Voters would decide next year about a new tax on car tabs and/or sales tax boost

Funds would go to improve existing transportation infrastructure

Posted

According to the directions the Board of County Commissioners gave county staff, the county plans to hold an advisory vote on a new tax and vehicle tab in next year’s August primary election.

The county commissioners, acting as the board of the county’s transportation benefit district, held a meeting on Tuesday, August 20, to review their options for funding the district.

The county’s transportation benefit district was established in 2014 to improve the county’s existing transportation network, but the taxing district has yet to be funded.

County engineer Matt Unzelman said money generated from the taxing district could be used for projects listed in the county’s transportation plan and to leverage larger amounts of state and federal funds.

Jennifer Walker, the county’s public works director, clarified that the taxes will not be used for projects that increase traffic capacity but instead will focus on improving the county's existing infrastructure.

The director said the county could approve a new tax or car tab for the district as a board decision or through a successful ballot measure.

A board-approved sales tax would be capped at 0.1%, while a board-approved car tab could range from $20 to $50.

If the taxes were approved through a public vote, a sales tax could be 0.2% to 0.3%, while the car tab could be $50 to $100.

Below is a summary of the estimated yearly revenues from these funding options:

  • 1% sales tax (board-approved)- $1.57 to $1.74 million
  • 2% to 0.3% sales tax (voter-approved) - $3.13 to $5.21 million
  • $20 to $50 car tab (board-approved) - $1.24 to $3.10 million
  • $50 to $100 car tab (voter-approved) - $3.10 to $6.21 million

Commissioner Gary Edwards was the first to suggest the idea of bringing these funding options to an advisory vote saying that he was “not inclined to do a councilmatic vote.”

The result of an advisory vote is non-binding and merely indicates the opinion of voters on a proposed measure.

Edwards initially suggested a $20 car tab, even though the board could approve it without a public vote.

County staff confirmed they could pursue this direction. County Commissioner Wayne Fournier agreed that a successful advisory vote would be a good indicator of their passing the new fee as a board action.

Edwards later clarified that he is open to either a tab fee or a sales tax, so Fournier suggested a combination of a $20 car tab and a 0.05% sales tax.

The commissioners did not take any action during the meeting.

The transportation benefit district's next meeting will be next year. Commissioner Carolina Mejia directed county staff to identify how the funds will be used and to determine the costs of putting the matter to a vote.

If approved, the new sales tax or car tab would take effect starting in January 2026.

In her presentation to the county commissioners, Walker said that Olympia, Lacey, and Tumwater have their own transportation benefit districts that are already being funded. In total, there are 117 cities in the state with their own transportation benefit districts, most of which are funded only through a sales tax.

Four other counties in the state also have transportation benefit districts, but most of these districts have yet to begin collecting taxes.

Comments

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  • RedskinPatriot

    It amazes me how words are used to describe wealth confiscation (taxes)… Government does not make anything - they take from person A and give to person B. Therefore they do not have a revenue for goods and services. They take wealth from a persons labor - period!

    We saw the economy boom when taxes are cut (See John F. Kennedys speech about cutting taxes). It works - Do I have to cite Milton Friedman?

    Now, what the county could do is create an environment for the free markets to thrive. By cutting taxes and limiting their involvement in the market. This sets the stage for businesses to grow in Washington State which increases jobs and entices more people to move here and spend. Thus increasing the amount of “revenue” or wealth confiscation (as the slide should depict) to pay for roads, bridges, and other critical infrastructure.

    Another idea is to not fund the Federal gov’t as much as we do! The more money that remains in the state means the people’s money stays close to them.

    I’ve never understood why we send a dollar to D.C. only to lobby that dollar back to the state we live in? Let’s keep our government limited and entice the free markets to thrive in this beautiful state we live in!

    Thursday, August 22, 2024 Report this

  • bonaro

    I 100% agree with RedskinPatriot.

