Editorial: Bill seeks a compromise on Sound Transit tax

[Yo_Mama_Been_Loggin]

By The Herald Editorial Board

Pity state lawmakers who — following passage in November of Initiative 976, which promised to cut vehicle license tabs to $30, gutting billions of dollars in state transportation funding — now must square that vote with the continuing demand from many of the same constituents to fund transportation projects and ease the slow crawl of traffic on highways and interstates.

Actually, don’t pity them; this is what they signed up for.

Yet, there is a challenge in respecting what voters wanted in I-976 by drastically cutting back the revenue from car tabs while identifying sustainable revenue to replace an estimated $1.9 billion in state construction projects and another $2.3 billion in local projects across the state — including in Snohomish County — already approved in the six-year transportation plan passed last year.

Vehicle license tabs, at least until I-976, provided about a quarter of the state’s transportation revenue, with gasoline and diesel taxes funding more than 50 percent.

But also cut down by I-976 were taxing authority for local cities and counties, through Transportation Benefit Districts for road repair and maintenance; and a major funding source for Sound Transit’s voter-approved ST3 project to extend the Link light-rail system, now under construction to Lynnwood, to Everett, Tacoma and elsewhere in the transit district in King, Snohomish and Pierce counties.

-snip

Sen. Marko Liias, Senate Bill 6606 addresses I-976’s Sound Transit funding, seeking to keep the motor vehicle excise tax, but adjust the rate at which it as assessed. When the Legislature authorized Sound Transit to take the tax package to voters in 2016, it approved an older vehicle value schedule that allowed for a slower rate of depreciation than the one then in use by the state. The result was sticker-shock when the tax showed up on car owner’s license renewal bills following its approval.

https://www.heraldnet.com/opinion/editorial-bill-seeks-a-compromise-on-sound-transit-tax/

A large part of the problem is regardless of what you set the rate of assessment cars are ridiculously expensive. There's hardly anything new available for under $20,000. The state's depreciation rate is based on a percentage of what the price of the vehicle was when new.

Interesting thing is I found out if my MVET was based on the Kelly Blue Book value I'd pay more than I currently am. I have a ten year old Toyota Tacoma. Nice ride but not a luxury vehicle.

[SWBTATTReg]

1. Interesting read. I'm surprised that taxes are based upon some value of the car when purchased.

When in fact, most road use is by old and new cars of all types, regardless of age. Is there not a gasoline tax or something like this to gen funds for road repairs?

I apologize too, I tried to read your link, it wouldn't pull up for some reason...

Thanks!

[Yo_Mama_Been_Loggin]

2. The gas tax only goes to state roads and highways.

Per the the State Constitution it cannot be used for anything else.

Local roads are usually funded by property taxes and license fees. Local transit service is funded by sales taxes and license fees/taxes.

[SWBTATTReg]

3. Ah...thanks! nt