The Clallam County Public Transportation Benefit Area (PTBA) was formed on July 24, 1979. Voters in Clallam County approved the collection of a sales tax not to exceed 0.3 percent of one cent to fund service in the PTBA. Through 1999 this local sales tax revenue was matched by revenues generated from the state motor vehicle excise tax (MVET). On April 25, 2000, Clallam County voters approved the collection of an additional 0.3 percent of one cent to replace revenue lost by the elimination of the MVET, thus providing a stable revenue stream to pay for public transportation services.
CTS began operations in October of 1980. The agency started service with a fleet of twelve 22-passenger vehicles operating on ten routes. One year later, in 1981, paratransit operations began through contracted arrangements with local private transportation companies. Since then, CTS has experienced incremental changes in fleet size, operational characteristics, and service area. In 1984 the west end of the county was annexed into the PTBA. In April 2011, CTS assumed the day-to-day operations of providing the county's public specialized paratransit service to persons who have difficulty using the regular fixed route public transit service due to impairment or age.
CTS is organized into three departmental areas: Operations, Maintenance, and Administration. Oversight of all agency operations is the responsibility of the General Manager. Legal counsel is at the disposal of the General Manager as needed. Agency policy oversight is the responsibility of an appointed panel of elected officials. The three municipalities within the service area (Forks, Port Angeles, and Sequim) and Clallam County each appoint two elected representatives to the CTS Board.