    Additionally, the voters spoke and passed $30 car tab limit years ago. This was realized for only a short time and since it has been eroded with nuisance fees to become 2x or 3x that cost in most cases. Yes, following this would be a financial hardship for the County but that is part of the point. Thurston County Government is filled with pork. If you run short of money for your pet projects try laying off a couple dozen Education and Outreach specialists. Personally, I dont need a paid County employee to help me figure out how to recycle, compost or can my vegies. Then gut the wastewater department. A department filled with people paid to watch it rain.

    You will not be getting one dime more from me. We have crossed the tipping point where the citation for expired tabs is cheaper than buying permission to drive my car...pound sand

    Friday, August 23, 2024 Report this

  • CrazyGranny

    ENOUGH IS ENOUGH! Our sales tax is already at 9.7% here in the Olympia/Lacey/Tumwater area and for a disabled senior citizen living on a minuscule fixed income, that's almost 1/10 of my income going out to sales taxes since almost everything is taxed any more. Even though food products aren't, the prices of those items have increased so much, it's almost impossible to have a decent meal now and then, much less each day. And yes, I can go without paper towels, but NOT toilet paper or dish soap of some kind and there goes another almost 10 cents on the dollar. WHEN DOES IT END?!? And as for raising the car tabs?!? Get a grip on reality! I have to save a little each month so that when my tabs come due, I can afford them as it is ($80 on a 1998 vehicle worth $300). And now you want to price me out of being able to own a vehicle?!? Are YOU willing to give me rides wherever I need to go when I can't afford the tabs on my car any longer?!? And don't give me that garbage about Dial-a-lift; you have to give one to two WEEK'S notice for a ride. Then you have to be ready AT LEAST an hour prior to your appointment. Once your appointment or grocery shopping trip is done, you then have to call them AGAIN for a return trip and IF you're lucky, you'll only have to wait STILL ANOTHER HOUR to get a ride home. How about if the idiots who are proposing these changes try to live on what I and a number of other seniors and disabled folks are trying to do and then see if you're still so gung-ho to propose these changes!!!!

    Friday, August 23, 2024 Report this

  • ChuckCross

    I 100% agree with the Redskin Patriot and the Crazy Granny. It seems the only accountability we have for expanding governmental growth is to VOTE THE INCUMBENTS OUT OF OFFICE. ALL of our governmental structures willy nilly spend and spend -- especially when deciding to correct social ills. IF the proposed governmental spending cannot be funded with local dollars, it makes no sense to think that securing federal dollars is the answer to our funding needs. If the County cannot get by on the funds currently approved by the voters, the expenditure(s) must be submitted to a vote of the people. Sign me off as another citizen living a fixed income.

    Friday, August 23, 2024 Report this

  • Madeline_Bishop

    Let's discuss where we get the money from to fund the services we demand? We all want good roads and 911 response. Anyone want to cut down on law enforcemetn? I don't think so. What would be the most equitable way to pay for these things?

    Friday, August 23, 2024 Report this

  • Snevets

    Thank you Madeline Bishop.

    Friday, August 23, 2024 Report this

  • JW

    Can't wait for the county to pass this tax and then in 5 years have to pay it back because they spent it illegally like their building on Pacific Avenue.

    Friday, August 23, 2024 Report this

  • FirstOtter

    I am sick and tired...yes, an old trope, but it's true ,I'm tired of the county constantly increasing the tab ccosts for my increasingly older vehicle. I own a 1999 pickup. I was charged $85 for my 2025 tabs. . The county has demonstrated that they DON'T go by the Kelly Blue book assessment of my truck's value. Trade in value of my truck...and it's in good shape, is about $2000.

    The county, though, I guess they're experts on vehicle condition, have decided it's worth what I paid for it. It's 25 years old!!

