Sound Transit is seeking an additional $15 billion in local taxing authority to fund the next round of slated transit projects once the currently approved projects are completed in 2023.
Should House Bill 1180 pass, voters in the area get to decide as early as 2016 whether they will accept whatever tax-collections combination Sound Transit ultimately proposes.
Briefly, these are the maximum cumulative taxes that could be collected, as outlined in the legislation:
• Sales tax of up to 0.5 percent in addition to the current 0.9 percent;
• Motor vehicle excise tax of up to 0.8 percent of a vehicle’s value in addition to the 0.3 percent motor vehicle excise tax Sound Transit is collecting to pay off outstanding bonds, even though Initiative 776 repealed the excise tax. (The motor vehicle excise tax is collected during car-tab renewal.)
• Property tax of up to $25 per every $100,000 of assessed value starting after Jan. 1, 2018.
I have asked for some assurance that, should this taxing authority be approved by voters, the collected tax dollars our subregion produces will be directly reinvested in our communities. Federal Way Link light rail extension has been proposed for several years and I would like to see our tax contributions go toward a project that specifically benefits our communities.
Sound Transit has not yet identified actual projects that would be funded. Instead, they have provided their long range plan as a potential guide for what is to come.
Should these tax measures make it to the ballot, here is some additional information provided to the Legislature by Sound Transit that will help taxpayers better understand the proposal.
The current average cost to a household paying for ongoing Sound Transit projects is $270 in sales tax and $57 for motor vehicle excise tax. Should House Bill 1180 pass and taxes be approved by voters, the average household would pay approximately $320 in sales tax, $208 for motor vehicle excise tax and $104 for property tax. Those figures are based on a 2009 study by the U.S. Department of Transportation, which found that each household in the U.S. has an average of 1.86 vehicles.
Pending passage, the current motor vehicle excise tax of 0.3 percent will continue to be collected, as well as the current sales tax of 0.9 percent. That means a 1.1 percent motor vehicle tax and 1.4 percent sales tax will be collected until February 2028.
House Bill 1180 passed out of the House Transportation Committee Feb. 2 and has been referred to the House Finance Committee.
I have provided this information simply to inform you of the potential costs. This is a decision that all taxpayers in the 30th District could face and I believe it is a personal decision that individuals and families will need to make based on their own financial situations.
I hope you find this information helpful and that you will contact my office with any questions or concerns. It’s an honor serving you.
Rep. Linda Kochmar, R-Federal Way, represents the 30th District, which includes Federal Way, Milton, Algona, Pacific and part of Auburn. Contact her via email at linda.kochmar@leg.wa.gov or toll-free at 800-562-6000.
