Update on the Local Option Motor Vehicle License Fee and I-695

An article in the December 9, 1999 edition of the Seattle P-I reports that the four counties (King, Snohomish, Pierce, and Douglas), which currently levy a $15 local option vehicle license fee under RCW 82.80.020, will continue to levy this fee in 2000.

This revenue is shared with cities in those counties. In Budget Suggestions for 2000, we said that the counties might lose their authority to collect such a fee if I-695 passed because RCW 82.80.020 identifies the vehicles on which the fee may be imposed as those vehicles licensed under RCW 46.16.060. We pointed out that statute would be repealed if I-695 passed.

The counties are arguing that RCW 82.80.020 incorporates the terms of RCW 46.16.060 that describe the vehicles subject to the fee. Since RCW 82.80.020 was not repealed, they say the vehicles subject to the fee are still described. In a November 18, 1999 letter from Narda Pierce, Solicitor General, Office of the Attorney General, to Fred Stephens, Director, Department of Licensing, the Solicitor General said that arguments could be made both for and against the counties' position. The courts will have to decide. Whether any fees collected will have to be returned by cities and counties if the counties lose a court challenge on this issue is unknown.

We have been told that Snohomish County plans to put its fee revenue into a reserve fund in case rebates have to be made.