Washington’s Supreme Court takes up Initiative 976

The Washington Supreme Court heard oral arguments yesterday on I-976, the so-called “$30 car tab fee” initiative run by Tim Eyman. While voters had approved the initiative last November, implementation of I-976 has been stayed following a lawsuit heard in the King County Superior Court this spring. The Court largely upheld the initiative, striking down only a localized issue involving revenue which had been previously bonded against.

The far-reaching initiative reduces fees on car tabs, repeals all local Transportation Benefit Districts (TBD) across the state, and halts Sound Transit’s ability to collect Motor Vehicle Excise Tax (MVET), and requires the state to use Kelly Blue Book’s vehicle valuation schedules. If upheld, I-976 would reduce state and local tax collections by over $4.2 billion over six years—a significant impact to state transportation revenues

Tuesday’s oral arguments centered on the state law requiring that an initiative’s title must accurately convey all aspects of the initiative. The Appellants, which include the Port of Seattle, argued that I-976’s title is unconstitutional because it fails to include significant portions of the initiative, like the repeal of TBDs and so on. Appellants also argued the initiative exceeded the Single Subject Clause and forced the state to enter a contractual relationship with Kelly Blue Book by naming it specifically in the initiative, a violation of state law.

Acting in defense for the approved initiative, the state argued the initiative’s title, while general, did not violate state law—it is unreasonable to assert a title of any initiative could be inclusive of every specific impacted tax.

The Washington Supreme Court Justices focused their questions on an ambiguous phrase in the initiative which appears to exempt voter-approved changes; they also explored the severability of the initiative, or whether any portion(s) of the initiative could stand if others are found unconstitutional. While the court has not signaled how quickly they will rule on the initiative’s constitutionality, the WPPA will make sure to keep you updated on any impacts their eventual decision will have on your port.

You can watch the oral arguments on TVW: https://www.tvw.org/watch/?clientID=9375922947&eventID=2020061188