There have been multiple recent articles on the added 0.8% Sound Transit 3 vehicle excise tax controversy. People are characterized as having “sticker shock” when renewing their tabs, scolded with a reminder it was voted in. (I voted against it.) I didn’t realize the old depreciation schedule was resurrected, really ticking me off. So, I updated the analysis I made in 2001 to support a letter to The Herald (and then Gov. Gary Locke) to end this blatant, fraudulent, rip-off of the public.
The ST3 overvaluation (due to under-depreciating) means if you buy a new car and keep it 13 years, you’ll be overcharged by 50 percent! For a $30k car, the ST3 tax totals $1,990. Based on real value, it should only be $1,330, $660 less. (At the 1.1% combined for new ST3 and existing ST2, the $2,736 total should be $1,828, $907 less.) The reason is the scale used is not only far slower than real market value depreciation, it also has an offset for the 1st year (see https://tinyurl.com/ST3VehDep).
This is not any more acceptable than the county assessor asserting your $300,000 house is worth $450,000. I can’t conceive how the Sound Transit fraud can possibly be legal. Perhaps it’s time for a class-action lawsuit if the Legislature doesn’t fix it? Frankly, Sound Transit already owes us all a refund for the money ST2 stole from us!
A final thought on the collateral economic impact of this. I’d been considering buying a new car. Now I think I’d be wise to hold out three years until I retire and move out of the area! How many others will think the same way?
Jim Anderson
Everett
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
