in those communities though their respective TBDs.

In November, 2022, voters confirmed the renewal of the TBD for an additional ten-year period (January, 2023 to December, 2032).

2022 Annual Report (PDF)