Strike everything after the enacting clause and insert the following:

NEW SECTION. Sec. 1. "The legislature recognizes the public comments received since the recent Sound Transit motor vehicle excise tax increase took effect, and acknowledges the resolution of the Sound Transit board to address concerns from citizens. The legislature finds that taxpayer accountability would be best served by providing a market value adjustment for the calculation of motor vehicle excise taxes. Further, the legislature finds that traffic congestion in the Puget Sound region results in lost productivity and air pollution. The legislature is committed to ensuring that all voter-approved Sound Transit projects are completed as outlined in the ballot measure to reduce congestion and preserve public health and welfare.

NEW SECTION. Sec. 2. A new section is added to chapter 46.01 RCW to read as follows:

If contracting with any regional transit authority for the collection of a motor vehicle excise tax authorized in RCW 81.104.160(1), the department shall work with the authority on the administration of a market value adjustment program as identified in section 3 of this act.

NEW SECTION. Sec. 3. A new section is added to chapter 81.112 RCW to read as follows:

A regional transit authority that includes a county with a population of more than one million five hundred thousand may establish a market value adjustment program to be implemented by December 31, 2017. The program must:

(1) Provide a credit against the motor vehicle excise tax imposed by a regional transit authority in an amount equal to the difference between the motor vehicle excise tax due calculated using the vehicle valuation schedule in RCW 82.44.035 and the motor vehicle excise tax due calculated using the vehicle valuation schedule in chapter 82.44 RCW as it existed on January 1, 1996. The credit applies only to the motor vehicle excise tax authorized in RCW 81.104.160(1);

(2) Ensure that the amount of the motor vehicle excise tax credit identified in subsection (1) of this section is supported from any nonbonded regional transit authority revenues;

(3) Not be applied if it would result in an amount that exceeds the amount determined by the vehicle valuation method identified in RCW 81.104.160(1); and

(4) Be retroactive and apply to all motor vehicle excise tax statements that have already been issued or paid that include charges for the motor vehicle excise tax authorized in RCW 81.104.160(1).

Sec. 4. RCW 82.44.135 and 2006 c 318 s 9 are each amended to read as follows:

(1) Except as provided otherwise in this section, before a local government subject to this chapter may impose a motor vehicle excise tax, the local government must contract with the department for the collection of the tax. The department may charge a reasonable amount, not to exceed one percent of tax collections, for the administration and collection of the tax.

(2) A regional transit authority may contract with the department for collection of a motor vehicle tax only if a regional transit authority has implemented a market value adjustment program as identified in section 3 of this act.

(3) Any contract entered into under this section must provide that the department will receive amounts sufficient to fully cover the costs applicable to the tax collection process, including (a) customer service-related costs, (b) information technology-related costs, (c) public announcement and education costs, and (d) any liability or other related risk assessment costs. The contract must also provide that any unforeseen future administrative costs will be borne by the regional transit authority.

NEW SECTION. Sec. 5. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."