Chehalis looks to renew local sales tax to support transportation projects

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The Chehalis City Council recently voted to place a ballot measure to renew the city’s existing transportation benefit district (TBD) sales tax on the November general election ballot.

The measure would renew the city’s existing 0.2% sales tax to support its transportation benefit district for another 10 years.

Transportation benefit districts are a special taxing district that can be established by cities in Washington state to help fund transportation and pedestrian safety projects.

According to the City of Chehalis, if the local sales tax is approved by the voters, the revenue would provide dedicated local funding for street improvements, pedestrian safety projects, traffic congestion relief and the local matching funds needed to secure state and federal transportation grants.

“This funding has helped improve streets, sidewalks and pedestrian safety throughout Chehalis while bringing millions of dollars in state and federal grants into our community,” Chehalis Public Works Director Lance Bunker said. “Renewing the transportation benefit district at the existing rate will help us keep that work moving forward.”

The Chehalis Transportation Benefit District was established in 2017, and since then has generated approximately $11.2 million for transportation projects throughout the city, including improvements to Northwest Pacific Avenue, Southwest Chehalis Avenue and pedestrian safety enhancements along Southwest 13th Street.



The city has also virtually doubled that money by using it as matching funds to secure state and federal transportation grants. Altogether, the tax revenue has brought in an additional $12.9 million in grant funding.

According to the City of Chehalis, those grants have supported investments in the Downtown Rejuvenation Plan, which will improve safety, accessibility, mobility and economic vitality in downtown Chehalis.

Revenue from the renewed sales tax levy is expected to fund projects such as Safe Routes to School pedestrian and bicycle improvements, the Chamber Way Bridge replacement and future phases of the Downtown Rejuvenation Plan.

The City of Centralia placed its own local transportation benefit district sales tax on the general election ballot in the fall of 2025 and saw overwhelming support for the measure.

Additional information about the Chehalis Transportation Benefit District renewal is available on the city’s website at ci.chehalis.wa.us/publicworks/page/transportation-benefit-district-renewal.