Car Tab Fees: Proposed Law Would Require Sound Transit To Use New Formula

UNIVERSITY PLACE, WA - State Sens Steve O'Ban, R-University Place, and Dino Rossi, R-Sammamish, have introduced a new bill to mitigate car tab fee increases related to the new Sound Transit taxing measure.

To achieve that, O'Ban and Rossi's Senate Bill 5893 would prohibit the Department of Licensing from collecting fees for Sound Transit if the agency continues use manufacturer's suggested retail prices (MSRP) to calculate car values, according to what O'Ban told KING 5.

More than 50 percent of voters approved the $50 billion Sound Transit 3 package - which increases taxes, including car tab fees, to pay for light rail and bus expansion from Everett to Tacoma - in November. But now that the taxes are due, many residents inside the Sound Transit taxing district are feeling sick after seeing higher car tab fees.

In February, the Seattle Times reported that the state Department of Licensing is collecting car tabs fees for Sound Transit using a formula that doesn't calculate depreciation as quickly as consumer guides, like Kelley Blue Book. However, the formula has been in place since 1990, and has been publicly available on the Department of Licensing's website.

There's another bill in the state House, House Bill 2147, which would slow the increase of vehicle excise taxes. Changes to how ST3 collects revenue, however, might slow light rail expansion - and before ST3 passed, many were critical of the 20-plus year timeline. It can take Sound Transit up to 25 years to collect all the money it needs to build new transportation infrastructure.

O'Ban and Rossi's bill came out Wednesday, and a Sound Transit spokesperson told KING 5 that the agency is still reviewing the proposal.

Image via State Sen. Steve O'Ban