Lawmakers could not come to a compromise before the end of session, and any efforts to address rising car tab fees associated with the Sound Transit 3 Initiative will have to wait until future legislative sessions.

Voters passed the ST3 ballot initiative in 2016 to complete major mass transit extensions every few years over a 25-year period in the Puget Sound region. After passage, controversy arose among the public and legislators over the formula used to calculate what a car is worth, and how much the owner should therefore be taxed. The valuation schedule was taken from legislation passed years earlier that values a car on the tax base of the manufacturer's base suggested retail price when the vehicle is first offered for sale, multiplied by a depreciation schedule.

This valuation schedule has frustrated many, as it does not reflect the Kelly Blue Book price of a vehicle. Many argue it instead inflates the value of the car, thus driving up car tab fees. Legislators have introduced several bills over the past two years to address this perceived inflation.

This year dueling ST3 bills were considered by the House and Senate, but lawmakers failed to act on either before the end of the 60-day session. SB 5955 and HB 2201, Sen. Patty Kuderer (D-Bellevue) and Rep. Mike Pellicciotti (D-Federal Way), sought to require Sound Transit to offer a credit to drivers whose car tab fees were higher under the old valuation schedule, and not based upon the Kelly Blue Book valuation. This credit would leave Sound Transit with a gap in funding for ST3 projects. As a result, the House and Senate offered differing solutions on how to backfill the gap. The separate chambers could not come to agreement on the backfill, resulting in no change to current law.

AWC did not take a position on either bill, but was concerned about what a buy-down might mean for other transportation projects and agencies moving forward. ST3 is a multi-billion-dollar transportation package and buy-downs will prove costly. AWC was concerned that large, new funding responsibilities could have an adverse impact on Connecting Washington projects or other transportation agencies.