This measure would reduce funding for state and local transportation projects by repealing, reducing, or removing state and local authority to impose certain vehicle taxes and fees. The measure would limit annual state and local license fees for motor vehicles weighing 10,000 pounds or less to $30, unless the fee is approved by voters. License fees, such as the motor vehicle weight fee and transportation benefit district fees, would be eliminated. The electric vehicle license fee would be lowered to $30. The transportation electrification fee would remain the same. The license fee for snowmobiles and commercial trailers would be lowered to $30. Other fees, such as service and filing fees, would remain the same. The measure would also eliminate the state motor vehicle sales/lease tax and eliminate authority to impose a local motor vehicle excise tax that supports passenger-only ferries.

Any regional transit authority, such as Sound Transit, that has issued bonds financed by a motor vehicle excise tax would be required to defease, refinance, or retire the bonds early, if the bond contracts allow such action. Once the bonds have been defeased, refinanced, or retired, the authority to impose the MVET and the additional sales and use tax on rental cars would be repealed automatically. If the regional transit authority is not able to completely defease, refinance, or retire the bonds by March 31, 2020, any existing voter-approved MVETs would remain unchanged, and the maximum rate of future voter-approved MVETs would be reduced from 0.8% to 0.2%.

The measure would also require that any future vehicle taxes, including voter-approved MVETs, be determined by using a vehicle’s base model Kelley Blue Book value. The base value would not include any applicable federal excise taxes, state and local sales and use taxes, transportation or shipping costs, and preparatory and delivery costs. The measure would require the Department of Licensing to use a vehicle’s base model Kelley Blue Book value for any appeal of the valuation of the vehicle.