Transportation Benefit District - Proposition 1 Sales Tax Increase

City of Oak Harbor Transportation Benefit DistrictThe City manages approximately 71 centerline miles of local, collector, minor arterial, and principal arterial streets.

Proposition 1 - Sales Tax Increase

Thank you to the voters for approving Proposition Number 1 (Resolution 19-16 (PDF)) on the November 2019 General Election Ballot.

The City of Oak Harbor's TBD Number 1 imposes a sales and use tax of two-tenths of one percent (0.2%) pursuant to Revised Code of Washington (RCW) 36.73.040(3)(a), RCW 36.73.065 and RCW 82.14.0455. The purpose of the tax is to supply funding for the TBD Projects. The TBD Projects consist of the transportation improvement projects described in the City's six-year Capital Improvements Plan. A notification of the sales tax increase was provided to the community in multiple formats including Facebook.

April 1, 2020 - New Tax Rate Takes Effect

Beginning April 1, 2020, the City of Oak Harbor's local sales tax rate will increase from 8.7% to 8.9% for a period of 10 years. Note, RCW 82.14.055 restricts when local sales and use taxes may go into effect.

July 1, 2020 - Project Funding Received

Additional tax revenue is transferred to City for projects.

Update - January 2025
The city continues to annually pave local streets with Transportation Benefit District funding, most recently NE 1st Ave and SW 4th Ave. We have been seeing paving costs coming in higher than what was assumed in the 2018 pavement rating report, significantly outpacing recent inflation. As part of the 25/26 budget City Council approved a Transportation Comprehensive Plan update and once that is complete we will have a better idea of paving outcomes.


Project Map

The project map (PDF) shows the list of project areas for overlay and chip seal projects.

CLICK HERE to submit any questions or concerns

Annual Reports

TBD screenshotTBD2022 Annual Transportation Benefit District Report Cover Image2021 Transportation Benefit District Annual Report Cover2020 Transportation Benefit District Annual Report Cover


Background Resources