SENATE BILL REPORT

SB 5646

BYSenators Vognild, Bluechel, Murray, Bailey, Talmadge, Williams, Warnke, Niemi and Conner

Providing funds for mass rail transit.

Senate Committee on Transportation

Senate Hearing Date(s):February 15, 1989

Senate Staff:Gene Baxstrom (786-7303)

AS OF FEBRUARY 15, 1989

BACKGROUND:

Revenues from the current 18 cent per gallon motor vehicle fuel tax are distributed among cities, counties and the state for road purposes.  The state uses of motor vehicle fuel tax revenues include funding of the urban arterial program, the rural arterial program, state highway construction and maintenance and the state ferry system.  The Eighteenth Amendment to the State Constitution restricts the use of state taxes on the distribution, sale or use of motor vehicle fuel for highway purposes.

There has been significant interest and activity at both the local and state level regarding the need for developing a mass rail transit system in the major metropolitan areas of the state.  Local transit agencies currently have the authority to develop rail transit systems; however, the level of local tax authority to develop such systems is not in place.  The rail development account was created by the Legislature in 1987 to assist with handling both mass rail transit systems and rail freight programs.  Currently, that account receives approximately $6 million per biennium from the reduction of approximately 4 percent of the motor vehicle excise tax moneys which otherwise would have been available to transit operating agencies in King, Pierce, Snohomish and Thurston Counties.

SUMMARY:

The motor vehicle fuel tax rate is increased by one-half cent per gallon with the revenues from that increase to be deposited in the mass rail transit account in the motor vehicle fund.

The mass rail transit account is created in the motor vehicle fund of the State Treasury.  Funds in that account are exclusively for development and construction of mass rail transit, and may not be used for planning purposes.

Mass rail transit is declared a public highway and to be part of the highway system as administered by the Department of Transportation.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested February 8, 1989