Council puts transportation tax on ballot in November

Seattle voters will decide the fate this fall of a $1.6 billion tax package for streets, bridges and sidewalks that has questionable support from the business community.

The City Council put the 20-year plan, including the largest proposed property-tax levy in city history, on the Nov. 7 ballot in a 6-3 vote Monday.

Council members and Mayor Greg Nickels said the package, which also includes new parking and employee taxes, was needed to address the city's transportation maintenance backlog. That backlog stood at $500 million in 2004 and would grow to $1 billion in 20 years if the city took no action, officials say.

"If we make a smaller package the gap would continue to grow and we'd be going down the same path of denial as previous city councils have," said Council President Nick Licata.

But the Greater Seattle Chamber of Commerce opposes the plan's size and the employee tax, which would charge Seattle firms $25 for every worker they employ. Businesses that gross less than $50,000 a year or employ fewer than three people would be exempt.

Chamber President Steve Leahy said "it's hard to envision" business leaders campaigning for the package.

"We were expecting a smaller package we could enthusiastically support," Leahy said, adding that he will talk with chamber board members in coming weeks about a strategy for the fall. Chamber leaders don't dispute the city's transportation needs, he said, but think the package puts an undue burden on business.

The levy would take effect in January if voters approve it, with the owner of a $400,000 home paying $155 in the first year, or 38 cents for every $1,000 of assessed value.

The levy could increase by up to 5 percent annually for the first six years. After that, state law limits levy increases to 1 percent a year.

About 70 percent of the proposed spending, which scales back Nickels' $1.8 billion plan, would go toward basic maintenance. The rest would be divided among bike and pedestrian safety, transit, landscaping, traffic signs and signals and major projects such as a reconfigured Mercer Street and a renovated King Street Station.

The new employee and parking taxes do not require voter approval. Unless council members change their minds, those taxes would start July 1, 2007.

The 10 percent tax on parking in commercial lots would be phased in over three years, starting at 5 percent, increasing to 7.5 percent in the second year and the full 10 percent by the third year.

Councilmen David Della, Tom Rasmussen and Peter Steinbrueck voted against the package, saying it was too large and 20 years was too long.

"Should it pass, I think voters will be disinclined to support other transportation measures," Steinbrueck added.

Bob Young: 206-464-2174 or byoung@seattletimes.com