Bill would let cities raise car-tab fees

PAUL QUEARY, THE ASSOCIATED PRESS

Originally published Thursday, February 14, 2002

OLYMPIA -- Even as tax rebels collect signatures to abolish the $15 county car-tab fee, lawmakers in the Senate are pushing a bill that would allow the fees to more than triple -- to $50.

Senate Bill 6649 would also attempt to reinstate a street utility charge that was ruled unconstitutional by the Washington Supreme Court in 1995.

"It's local options for local governments to fund transportation," said Sen. Mary Margaret Haugen, D-Camano Island, the Senate Transportation chairwoman who sponsored the bill.

Local government revenue took a hit when the motor vehicle excise tax was repealed. Now local officials are looking at a triple whammy: last year's property tax limitation initiative, a declining economy and a state budget crisis that will likely force cuts in state aid to cities and counties.

Only counties are allowed to collect the fee now, but SB 6649 would extend the privilege to cities, with a $50 cap on the total amount charged on each vehicle. Only King, Pierce, Snohomish and Douglas counties levy the $15 vehicle licensing fee.

The bill was introduced at the request of the Association of Washington Cities, which represents 280 cities and towns, including many that are struggling to build and expand streets to keep up with growth, said Stan Finkelstein, the group's executive director.

"We're trying to find the means of funding those responsibilities," Finkelstein said.

The bill squeaked out of the Senate Transportation Committee on Tuesday on a party-line vote, with all seven minority Republicans voting no.

"This is a huge amount of money and a huge tax increase on the state of Washington," said Sen. Don Benton, R-Vancouver. He argued that the bill was counter to the wishes of the voters who approved Initiative 695, which mandated $30 car tabs. County and city councils could approve the fee without voter approval, Benton said.

Most residents of King, Snohomish and Pierce counties already pay much more than $30 for their tabs, because Sound Transit levies a motor vehicle excise tax to pay for light rail, express bus service, and the Sounder commuter train.

The $15 fee, and Sound Transit's excise tax, would be repealed by Initiative 776, the latest initiative sponsored by tax rebel Tim Eyman. Eyman contends the measure would deliver the $30 tabs promised by I-695, which was thrown out by the courts.

The bill would also allow cities to form fee-charging street utilities that would charge a fee for the maintenance and operation of roads.

The Olympian Copyright 2002

back to Taxes 2002 index