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Taxes 2002 Tuesday, February 19, 2002

'Infighting' stalls decisions on transportation package

DAVID AMMONS, THE ASSOCIATED PRESS

Originally published Tuesday, February 19, 2002

OLYMPIA -- Gov. Gary Locke and Senate Democrats want nine cents. House Republicans propose seven cents. House Democrats soon will suggest eight cents.

These narrow differences over the size of a proposed gas tax increase are only the tip of the iceberg as behind-the-scenes transportation negotiations escalate in the Washington Legislature.

If lawmakers cobble together a plan, it's almost certainly headed to the statewide ballot.

The gas tax is the most visible -- and contentious -- aspect of the debate over transportation funding. But lawmakers also are struggling to agree on a project list, financing of regional "megaprojects," and repeal of about $200 million worth of car-tab taxes.

Overlaying that complicated package has been debate over whether to send the statewide tax plan and construction project list to voters. Locke and the Senate have balked, but House leaders now say it's a foregone conclusion that voters will get the last word.

Senate Transportation Chairwoman Mary Margaret Haugen, D-Camano Island, on Monday said the "infighting" over complicated and politically difficult transportation decisions makes her wonder if lawmakers can put together a package in the remaining weeks of the 60-day legislative session.

If the Legislature insists on placing the tax package on the statewide ballot, "I don't think it will pass, quite frankly. I'll be real honest with you -- I don't think it will. It takes a lot of effort, a lot of education, to let voters know what they're going to get for what they'd pay," she said.

Here's a look at some of the latest developments:

- Gas tax: House Democrats will propose an 8-cent-per-gallon increase in the state's 23-cent gasoline tax, phased in over three years, along with trucking fees and other taxes, aimed at raising about $6.1 billion over the next decade.

House Speaker Frank Chopp, D-Seattle, has been promising the plan since the third week of the session. Transportation Chairwoman Ruth Fisher, D-Tacoma, says the plan probably will be ready Wednesday.

House Republicans floated their statewide plan Friday. It includes a three-step, 7-cent increase in the gas tax, plus a 3-cent surcharge in diesel fuel tax, a 15 percent increase in trucking fees, and sales tax revenue from new construction projects and car sales. Their plan would bring in about $5.5 billion.

The governor and Senate have advocated an $8 billion construction program, financed in part by a three-step, 9-cent increase in the gas tax.

- Regional: Both houses have agreed to authorize local voter-approved financing of transportation projects. The rival plans have some key differences, however, including whether the program would be largely roads only, whether counties outside central Puget Sound could participate, and whether city and county streets could be financed.

- Car tabs: Fisher says the House will go along with the Senate's decision to repeal the last portion of the state motor vehicle excise tax. The state Supreme Court held last week that earlier legislation had not entirely repealed the tax. The decision left about $200 million worth of annual tax authority on the books, to be funneled to local transit districts.

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