Mike Salsbury/The Olympian
Sandy Rodgers, vehicle license manager at Ralph's Thriftway, sells vehicle registrations on Friday. The state House on Friday voted 77-21 to repeal the local portion of the motor vehicle excise tax.

House votes to end local vehicle taxes

Measure trumps state high court; Locke likely to sign

BRAD SHANNON, THE OLYMPIAN

Originally published Saturday, February 23, 2002

OLYMPIA -- The motor vehicle excise tax is a pen stroke away from being declared completely dead in Washington state.

Many car owners couldn't be happier.

The state House sent a measure repealing the last legal vestige of the tax to Gov. Gary Locke on a 77-21 vote Friday.

At issue was the portion of the tax that used to go to more than two dozen transit agencies statewide, including Intercity Transit in Thurston County.

The governor has said he will sign Senate Bill 6036.

"The people thought they did it. The Legislature meant to do it. It's time to get this done," Rep. Maryann Mitchell, R-Federal Way, urged in a floor speech Friday morning as the measure came up for a vote.

Motorists buying new car license tabs at Ralph's Thriftway in Olympia generally agreed with the action.

"That's great because I don't think you should be punished for having a nice car. ... I don't know why Washington state is so money-hungry," said Val Clark, 61, of Olympia.

"All the feedback that I heard was the state was hurt by Tim Eyman's Initiative (695) and that social services and natural resource agencies suffered as a result," said Charles Adler, 52, of Olympia. "The idea that the initiative was benefiting the populace as whole is not valid."

A few people were less emphatic or neutral.

"I have to be honest, nobody has made a comment one way or another," said Sandy Rodgers of Olympia, the vehicle licensing manager at Thriftway. "People aren't really aware of how they're affected. I never minded what we had to pay before I-695 passed."

Paul Kelly, 46, of Olympia said the repeal is fine with him. A bigger concern is that the state tax system is gouging people on fixed incomes, he said.

The state could use reserves to deal with its budget problem, but also should "face it and restructure" taxes, he said.

Issue was in court

The repeal bill was needed despite two attempts by voters and lawmakers to repeal value-based vehicle taxes.

After I-695's repeal of the tax was tossed out by the Supreme Court, lawmakers repealed it in early 2000.

But the Amalgamated Transit Union and State Transit Association sued to reinstate the tax, and Thurston County Superior Court Judge Gary Tabor last year overturned the lawmakers' work.

On Feb. 14, a 6-3 majority of the Supreme Court justices agreed that the Legislature's repeal failed to remove the transit portion of the tax. Five justices felt the state should collect the transit portion of the tax, which amounted to more than $200 million a year, on behalf of local transit districts in 28 counties.

Friday's action and Locke's expected signature will leave that moot, although lawmakers are considering separate legislation that would let local governments in congested areas collect an optional excise tax for public transit, but only if local voters approve it.

Democrats divided

A version of the repeal bill had cleared the Senate several times since last year, but Democrats, who narrowly control the House, were divided on the issue.

Some like Rep. Sandra Romero, D-Olympia, wanted to keep the tax as an option for all local transit agencies, and the State Transit Association also favored that approach because the tax had been used by transit agencies for 25 years.

"I don't believe we have deliberated enough to solve our transportation problems," said Rep. Ed Murray, D-Seattle, who suggested that government was being subverted by pushing for a vote before the state's transportation funding questions are answered.

The 21 Democrats voting against the bill included Olympia Rep. Sam Hunt.

House Speaker Frank Chopp of Seattle and Majority Leader Lynn Kessler of Hoquiam favored it, with Kessler declaring: "That's what (voters) thought they repealed. That's what we thought we repealed."

Other reactions

After the vote, Rep. Richard DeBolt, R-Chehalis, said he thinks the repeal will help lawmakers' credibility with voters.

The repeal will help persuade voters to approve a package of transportation tax increases to pay for statewide road improvements, he said.

Monte Benham, new leader of the Permanent Offense group that got I-695 passed, issued a statement complaining that lawmakers were doing "a classic Olympia bait and switch."

Lawmakers are now poised to "quietly impose new MVET taxes on vehicles," he said, but could not be reached to explain exactly to which tax he was referring.

Brad Shannon, political editor for The Olympian, can be reached at 360-753-1688 and at beshanno@olympia.gannett. com. Olympian staff writer Farhanaz Kermalli contributed to this report.

How they voted

South Sound lawmakers split their votes on Senate Bill 6036, which cleared the House on a 77-21 vote Friday.

- Voting for the full repeal of the motor vehicle excise tax were Reps. Richard DeBolt, R-Chehalis; Gary Alexander, R-Thurston County; Kathy Haigh, D-Shelton; and Bill "Ike" Eickmeyer, D-Potlatch.

- Voting against it were Reps. Sandra Romero and Sam Hunt, both Olympia Democrats.

The same measure passed the Senate on Feb. 8 on a 33-15 vote.

Voting yes were Sens. Dan Swecker, R-Rochester, and Tim Sheldon, D-Potlatch. Voting no was Sen. Karen Fraser, D-Thurston County.

Locke has said he will sign a bill fixing the Legislature's defective repeal of the transit portion of the tax, which the Supreme Court ruled on a week ago, said Andrew Johnsen, the governor's transportation adviser.

The Olympian Copyright 2002

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