The spirit of I-976 lives on and has resurfaced in a recently proposed bill from Sen. Keith Wagoner (R–Sedro-Woolley). HB 5970 aims to limit annual motor vehicle license fees to $30 and repeal state and local government authority to impose certain vehicle taxes and charges.

If passed, motor vehicle license fees for vehicles weighing 10,000 lbs. or less could not exceed $30 per year. Fees that currently exceed the proposed limit would be reduced to $30 beginning July 2022.

Registration fees for electric vehicles are currently $150, part of which is used to evaluate the feasibility of transitioning from a fuel tax system to a road usage charge system. The proposed legislation would reduce these fees to $30 and the revenues would no longer be used for this purpose.

The bill would repeal other charges related to vehicles, namely the motor vehicle weight fee, the local option motor vehicle excise tax, and vehicle fees imposed by transportation benefit districts. It also removes the retail sales tax and the sales and use tax on car rentals. To compensate for the reduced revenue from retail sales, the bill directs the state treasurer to transfer sufficient funds from the general fund to each of the accounts negatively impacted by the loss of retail sales in each fiscal year.

Finally, excise taxes on vehicles would be based on the Kelley Blue Book value, not the manufacturer’s base suggested retail price.

AWC is opposed to HB 5970 and has significant concerns about the bill. Repealing municipal authority to impose and collect tab fees under a TBD would severely impact city efforts to support transportation needs such as preservation and maintenance or expanded transit.