I-976 would limit annual state and local vehicle license fees to $30, revoke the authority for transportation benefit districts to impose vehicle fees, repeal the state motor vehicle sales tax, revoke Sound Transit’s authority to impose a motor vehicle excise tax (if possible to do so under the terms of its bonds), and specify that any motor vehicle excise tax be calculated based on the vehicle’s Kelley Blue Book value.

The Office of Financial Management estimates that, over six years, I-976 would reduce state revenues by $1.923 billion and local revenues by $2.317 billion. In 2019–21 alone, state revenues would be reduced by $478 million. Much of the state revenue reduction would accrue to the multimodal account, which funds projects including public transportation, rail, and cycling. There would also be significant impacts to the motor vehicle account and other accounts that pay for road projects and repairs. Sound Transit’s revenues would decrease by $328 million a year, and local transportation benefit district revenues would decline by $58 million a year.

Providing for the transportation of people and goods is a vital role of government. The significant funding reductions that would result from I-976, at both the state and local levels, would require lawmakers to rewrite transportation budgets—putting many projects and programs at risk.

Read the report here.