Washington Supreme Court Strikes Down Car Tab Initiative

OLYMPIA, WA — The Washington State Supreme Court on Thursday ruled Initiative 976 unconstitutional, striking down a measure approved by voters nearly a year ago that promised $30 car tabs. Thursday's ruling means car-tab values will stay where they are, both on the state and local level.

The ballot measure, championed by anti-tax activist Tim Eyman, passed with 53 percent of the statewide vote last November, while about 60 percent of King County voters rejected it.

Soon after the measure passed, a coalition of cities, counties and Garfield County's transportation agency sued over the initiative's constitutionality. They argued that it illegally covered too many subjects, falsely suggested previously approved taxes would not be repealed and promised $30 car tabs, when the lowest possible amount would be $43.25.

In February, a King County judge rejected most of the legal challenges, but implementation of the law has been on hold pending a ruling from the state's highest court.

In a decision signed by eight justices Thursday, the court found the initiative failed to adhere to the single-subject rule and that its title was "unconstitutionally deceptive and misleading."

"The average informed lay voter would not think the initiative eliminates the statutory mechanism for voters to approve changes in the future. We are unpersuaded by the State's argument that this clause is not misleading because future legislation could create a new mechanism to permit voters to approve taxes. The ballot statement of an initiative concerns the effect of the initiative. It is not the place for truisms about legislative power. We hold that the initiative violates the subject-in-title rule because it is deceptive and misleading since the average informed lay voter would conclude voter approved taxes - such as those used to fund local and regional projects across our state would remain."

Soon after the measure passed, the state Office of Financial Management estimated a $4 billion hit to tax revenue by 2025, gutting transportation funding and cutting off money to dozens of cities that rely on car-tab fees to fund road projects and metro bus service. The initiative also removed the authority to impose any car-tab taxes on the local level.

King County Executive Dow Constantine released a statement Thursday morning, applauding the court's decision. It reads in part:

"Today's ruling resoundingly rejects this unconstitutional measure, just as the people of King County rejected it at the polls, and we can now move forward to build a transportation system and economy that gives every person the opportunity to create a better future.

I-976 threatened to reduce or eliminate local and voter-approved funding for public transportation, bridges and roads, and other critical infrastructure and services across our state. It jeopardized nearly $100 million in funding in King County, including Regional Mobility Grant Program awards that fund RapidRide expansion and reliability improvements, and funding for transit serving persons with disabilities."

In Seattle, where voters had previously approved a $60 car-tab fee to fund transit, Mayor Jenny Durkan praised the court's decision as "justice for Seattle voters."

Seattle Department of Transportation Director Sam Zimbabwe called the initiative a "dangerous derailment" to transit plans and welcomed Thursday's ruling as "an incredible victory."

Tim Eyman, the initiative's sponsor, held a news conference in Olympia following the decision, decrying the court's ruling as "infuriating," partisan and against the will of the people.

"I was clearly committed to this idea and felt confident that it would make it through the gauntlet, even with this liberal Supreme Court," Eyman said. "[It] doesn't mean we can't do it again, I'm more than willing to do it again...but I shouldn't have to. The voters shouldn't have to. They voted three times to get rid of this dishonest, artificially-inflated vehicle valuation schedule."

Eyman was joined by Republican State Rep. Jim Walsh who suggested lawmakers should take the next step.

"I think the weight is on the legislature and the executive now to act," Walsh said."It's not appropriate at this point in time to be talking about a fourth pass at the initiative. It is more appropriate to say the weight's on us, elected officials, the legislature and the governor and even the state Attorney General."

As Crosscut's Melissa Santos reports, Washington courts have now struck or partially blocked nine of Eyman's measures, including two previous efforts to slash car-tabs.

Attorney General Bob Ferguson, whose office was tasked with defending Initiative 976, blamed Eyman for its failure in a statement published Thursday afternoon.

"I’m proud of my legal team, who worked long hours to defend the will of the voters, arguing successfully at the trial court that Initiative 976 was constitutional.

"To be candid, we knew this would be a difficult case. I-976 is the latest in a long list of Eyman tax initiatives struck down by the courts. In fact, Tim Eyman has never written a successful tax initiative that passed legal muster. Every one of his tax initiatives has been thrown out or partially blocked by the courts.

"Tim Eyman will, of course, do what he has done throughout this case — blame everyone but himself. He will again blame my outstanding legal team, even though the Supreme Court allowed interveners to present Eyman’s arguments. He will again blame my office for language in the ballot title that he specifically requested to be included in the title, and that was pulled word-for-word from his initiative. He should look in the mirror and apologize to voters for once again sending them an initiative that failed to survive a legal challenge and deliver on its promises."

Read the state Supreme Court's full ruling below: