State and Local Transportation Taxes

Contents

• Introduction
• State Taxes and Fees
• Local Taxes
• Roads and Bridges Service District
• Federal Funding
• Bonds
• Related MRSC Pages
  • Public Transportation Funding
  • Transportation Benefit Districts

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  () section of the Transportation Resource Manual, 2009 edition  - 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 () section of the Transportation Resource Manual, 2009 Editon - Summarizes transportation taxes authorized by the Legislature for local government use. Listed below are the local option taxes noted in the manual.
• Border Area Motor Vehicle Fuel and Special Fuel Tax () - Authorized by Ch 82.47 RCW is imposed by Sumas, Blaine, Nooksack, and the Point Roberts TBD
• City Street Utility Charge () - Authorized by Section 82.80.040-.060 RCW  and was declared invalid by Covell v. Seattle, 127 Wn.2d 874 (1995)  New legislation is being introduced in the 2010 Legislative Session, see below:
  • HB 2618  - Washington State Legislature 2009-2010 - Concerning the regulation and preservation of urban streets through a local option street maintenance utility and allowing the imposition of a charge.
    
• Commercial Parking Tax  () - Authorized by  RCW 82.80.030 may be imposed by a county, a city or a district.  Jurisdictions that have imposed the tax include:
  • SeaTac Municipal Code Ch. 3.70 - Local Option Transportation Tax
  • Bainbridge Island Municipal Code Ch. 5.10 - Commercial Parking Tax
  • Bremerton Municipal Code Ch. 3.82 - Commercial Parking Tax
  • Mukilteo Municipal Code Ch. 5.10 - Commercial Parking Tax
  • Port Angeles Ordinance No. 3353 () - add a new Chapter 3 60 to provide commercial parking tax provisions, passed 12/08
  • Tukwila Municipal Code Ch. 3.48 ()- Commercial Parking Tax
• Local Option Taxes for High Capacity Transportation () -  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  () - 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 () - King, Pierce, and Snohomish counties eligible to impose - None have done so. 
• Local Option Taxes for Ferry Services—County Ferry Districts and PTBAs () - Chapter 36.54 and 36.57A RCW
  • King County Ferry District
• Local Option Taxes  for Regional Transportation Investment District  () - None have imposed tax.

• Local Option Taxes: Transportation Benefit Districts  () - Chapter 36.73 RCW
  • Transportation Benefit Districts - MRSC
• Local Option Motor Vehicle and Special Fuel Tax for Counties () - RCW 82.80.010 (Authorized in 1990)

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

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

• Transit Taxes  )  RCW 35.95.040,  RCW 82.14.045
• Public Transportation Funding  - MRSC page lists additional statutes, transit agencies, and funding sources

Roads and Bridges Service Districts

• Chapter 36.83 RCW - The legislative authority of a county may establish one or more service districts within the county for the purpose of providing and funding capital and maintenance costs for any bridge or road improvement or for providing and funding capital costs for any state highway improvement a county or a road district has the authority to provide.
• Pierce County Ordinance No. 96.84 established Pierce County Road Services District No. 1 (Ponderosa Estates), July 23, 1996 - To acquire, reconstruct, and maintain certin existing private roads within the boundaries of the district to current standards.

Federal Funding

The Federal Funding ( ) section of the Transportation Resource Manual, 2009 Editon  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 () section of the Transportation Resource Manual, 2009 Editon  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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