Transportation Improvement Districts (TID) / Transportation Development Districts (TDD)
A transportation improvement district or transportation development district is a special assessment district to improve the transportation system - road or transit related - within a designated zone. This type of special assessment district often adopts a larger, areawide approach that generally considers benefits on a programmatic basis rather than more targeted "special benefits" on a project-specific basis. The designated zone may cross jurisdictional boundaries among several local or regional government entities and, as with any special assessment district, requires a majority vote or petition by property owners to establish.
With more than one jurisdiction participating, a TID or TDD provides a forum for cooperation and the pooling and targeted management of transportation funding resources to carry out specific system improvements. These improvements must originate from an adopted land use or development plan. An entity such as a county commission can act as the district's lead entity, and a board of directors from the district's constituent members governs its operation.
The district generally functions as a separate governmental entity with authority granted by state legislation to levy a special assessment on property owners (property tax levy) or consumers (sales tax levy) who benefit from the improvement in the district. The district may also have the power to issue debt against future special assessment revenues and enter into contracts related to the improvement.
A TID or TDD can help streamline delivery of what otherwise would have been a challenging project to implement by only one local entity within the district. Districts may be in a better position to respond to projected growth in their regions and often promote selected transportation system improvements as drivers of economic development.