Sound Transit board ponders car tab fury

OLYMPIA — This could be interesting.

Thursday afternoon directors of Sound Transit will hold their regular monthly meeting in Seattle. It will be their first sit-down since an outbreak of car tab fury in parts of Snohomish, King and Pierce counties.

This furor infecting people living within the boundaries of the regional transit authority is a side-effect of Sound Transit 3, the $54 billion expansion of bus and light rail service approved by voters in November.

Its passage means those in the taxing district must swallow a large tax cocktail consisting of an increase in car tab fees, a hike in the local sales tax and a new property levy.

It’s not going down easy for everyone. Since car tab renewal bills started arriving last month, people have become aware Sound Transit may be getting more out of their pocket than even they expected.

Under the ST3 measure, the motor vehicle excise tax rate nearly quadrupled from 0.3 percent to 1.1 percent. Because Sound Transit uses an outdated depreciation model, it is applying that rate on vehicles with inflated values thus boosting the amount of bills and revenues to the agency.

Sound Transit is now committed to switching to a newer depreciation method in 2029. Its executives have told state lawmakers if forced to change in 2018, the agency would collect an estimated $2 billion less in car tab tax receipts in that 11-year period— money already pledged to ensure light rail gets to Everett and Tacoma in the next quarter century.

Snohomish County Executive Dave Somers, who is Sound Transit’s chairman, said he will ask the board Thursday to formally direct staff to work with folks in the Legislature on ways to respond to concerns with the excise tax approach without endangering the schedule of projects promised in the package approved by voters.

Thursday might be a good time for board members to get other questions answered as well.

Seeds of this controversy were planted in 2015 when lawmakers included authority for Sound Transit to raise taxes for ST3 in the $16 billion state transporation improvement package.

Sound Transit’s brain trust crafted the language tucked into the 2015 bill. It effectively ensured any new car taxes would be calculated using the 1996 method of depreciation rather than a 2006 update developed by the state.

Somers and Everett Councilman Paul Roberts, another Sound Transit board member, said they recall plenty of conversations on how voters were being asked to approve a significant tax package.

But they — and probably their fellow board members as well — could not recall any conversation on which vehicle depreciation method would or should be used. If it did come up, it was not presented as a notable policy decision.

Thursday offers a chance to find out exactly when this $2 billion decision was made, by whom and why.

Meanwhile, the outbreak of fury has spread to Olympia where for the past month Sound Transit’s been a punching bag for its critics in the Legislature.

Republicans in the House and Senate are pounding them with bills to force the bus-and-rail megapower to change practices immediately and to block the state Department of Licensing from collecting Sound Transit’s share of car tab taxes until it happens.

Democrats in the two chambers are less aggressive, jabbing with bills directing the regional transit authority to use the newer depreciation schedule on future bond sales so as not to interrupt the current revenue flow. They also have bills to provide rebates to lower income individuals.

There are roughly a dozen MVET-inspired pieces of legislation parked in the House and Senate transportation committees. The leaders of those panels are watching to see what directors of Sound Transit do.

That adds further interest in this week’s gathering.

Political reporter Jerry Cornfield’s blog, The Petri Dish, is at www.heraldnet.com. Contact him at 360-352-8623; jcornfield@heraldnet.com. Twitter: @dospueblos.

FYI

What: Sound Transit Board of Directors meeting

When: 1:30 p.m. Thurs. Mar 23

Where: Union Station, Ruth Fisher Boardroom, 401 S. Jackson St., Seattle.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Firefighters respond to a 911 call on July 16, 2024, in Mill Creek. Firefighters from South County Fire, Tulalip Bay Fire Department and Camano Island Fire and Rescue left Wednesday to help fight the LA fires. (Photo provided by South County Fire)
Help is on the way: Snohomish County firefighters en route to LA fires

The Los Angeles wildfires have caused at least 180,000 evacuations. The crews expect to arrive Friday.

x
Edmonds police shooting investigation includes possibility of gang violence

The 18-year-old victim remains in critical condition as of Friday morning.

The Everett Wastewater Treatment Plant along the Snohomish River. Thursday, June 16, 2022 in Everett. (Olivia Vanni / The Herald)
Everett council approves water, sewer rate increases

The 43% rise in combined water and sewer rates will pay for large infrastructure projects.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

Riley Boyd, 6, left, and sisters Vivienne Boyd, 3, ride a sled together down a hill at Anderson Center Field on Thursday, Feb. 6, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Snohomish County shouldn’t expect snow and cold to leave any time soon

Residents can expect a reprieve from the snow until possibly this weekend. Colder than normal temperatures are expected to remain into next week.

Modern DNA tech comes through again for Everett police in 1989 murder case

Recent advances in forensic genealogy led to the suspect’s arrest in Clark County, Nevada.

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.