Tim Eyman, center, holds up a sign in support of Initiative 695 during a meeting with members of the Lewis County Republican Club at Ribeye in Napavine in September, 2019.
Initiative 976, which caps annual state and local car tab fees at $30, takes effect Dec. 5, but that doesn’t mean vehicle owners the next day are going to be writing a check for $30 to renew their plates.
In addition to making computer changes, the state Department of Licensing is working with the Attorney General’s Office and the state Department of Revenue to “understand the impacts of the initiative” and answer the “unknowns,” said DOL spokesperson Christine Anthony.
In addition to capping annual state and local car tab fees at $30 for vehicles weighing 10,000 pounds or less, I-976 would:
• Eliminate the additional fee the state charges based on the weight of a vehicle, which can range from $25 to $65.
• Bar local governments from tacking on car tab fees through transportation benefit districts. Currently, 61 cities including Tacoma, Olympia, and Bellingham raise revenue that way to help pay for transportation projects.
DOL says owners of basic passenger vehicles start with the same fee of $43.25 and “things like vehicle weight, location and taxes determine the final amount.”
That $43.25 consists of a $30 basic renewal fee, $4.50 county filing fee, 75-cent license service fee and $8 service fee.
The $30 basic renewal fee stays in effect under I-976, Anthony said.
What about the $4.50 county filing fee, 75-cent license service fee and $8 service fee? Will those still be charged?
“Those are the kinds of things we’re going through right now, so I don’t really have any specifics,” Anthony said. “It’s too early for us to say.”
Initiative sponsor Tim Eyman said Tuesday that vehicle owners would pay $43.25 — not $30 — when I-976 takes effect because the initiative did not repeal the $4.50 county filing fee, the 75-cent license service fee and the $8 service fee.
Eyman said the initiative — which stated, “State and local motor vehicle license fees may not exceed $30 per year for motor vehicles” — was not deceptive.
“The effort is always you want to keep your initiative simple, straightforward, and it does what you want it to do. The (basic renewal fee) is $30. But when it comes to these ancillary fees, it just wasn’t worth breaking your pick on and have the measure be two or three times longer,” he said.
Vehicle owners who live in the urban areas of Pierce, King and Snohomish counties now pay a regional transit authority tax to Sound Transit when they pay for their car tabs. Sound Transit calls it a motor vehicle excise tax, or MVET.
When people renew their tabs or register a vehicle in their name, a fee is calculated based on the vehicle manufacturer’s suggested retail price and a valuation schedule based on the age of the vehicle, DOL said.
When will that fee for transit projects go away?
DOL said it’s unclear.
I-976 would require Sound Transit to retire or refinance bonds funded through the charge of an MVET if the bond contracts allow for those actions earlier than scheduled. Once that happens, the authority to impose the MVET would be repealed automatically.
If the transit agency is not able to completely refinance or retire its bonds by March 31, 2020, then the voter-approved MVET would remain unchanged, according to the Attorney General’s explanatory statement of I-976.
Effective April 1, 2020, the maximum rate of future voter-approved MVETs would be reduced from 0.8 percent to 0.2 percent, the Attorney General’s office said.
Sound Transit spokesperson Geoff Patrick said the issues of whether Sound Transit can retire bonds early is expected to come up when the board of directors meets Nov. 21.
I-976 also would require Sound Transit to use a valuation schedule on any future MVET motor vehicle excise taxes based on the Kelley Blue Book. That would scrap the transit agency’s use of an inflated valuation formula for vehicles that pumps more money into Sound Transit’s coffers.
DOL uses an example of a 2012 Toyota Prius whose owners currently pay an MVET of $150.
How much would that be using the Kelley Blue Book?
“I don’t know how that is going to work,” Anthony said. “There are a lot of layers to (the Kelley Blue Book). That is not something we have a process for now. Is it in fair good condition, is it in good condition, is it in excellent (condition)?”
Does DOL know when it will have answers?
“We’re hopeful we can get there soon because we know people want to know,” she said.
King County and the city of Seattle said they plan to file a lawsuit challenging I-976 and seeking an injunction to prevent it from taking effect while the legal battle is waged. Late last week, the Washington State Transit Association Board of Directors authorized legal action against the initiative.
