Edgewood council votes in $30 car tabs. Move will cost city’s road preservation fund
Edgewood has waived all local fees on vehicle registration, meaning if the I-976 car tabs initiative wins in court, residents will pay a flat $30.
The City Council voted unanimously April 28 to pass the ordinance, which will be a hit to the city budget of $240,000. The funding helped cover the cost of preserving roads.
Gov. Jay Inslee ordered Feb. 29 that local governments and governing boards could only review legislation that responds to the coronavirus pandemic or is considered “necessary and routine matters.”
Mayor Daryl Eidinger said the city considers removal of car-tab fees essential governance. It wasn’t a political stance to move forward, Eidinger said, but rather a measure that was already on the agenda and didn’t make sense to push back.
“There is regular business to attend to,” Eidinger said. “Construction for a park coming up this year. Is that essential? Absolutely. We have to keep things moving and keep our economy moving.”
Plans to eliminate the fees have been discussed in Edgewood for months. The 2020 budget was created in October without including the car tab funds.
Eidinger said the voters made it clear that they do not want high car tabs.
“Will it hurt us? Sure. That’s a million dollars in over four years, but we will adjust,” he said. “We are entering into economic tough times, but so are the citizens. We can help by not costing them $20 and being frustrated over something they don’t like to pay anyway.”
The fees collected this year go into a separate account in case they have to be refunded to the public if the courts decide to invalidate I-976. Otherwise, the council will determine the use of the funds. Eidinger said.
Even if the courts rule in favor of Sound Transit and Seattle, Edgewood will not collect car tab fees, the mayor said.
Eidinger said the city will have to draw from its general fund to compensate for the lost revenue.
Orting previously eliminated city collection on car tabs.
In November, voters approved the statewide initiative to reduce car-tab fees. Vehicle registration can sometimes reach several hundred dollars. Pierce County supported the initiative in a landslide, with 66 percent approval of I-976.
The fees paid for Sound Transit construction across the Puget Sound region, and local jurisdictions tacked on fees for municipal transportation improvements. Once the measure was approved, the City of Seattle, King County and other jurisdictions sued the state and tax activist Tim Eyman.
The cities and local governments argued projects are underway with the expected funding from car tabs and that the ballot measure was unconstitutional and misleading.
A judge issued an initial ruling, questioning both sides. The ruling rejected the essential unconstitutional argument from King County and other plaintiffs.
Pierce County entered the lawsuit to defend the initiative in December. Deputy prosecutors are providing the state with support in arguing for the approved ballot measure, Prosecuting Attorney Mary Robnett told The News Tribune.
