Initiative 776 finishes what I-695 started — $30 tab fees

Tim Eyman

Last Monday, we filed Initiative 776 — The Right to Vote on Higher Vehicle Taxes. We have until early July to gather the necessary 198,000 signatures to put it on the 2002 ballot. The issues raised in I-776 should sound very familiar to you: $30 license tabs and voter approval for major tax increases. These policies were mandated by Initiative 695, which passed overwhelmingly in 1999. However, a lot has happened since then that requires us to "do it again."

I-695 mandated our license tab fees for our cars, trucks, motorcycles, and motor homes be no more than $30 per year. And I-695 required voter approval for any tax increase imposed by state and local governments. Although I-695 received broad support and its message was crystal clear, politicians refused to accept its requirements. Using our own tax dollars against us, politicians sued the taxpayers and managed to get the courts to invalidate I-695. But that happened in 2000, an election year. So to avoid a widespread throw-the-bums-out reaction by voters, politicians promised they would voluntarily put "major" tax increases to a public vote and got rid of the state motor vehicle excise tax — or so they said.

It turns out politicians did not repeal all of the state motor vehicle excise tax, they left a bunch of it on the books. Opponents of I-695 sued and got a judge to agree that the tax still exists. The judge delayed re-imposing the tax until the state Supreme Court rules in January 2002.

So, we are one court ruling away from license tab fees shooting right back up again. I-776 eliminates the remaining state motor vehicle excise tax that politicians failed to repeal in the 2000 legislative session. So, regardless of the Supreme Court’s upcoming ruling, I-776 kills the state MVET once and for all.

But tabs are well over $30 per year already. Why? Because of that multi-billion dollar "train to nowhere" light rail, which is billions over budget and dramatically changed from that previously represented to and approved by voters in 1996. But opponents say: "That’s not fair, it received voter approval."

When you vote for red and are given blue, that is not voter approval. Light rail today is radically different than what voters were promised in 1996. And everyone in the state is paying for this boondoggle. Regional tax dollars weren’t enough for this multi-billion dollar black hole, so light rail lobbied for and received a $15 million "downpayment" from the state in 2000 with the promise of getting even more in the future. So everyone in the state, taxpayers in Wenatchee and Spokane and Yakima, are paying for light rail. Besides, I-776 only repeals 20 percent of light rail’s funding (they get 80 percent from a local sales tax).

Furthermore, under current law and unchanged by I-776, light rail has the authority to replace or even expand, these tax revenues but only by putting a new tax revenue package before the voters. If light rail’s benefits still outweigh their costs, then convince the taxpayers who are paying for it that it’s still worth it.

Regarding voter approval for other transportation tax increases, the language of I-776 is clear: "The people expect this measure will provide a strong incentive for all taxing districts to obtain voter approval before imposing transportation-related taxes, fees and surcharges. However, if the Legislature ignores this clear message, a referendum will be filed to ensure the voters get the final say. Politicians should just do the right thing and keep their promises." As this excerpt makes clear, I-776 not only fulfills the mandates of voter-approved I-695, it simply holds politicians to the promises they made:

n "Despite the court’s ruling today, we have no intention of returning to the old system of high license tab fees. $30 license tabs are here to stay." — Gary Locke, March 15, 2000.

n "And I promise that any transportation tax increase passed by the Legislature will be sent to the voters for their approval." Gary Locke, Sept. 27, 2000.

I-776 gives voters a tremendous opportunity to send a very positive message to our elected officials: politicians should keep their promises. Please help us qualify I-776 for next fall’s ballot.

Tim Eyman is the co-sponsor of Initiative 776, The Right to Vote on Higher Vehicle Taxes and heads up Permanent Offense, a grassroots taxpayer organization. He also co-sponsored voter-approved I-695, I-722, and I-747. He lives in Mukilteo. www.permanent-offense.org 425-493-8707.