Title: An act relating to the regional transportation investment district vehicle surcharge.

Brief Description: Modifying the imposition of the regional transportation investment district vehicle surcharge.

Sponsors: Senator Jacobsen.

Brief History:

Committee Activity: Transportation: 1/19/06, 1/23/06 [DP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass.Signed by Senators Haugen, Chair; Jacobsen, Vice Chair; Benson, Ranking Minority Member; Benton, Esser, Finkbeiner, Kastama, Mulliken, Spanel and Weinstein.

Staff: Kelly Simpson (786-7403)

Background: Under current law, counties with a population greater than 1.5 million persons
and adjoining counties with a population greater than 500,000 persons may create a Regional Transportation Investment District (RTID) for the purposes of planning and constructing regional transportation improvements. An RTID is granted several local voter-approved funding options to fund the improvements, including a sales and use tax, vehicle license fee, parking tax, motor vehicle excise tax (MVET), employer tax, and vehicle tolls. The MVET rate is capped at 0.3 percent of the value on vehicles registered to persons residing within the participating counties. Additionally, the MVET revenue may only be used for high occupancy vehicle lane purposes.

A City Transportation Authority (CTA) may be created in a city with a population greater than 300,000 for the purpose of performing a public monorail transportation function. In order to fund the public monorail transportation function, a CTA may impose an MVET not to exceed 2.5 percent on the value of every motor vehicle owned by a resident of the CTA area. A CTA currently exists within the City of Seattle and imposes an MVET of 1.4 percent.

Summary of Bill: An RTID is prohibited from imposing an MVET if a CTA is imposing an MVET to repay any remaining debt as part of a dissolution. Once a CTA has stopped imposing an MVET, an RTID may then impose an MVET.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: The Regional Transportation Investment District plan should go to the voters soon; however, relief should be provided to those currently paying an MVET for the monorail project that is closing down.

Testimony Against: None.

Who Testified: PRO: Senator Jacobsen, prime sponsor.

CON: No one.