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SUBJECTS › TRANSPORTATION › State and Local Transportation Taxes
Updated 06-07

State and Local Transportation Taxes

Contents

Introduction

This web page lists and provides links and information about taxes to support local transportation projects and programs that can be levied by Washington cities and counties, as noted. Please note that the Transportation Resource Manual referred to on this page is the Washington State Joint Transportation Committee Transportation Resource Manual, last updated in January 2007.

State Taxes and Fees

The State Taxes and Fees ( 792 KB) section of the Transportation Resource Manual  - Lists almost all of Washington State's taxes and fees, the major source of revenue for State transportation purposes. After collection, these user taxes and fees go to the State Treasurer, who segregates them into statutory accounts Expenditures from these accounts are appropriated by the Legislature.

    Local Taxes

    The Local Taxes ( 85 KB) section of the Transportation Resource Manual - Summarizes transportation taxes authorized by the Legislature for local government use. Listed below are selectively chosen local option taxes.

    Border Area Motor Vehicle Fuel and Special Fuel Tax ( 85 KB) - Authorized by Ch 82.47 RCW is imposed by Sumas, Blaine, Nooksack, and the Point Roberts TBD

    City Street Utility Charge ( 85 KB) - Authorized by Section 82.80.040-.060 RCW  and was declared invalid in Covell v. Seattle, 127 Wn.2d 874 (1995)

    Commercial Parking Tax  ( 85 KB) - Authorized by  RCW 82.80.030 may be imposed by a county, a city or a district.  Jurisdictions that have imposed the tax include:

    Local Option Taxes for High Capacity Transportation ( 85 KB) -  Sections 81.104.140 - .170 RCW  provide dedicated funding sources of voter approved employer tax, special MVET, and special sales and use tax for transit agencies, regional transit authorities and regional transportation investment districts authorized to provide high capacity transportation services in:

    • Each county with a population of one million or more, and in each county with a population of from two hundred ten thousand to less than one million bordering a county with a population of one million or more that are authorized on January 1, 1991 - Regional transit authorities (RTA) formed in King, Pierce, and Snohomish counties;

    • Any county that has a population of one hundred seventy-five thousand or more and has an interstate highway within its borders, except for any county having a population of more than one million or a county that has a population more than four hundred thousand and is adjacent to a county with a population of more than one million. Transit agencies in counties adjoining state or international boundaries are authorized to participate in the regional high capacity transportation programs of an adjoining state or Canadian province - Eligible Counties are: Thurston, Clark, Kitsap, Spokane, and Yakima counties.

    Local Option Taxes for High Occupancy Vehicle (HOV) Systems  ( 85 KB)  -  RCW 81.100.030, 81.100.060  Authorizes voter authorized employer tax or MVET or surcharge on car rentals. King, Pierce, and Snohomish counties eligible

    Local Option Motor Vehicle and Special Fuel Tax for Counties ( 85 KB) - King, Pierce, and Snohomish counties eligible to impose - None have done so. 

    Local Option Taxes  for Regional Transportation Investment District  ( 85 KB) - None have imposed tax.

    Motor Vehicle License Fee ( 85 KB) - Repealed by Initiative 776, which in turn was subsequently invalidated by State Supreme Court.

    Property Tax Road Levy  ( 85 KB) - All 39 counties collect.

    Transportation Benefit Districts

    Transportation benefit districts (TBDs) ( 85 KB) ) in Transportation Resource Manual are quasi-municipal corporations with independent taxing authority, including the authority to impose property taxes and impact fees for transportation purposes.  RCW 36.73.020 governs formation by counties, RCW 35.21.225 governs formation by cities.  Prior to 2007 only two TBDs had been formed. One at Point Roberts in Whatcom County and the Liberty Lake TBD in Spokane County (Liberty Lake Ordinance No. 82 ( 206 KB), passed 2002).  The law was amended in the 2007 legislative session.   

    Federal Funding

    The Federal Funding ( 157 KB) section of the Transportation Resource Manual  summarizes various sources of Federal funding potentially available to cities and counties. The state receives apportionments and allocations of federal funds from a variety of Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) programs and also from the National Highway Traffic Safety Administration (NHTSA) and the Federal Airport and Airway Trust Fund. Also look at State and Federal Grants and Loans - MRSC

    Bonds

    The Bonds ( 52 KB) section of the Transportation Resource Manual  summarizes how state transportation bonds are authorized, sold, and repaid and a compilation of arguments for and against bond financing. Cities and counties may also sell bonds for transportation purposes; however, local bonds are not discussed in this report.

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