
Yesterday, the Washington State Supreme Court agreed to hear a challenge by King County and others to I-976, the initiative approved by statewide voters last November to remove car tabs. Yesterday’s decision fast-forwards the case so it moves directly from King County Superior Court to the Supreme Court without a transfer to the Court of Appeals. The accelerated review means a decision is likely sometime this summer.
For Sound Transit, the outcome may take longer to play out. Sound Transit asserts it may continue collecting the MVET whatever the outcome of this case. If the initiative is upheld in this case, it probably means another round of litigation to sort out the unique Sound Transit issues.
To date, the initiative has not taken effect. An injunction granted in November remains in force and is now extended until the Supreme Court decides the case. Collections of the motor vehicle excise tax have continued although those may have to be refunded if the initiative is upheld.
In a February decision, King County Superior Court mostly upheld the initiative. While the Supreme Court may see the issues differently, it suggests I-976 is more likely than not to be found constitutional. Immediate impacts would include a reduction of funding for the state’s multimodal fund by 85%. The Seattle Transportation Benefit District would see about half of its revenues disappear, though those taxes were scheduled to expire at the end of this year anyway and a replacement with a higher sales tax levy seems likely. The STBD’s reserves could cover most of the cost of refunding vehicle license fees for 2020 if required, but it would start 2021 in a cash-poor position even if local voters approve new STBD taxes later this year.
Sound Transit’s expansion plans are obviously threatened by I-976, particularly now that the effects are magnified by an impending recession. A deep recession and I-976 together would exceed any margin of error in the ST3 financial plan several times over. Projects not already in construction would be cancelled or suspended into the far future.
Continue reading “I-976 moves to the Supreme Court”