New $5 car tab fee will save state millions on third new ferry

OLYMPIA — A move aimed at saving the state money on the building of a new ferry will force many vehicle owners to pay more for their car tabs next year.

A bill heading to the governor would impose a $5 service fee on vehicle registrations and $12 fee on title transfers to finance construction of a 144-vehicle Olympic Class vessel for Washington State Ferries.

Two ferries in this class are being built now under a contract with Vigor Industrial in Seattle. Securing money for a third vessel would allow Vigor to sustain its production line and enable the state to lock in a lower price.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Without this stream of revenue, the vessel would not be built and a new price would need to be negotiated when the state could afford it. When that occurred, it’s likely the cost of labor and materials would be much higher, lawmakers and ferry officials said.

“We needed to keep building that third ferry because it saves us millions of dollars building three in a row,” said Sen. Curtis King, R-Yakima, the Republican co-chairman of the Senate Transportation Committee.

Under House Bill 1129, those who purchase their car tabs or process titles through the state Department of Licensing and county auditor will pay the new fees starting Jan. 1. Those who transact such business with a subagent are not affected because they are already charged the service fees.

All the fees will be deposited in an account used only to build state ferries.*

The bill passed by margins of 61-37 in the House and 41-8 in the Senate.

Gov. Jay Inslee is expected to sign the bill, which stands as the only transportation funding measure to emerge from the just-completed legislative session.

“This is the ‘package,’” joked Rep. Judy Clibborn, D-Mercer Island, in reference to a proposal to raise several billion dollars for transportation improvements statewide that failed to make it through the Legislature.

Funding for this third large ferry was included in proposals crafted by House Democrats and Senate Republicans but neither succeeded. Lawmakers held off on enacting the fee bill until it was certain the larger transportation package had died.

“We all knew we had to have that third ferry,” Clibborn said.

Rep. Dave Hayes, R-Camano Island, voted for it. He represents the 10th Legislative District which includes the ferry-dependent residents of Whidbey Island.

“This bill was a challenging bill for me to vote for,” he said. “I understand that there are people who don’t want to pay for our ferries. But they are part of our highway system. They are part of our commerce system.”

Though not enamored by imposing additional fees, Hayes said he was “very much persuaded” that acting now saves the state money on the cost of the ferry and preserves 100 jobs at a Freeland boat building firm involved in the project.

King said he encountered little resistance in his Republican-controlled Majority Coalition Caucus.

“The vast majority of our caucus knows we have a responsibility to our ferry system,” he said.

The first Olympic Class ferry, the Tokitae, is scheduled to begin service this summer on the Mukilteo-Clinton route. The second vessel, the Samish, is likely to serve the Anacortes-San Juan Islands route beginning next spring though the final assignment has not been determined.

They came in priced at $138 million and $126 million respectively. The negotiated priced for a third ferry, which has yet to be named, is $123 million.

Delivery of the third ferry is penciled in for the summer 2017. It is expected to serve the Seattle-Bremerton route.

Once it is deployed, the state will move to retire its 87-vehicle Evergreen State Class vessels which date back to the 1950s, according to Washington State Ferries officials.

Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.

Correction, March 21, 2014: Money from new service fees on vehicle registrations and transfers of motor vehicle titles will be deposited only in an account used to build state ferries. An earlier version of this story incorrectly reported where the money would go.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Snohomish County Health Department Director Dennis Worsham on Tuesday, June 11, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Snohomish County Health Department director tapped as WA health secretary

Dennis Worsham became the first director of the county health department in January 2023. His last day will be July 3.

Marysville is planning a new indoor sports facility, 350 apartments and a sizable hotel east of Ebey Waterfront Park. (Olivia Vanni / The Herald)
New report shifts outlook of $25M Marysville sports complex

A report found a conceptual 100,000-square-foot sports complex may require public investment to pencil out.

Police Cmdr. Scott King answers questions about the Flock Safety license plate camera system on Thursday, June 5, 2025 in Mountlake Terrace, Washington. (Olivia Vanni / The Herald)
Mountlake Terrace approves Flock camera system after public pushback

The council approved the $54,000 license plate camera system agreement by a vote of 5-2.

Cascadia College Earth and Environmental Sciences Professor Midori Sakura looks in the surrounding trees for wildlife at the North Creek Wetlands on Wednesday, June 4, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
Cascadia College ecology students teach about the importance of wetlands

To wrap up the term, students took family and friends on a guided tour of the North Creek wetlands.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

Edmonds Mayor Mike Rosen goes through an informational slideshow about the current budget situation in Edmonds during a roundtable event at the Edmonds Waterfront Center on Monday, April 7, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds mayor recommends $19M levy lid lift for November

The city’s biennial budget assumed a $6 million levy lid lift. The final levy amount is up to the City Council.

A firefighting helicopter carries a bucket of water from a nearby river to the Bolt Creek Fire on Saturday, Sep. 10, 2022, on U.S. 2 near Index, Washington. (Ryan Berry / The Herald)
How Snohomish County property owners can prepare for wildfire season

Clean your roofs, gutters and flammable material while completing a 5-foot-buffer around your house.

(City of Everett)
Everett’s possible new stadium has a possible price tag

City staff said a stadium could be built for $82 million, lower than previous estimates. Bonds and private investment would pay for most of it.

Jennifer Humelo, right, hugs Art Cass outside of Full Life Care Snohomish County on Wednesday, May 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘I’ll lose everything’: Snohomish County’s only adult day health center to close

Full Life Care in Everett, which supports adults with disabilities, will shut its doors July 19 due to state funding challenges.

Logo for news use featuring Snohomish County, Washington. 220118
Snohomish County Board of Health looking to fill vacancy

The county is accepting applications until the board seat is filled.

A recently finished log jam is visible along the Pilchuck River as a helicopter hovers in the distance to pick up a tree for another log jam up river on Wednesday, June 11, 2025 in Granite Falls, Washington. (Olivia Vanni / The Herald)
Tulalip Tribes and DNR team up on salmon restoration project along the Pilchuck River

Tulalip Tribes and the state Department of Natural Resources are creating 30 log jams on the Upper Pilchuck River for salmon habitat.

Everett High School graduate Gwen Bundy high fives students at her former grade school Whittier Elementary during their grad walk on Thursday, June 12, 2018 in Everett, Wa. (Olivia Vanni / The Herald)
‘Literally the best’: Grads celebrated at Everett elementary school

Children at Whittier Elementary cheered on local high school graduates as part of an annual tradition.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.