Transportation Development Tax

 

 
On Tuesday November 4, 2008 the citizens of Washington County voted for a Transportation Development Tax (TDT). The TDT replaced the previous tax, known as the Traffic Impact Fee (TIF), passed county-wide in 1990. The TDT went into effect on July 1, 2009, increasing the previous TIF rates as well as updateing and clarifying various procedures. The TDT essentially doubled the TIF rates developers pay for the impact new development has on the transportation system.

 

The TDT is levied countywide including within the Cities. The new rate is phased in over 4 years, through July 1, 2012. After July 1, 2013 the rates can increase at a rate of no more than 10% per year, based on an index tracking the costs of road construction material, labor, and right-of-way. Non-residential developments which had land use approvals prior to July 1, 2009 are charged based on the prior TIF rates. Developments may also receive credits for constructing eligible transportation improvements.

 

The TDT is based on the estimated traffic generated by each type of development. All revenue is dedicated to transportation capital improvements designed to accommodate growth. Eligible projects are on major roads, including sidewalks and bike lanes, as well as transit capital projects (such as bus shelters).

 

The TDT is not a property tax. New development is required to pay the tax when a building permit or occupancy permit is issued. Remodeling, temporary uses, and state and federal government buildings are exempt.

 

The concept of the TDT was thoroughly reviewed by the Washington County Coordinating Committee (WCCC), a partnership of mayors, County Commissioners and other elected officials representing local governments.  The WCCC was formed in the 1980s to make decisions about transportation issues of countywide significance. 

  

 

 

 

 

In light of current economic conditions, Ordinance 729 was approved by the Board of County Commissioners on October 20, 2009, and is effective December 1, 2009. Ordinance 729 provides a temporary discount of the Transportation Development Tax rates during the phase-in period.  

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