The Seattle City Council, organized as the Transportation Benefit District board, approved a $20 vehicle-license fee this morning to pay for preserving and maintaining city streets, enhancing safety and mobility for bicyclists and pedestrians, and improving mobility and safety for people with disabilities. The new fee, designed to help close an estimated $500 million backlog in transportation projects, would raise about $6.8 million a year. The city’s transportation department has suffered in recent years because of declining revenues from the gas tax and a shrinking general fund.
Seattle is the eighth city in the state (along with Burien, De Moines, Edmonds, Lake Forest Park, Olympia, Prosser, Shoreline and Snoqualmie) to adopt a $20 vehicle-license fee under a law passed in 2007. Under state law, cities can place an additional license fee of up to $20 license fee on a citywide ballot, bringing the total potential license fee to $40.
Council member Bruce Harrell said that although he supported the fee, he was concerned that it was “a very regressive tax. The owner of a $100,000 car pays the same as a person who owns a $2,000 car.”
However, Council member Sally Clark noted that the fee puts the burden of building infrastructure on the people who use that infrastructure. “If we want to really satisfy the hunger for transportation projects … this is the right kind of fee. It’s attached to the user [and] it goes back into the system in a way that hopefully is evident” to the people who will be paying it.
City council member Bagshaw expressed concern that the legislation didn’t specifically say the fee would fund freight mobility (in addition to drivers, cyclists, pedestrians, and people with disabilities). However, the council decided to put off adding specific new goals like freight mobility until they hash out the details of the plan later this year.
