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Several bills that would lead to different levels of relief for expensive car tabs were heard in House and Senate committees.

搁贰尝础罢贰顿:听Decoding the lengthy saga to lower state car tab fees

It is a fight that has been playing out over the last three years, ever since voters approved the $54 billion light rail expansion in 2016, that included sales and property tax increases, and — much to the shock of many drivers — tripled car tab fees.

There have been several proposals to cut car tab fees in the past few legislative sessions, and some have come close to passing, ultimately coming up short.

According to Republican State Senator Steve O’Ban, that has put the Legislature right where it deserves to be: Facing an initiative from local activist Tim Eyman to dramatically slash car tabs to a $30 flat rate.

鈥淢any of us anticipated that if we did fail to do our job as leaders we would see an initiative just like the one we鈥檙e hearing today. That is far more substantial in terms of its cuts than anything proposed by either party over the last several years. So now, we find ourselves in the very predicament that was entirely predictable 鈥� and that鈥檚 because we did nothing,鈥� O鈥橞an told the Senate transportation committee Tuesday.

Here is the predicament he’s talking about:

Tim Eyman got the hundreds of thousands of signatures needed to qualify for the ballot. But this is an initiative to the Legislature, which means lawmakers can approve it, do nothing, or come up with an alternative that would go to the ballot alongside Eyman’s initiative in November.

Eyman’s $30 tab bill got hearings in both the House and Senate Tuesday, where he pointed to the more than 350,000 signatures he got as proof of support for the plan. Dozens showed up to testify against his plan, including Sound Transit, which says Eyman’s proposal would gut their budget by $20 billion, and destroy transit expansion plans.

Many transit advocates urged lawmakers not to offer an alternative, believing Eyman鈥檚 proposal would fail. More than that, though, there’s a concern that a separate, more modest car tab relief measure would still negatively impact the transit budget.

Many transit advocates urged lawmakers not to offer an alternative believing Eyman鈥檚 proposal would fail, but worrying another more modest car tab relief measure that would also have a negative impact on transit expansion could pass.

Eyman鈥檚 $30 car tab proposal is almost certain to end up on the ballot.

That leaves lawmakers to figure out whether or not they should offer an alternative, and if so which one?

O’Ban told a Senate committee it should be — which essentially uses Kelly Blue Book vehicle values to calculate the car tab tax — would essentially cut car tabs by more than half, and provide refunds for the difference drivers have paid since ST3 taxes took effect. The system in place right now is an outdated schedule from the 90s that overvalues vehicles.

鈥淲e have an opportunity before us to listen to individuals who find this to be a punishing, regressive tax, and forcing them in some cases to choose between whether they pay for groceries that month, or pay for the car they need to get to work, and here we鈥檝e done nothing,鈥� O鈥橞an said.

鈥淚 urge the body this year to do something,鈥� O鈥橞an added.

搁贰尝础罢贰顿:听GOP lawmaker eyes cheaper car tabs, Sound Transit reform

But Redmond Mayor and Sound Transit Board Chair John Marchione warned against it.

鈥淪enate Bill 5042 would have a major fiscal impact to the agency. From 2017 to 2041, it would cause a revenue loss of $5 billion, and a debt service increase of $7 billion, resulting in a total impact of $12 billion. This bill would have a significant detrimental impact to Sound Transit鈥檚 ability to deliver the plan approved by voters in 2016,鈥� Marchione warned the committee.

But O’Ban had a question for Marchione.

鈥淲hen you went to the voters with ST3, you said you needed $54 billion dollars, my understanding is now 鈥� based upon growth, so forth 鈥� that revenue is expected to be around $63 billion instead of 54?鈥� O鈥橞an asked.

鈥淚 don鈥檛 know the answer to that question sir, I鈥檓 sorry,鈥� replied Marchione.

O鈥橞an fired back, saying it was his understanding that Sound Transit was actually seeing greater revenue from the taxes that came with ST3 — sales, property and car tab tax increases — than when Sound Transit put the package to voters.

鈥淪o assume I鈥檓 correct, on that number — that鈥檚 an additional $9 billion that you鈥檙e likely to receive that you didn鈥檛 anticipate when you went to the voters in 2016. That鈥檚 more than enough to come up with the claimed $5 billion loss that you suggest, wouldn鈥檛 you agree?鈥� O鈥橞an asked.

Marchione did not agree.

鈥淣o, I wouldn鈥檛 sir, with all due respect. If we had 9 billion extra dollars, our expenses, in terms of constriction costs and materials and so forth, probably went up even faster than that. That鈥檚 what revenues and local governments have shown over the past five years,鈥� Marchione countered.

鈥�$9 billion sounds like a lot, but expenses have gone up equally, and we wouldn鈥檛 be telling you that we couldn鈥檛 deliver our program if that were the case,鈥� Marchione added.

While O鈥橞an lobbied for in the Senate Transportation Committee, Democratic Rep. Mike Pellicciotti was pushing his car tab relief bill over in the House Transportation Committee.

搁贰尝础罢贰顿:听Sound Transit lawsuit kicks off over ST3 car tab fees

He faced similar opposition from transit advocates, though his bill is more modest, and would have less of an impact on Sound Transit than O鈥橞an and Eyman鈥檚 proposals.

Pellicciotti鈥檚 proposal would stop using the old inflated valuation system, and calculate car tabs for vehicles up to 10 years old using the more accurate 2006 schedule, which he says is simply the fair thing to do for taxpayers.

The public expects that any tax that鈥檚 implemented, they鈥檙e being taxed on the accurate value of their property. I feel very strongly that if we don鈥檛 meet that expectation, people will question their next school bond initiative, their next school bond levy, the next transit measure that is put forward, taxing on investments — a range of taxes — people should be able to debate and understand what the tax rate is, but there should not be a whole lot of controversy over whether or not the actual value of their property is accurate or not when it鈥檚 taxed.

His bill has many co-sponsors, and with Democrats holding significant majorities in the House and Senate. it’s considered the most likely to pass and end up as an alternative to Eyman鈥檚 on the ballot.

However, O鈥橞an鈥檚 bill also has Democratic co-sponsors, as does his bill requiring the Sound Transit board be directly elected, a bill he鈥檚 introduced in the past, but that he believes actually has a chance this session with first-time bi-partisan support.