    STOP THIS. Stop shaking us down for our nickels and dimes. A vehicle tab should be no more than $20. PERIOD. I'm sick of their constantly dipping their fingers into my wallet, just a little more just a little more, we have to pay for What? Improving the EXISTING transportation district? That's gobbledygook. What does this mean? Putting little flower vases on the busses? A smiley face on the bus stop plexiglass? OR is it giving the commissioners a raise? What do they mean by 'district'? Is that a fence line, a property line? I have seen no expansion of public transportation to areas that are unincorporated. I do see hundreds of roundabouts being put in, especially in Roundabout I mean Tumwater. Is that what a 'district' is?

    This is bushwa. Letting 'the voter' decide as to how much more we pay for a stupid little sticker that the cops seldom,if ever, pay attention to is like telling a kid, you go and pick out the switch I'm whip you with.

    A vote is only fair if we get a third option: REDUCE the tab tax to no more than $20. For any age, condition or type of vehilcle. THAT I will vote for. We did it once, and the county ignored us. Time to vote them ALL out.

    Friday, August 23, 2024 Report this

  • 52237123abc

    No way is this a good idea. I live in the Bridlewood neighborhood in Tumwater. On any given day you will see 4-6 cars parked on Belmonte….a Tumwater city street… with tabs 1-3 years outdated. The city won’t ticket them.

    We’d have more money without raising the taxes of people who do pay if all tabs were kept current.

    Friday, August 23, 2024 Report this

  • MamaBear

    Excellent comments on why this is a bad idea! My question is why did folks vote to have MORE commissioners to pay. Some people love to pay taxes. What they should do is take all their extra money and pay it to the places these taxes are meant to support.

    Friday, August 23, 2024 Report this

  • Grateful

    This should be taken out of Intercity Transit’s funds, re-allocating a current tax, not added to our excessive tax burden.

    Our end of the Martin corridor has already been fighting the proposed roundabout and bus station at Dutterow/Meridian, which is a poor location for a roundabout and will be worse when the Nisqually bridge is under construction. For those not familiar, the “Mighty Improvements” for the Martin Corridor that Intercity Transit wants (dated May 18, 2022 on their website) includes: “driveway consolidation (access management)”, “roundabouts at Pacific, Lilly”, “bus pull-outs converted to in-lane stops” and “business access transit lanes between Pacific and Marvin” (right traffic lanes re-designated for bus-only use).

    This nonsense needs to stop.

    Saturday, August 24, 2024 Report this

  • Bonz9465

    Why keep punishing the people who comply and pay their car tabs? Every day I see numerous cars with expired tabs. Some for years of none payment. Collect that money instead of creating a new fees and taxes. More money will not make you better stewards of it!!

    Saturday, August 24, 2024 Report this

  • Cobbnaustic

    "A tax is a fine for doing well, a fine is a tax for doing wrong." ~ Mark Twain

    "What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin." ~ Mark Twain

    "The avoidance of taxes is the only intellectual pursuit that still carries any reward." ~ John Maynard Keynes

    "Collecting more taxes than is absolutely necessary is legalized robbery." ~ Calvin Coolidge

    "America is a land of taxation that was founded to avoid taxation." ~ Laurence J. Peter

    "A government that robs Peter to pay Paul can always depend on the support of Paul." ~ George Bernard Shaw

    Saturday, August 24, 2024 Report this

  • JnNwmn

    The City of Olympia already gets $40.00 per car added on the registration tab. Thanks to the go around on the ancient $30.00 per tab initiative that passed. Our legislators endorsed. And the City Council elbowed out of the way. This why there should be Impact Fees for new housing and new comers so they pay their fair share. Impact Fees are in the state constitution for cities to use !!!!!

    Saturday, August 24, 2024 Report this

  • HappyOlympian

    They should make these payments voluntary. I suspect no one will pay, but oddly enough the folks who refuse to do that will vote to increase taxes. I will certainly be voting no, I know better than to give bureaucrats money instead of having them make due.

    Monday, August 26, 2024 Report this