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Washington State's 2019 Ballot Measure: Initiative

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Washington State's 2019 Ballot Measure: Initiative WASHINGTON STATE’S 2019 BALLOT MEASURE: INITIATIVE 976 A case study by the American Road and Transportation Builder’s Transportation Investment Advocacy Center™. TIAC staff researches and prepares detailed case studies on recent successful, and unsuccessful, state and local legislative and ballot initiative campaigns aimed at increasing transportation infrastructure investment. Each study examines the politics, issues, media, and key players involved in the effort. Report Contact Information: Quintin McClellan Research Specialist [email protected] 202.683.1016 ©2020 by the American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopy, recording, or otherwise, without prior written permission of ARTBA. About the Transportation Investment Advocacy Center The Transportation Investment Advocacy Center ™ (TIAC) is a first-of-its kind, dynamic education program and Internet-based information resource designed to help private citizens, legislators, organizations and businesses successfully grow transportation investment at the state and local levels through the legislative and ballot initiative processes. The TIAC website, www.transportationinvestment.org, helps transportation investment advocates to mount successful campaigns. It exists to put in one place—and promote the sharing of—strategies… sample political and communications tools… legislative and ballot initiative language… and information on where to obtain professional campaign advice, research and help. TIAC staff produces regular research reports and analyses, hosts an annual workshop in Washington, D.C., and holds ongoing webinars for transportation investment advocates featuring case studies, best practices, and the latest in political and media strategies. State and local chamber of commerce executives, state legislators, state and local transportation officials, “Better Roads & Transportation” group members, industry and labor executives, and leaders of state and local chapters of national organizations who have an interest in transportation development programs are welcomed to participate. The Center’s program of work is also guided by a Transportation Investment Advocates Council, a national network of business professionals and public officials who share a common interest in building support for transportation infrastructure investments in their state or local community— roads, bridges, public transit, pedestrian walkways and cycling paths, airports, waterways, ports and rail facilities. TIAC is a project of the American Road and Transportation Builders Association’s “Transportation Makes America Work!”™ and supported through voluntary contributions and sponsorships. To become a sponsor or to make a contribution, contact TIAC Director Carolyn Kramer. Also contact Ms. Kramer or Mr. McClellan if you have questions or comments about any reports or case studies published through TIAC or would like more information on the program and the Council. ©2020 by the American Road & Transportation Builders Association (ARTBA). All rights reserved. Page | 1 No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopy, recording, or otherwise, without prior written permission of ARTBA. INTRODUCTION TITLE OF LEGISLATION Initiative Measure No. 976 concerns motor vehicle taxes and fees. RESULT Washington State Initiative 976 was approved at the ballot on November 5, 2019. Washington Initiative 976 (2019)1 Yes Votes No Votes 1,055,749 936,751 52.99% 47.01% OFFICIAL BALLOT LANGUAGE “This measure would repeal, reduce, or remove authority to impose certain vehicle taxes and fees; limit annual motor-vehicle-license fees to $30, except voter-approved charges; and base vehicle taxes on Kelley Blue Book value. Should this measure be enacted into law? Yes [ ] No [ ]”2 PURPOSE OF LEGISLATION Washington Initiative 976 (I-976) was on the Nov. 5, 2019 ballot in Washington as an Initiative to the Legislature, a type of indirect initiated state statute.3 Frequently referred to as the $30 Tabs Initiative, the measure was set to take effect on Dec. 5, 2019, but has been delayed due legal challenges, which have largely been resolved. I-976 is primarily designed to: • Repeal or remove the authority to impose certain vehicle taxes and fees. • Limit state and local license fees to $30 for motor vehicles weighing 10,000 pounds or less regardless of make, model, year, or value. Additional charges must be approved by voters after the measure's effective date. • Base new vehicle taxes and fees on the Kelley Blue Book value of a car rather than 85% of the manufacturer's base suggested retail price. • Require regional transit authorities to retire bonds early where allowed. • Reduce or repeal taxes pledged to bonds depending on whether bonds are retired by 2020.4 As a consequence, I-976 is designed to repeal the following items: • The $150 fee on electric vehicles.5 • The vehicle weight fee for motor home vehicles. ©2020 by the American Road & Transportation Builders Association (ARTBA). All rights reserved. Page | 2 No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopy, recording, or otherwise, without prior written permission of ARTBA. • Local Transportation Benefit District (TBD) fees. This removes the ability of independent taxing authorities (transportation benefit districts) to impose annual vehicle fees collected by the Department of Licensing. • The authorization for local transportation authorities to impose local-option motor vehicle excise taxes to fund passenger-only ferry services. • A tax of 0.3 percent of the selling price on each retail sale of a vehicle in Washington.6 As a result of these policies, I-976 will cause significant cuts to road and highway infrastructure, regional transit, and road maintenance. ©2020 by the American Road & Transportation Builders Association (ARTBA). All rights reserved. Page | 3 No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopy, recording, or otherwise, without prior written permission of ARTBA. TABLE OF CONTENTS Introduction ................................................................................................................................................................... 2 Title of Legislation ...................................................................................................................................................... 2 Result .......................................................................................................................................................................... 2 Official ballot language .............................................................................................................................................. 2 Purpose of Legislation ................................................................................................................................................ 2 Table of Contents .......................................................................................................................................................... 4 Context and Background ............................................................................................................................................... 6 Previous Attempts ...................................................................................................................................................... 6 Tax Rates Prior to I-976 .............................................................................................................................................. 7 Revenue and Allocation Prior to I-976 ....................................................................................................................... 8 Supporting and Opposing Campaigns......................................................................................................................... 10 Supporting Campaign ............................................................................................................................................... 10 Opposing Campaign ................................................................................................................................................. 12 Aftermath of I-976 ....................................................................................................................................................... 15 Financial Impact and Potential Revenue Losses ...................................................................................................... 15 I-976 Impacts on Revenue and Allocation ............................................................................................................... 18 Impact on Local Governments and Transportation Benefit Districts ...................................................................... 20 Impact on Local Government and Sound Transit .................................................................................................... 20 Lawsuit ..................................................................................................................................................................... 21 Analysis – Why the Opposing Campaign Failed ......................................................................................................... 23 Broad Coaltions and
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