Slimmer street tax to be on Nov. 7 ballot

The Seattle City Council dramatically downsized a proposed $1.6 billion tax package for local streets and bridges, but it's not clear if the change is enough to overcome obstacles the measure faces on the Nov. 7 ballot.

Scrambling on deadline day to get a revised measure on the ballot, the council voted unanimously Friday to scale back a property-tax levy that provides most of the proposal's money. Instead of raising property taxes for 20 years, the revised levy would end after nine years.

Critics complained the initial levy — dubbed the "forever tax" — could be permanent because the proposed ballot language did not specify an end date.

While council members stressed they scaled back the proposal in response to critics, it would still be the largest levy-lid lift in city history, raising an additional $361 million over nine years, if approved by a majority of voters.

The owner of a $400,000 home would still pay $155 in added property taxes in the first year of the levy. But the levy would see smaller annual increases than under the initial plan, which would have raised $410 million over nine years and $1.1 billion in property taxes over 20 years.

As part of the overall package, which Mayor Greg Nickels supports, the council already has approved new taxes on employees and parking lots. Those new taxes do not require voter approval and will take effect next July. They will raise about $180 million over nine years, bringing the new total package — with the levy — to about $540 million.

The taxes are aimed at reducing the city's existing $500 million transportation-maintenance backlog.

"We heard loud and clear that voters were not comfortable with the [original] package," Councilwoman Jan Drago said.

But it's not clear if some key players in Seattle politics will support the revised package. With less than seven weeks until Election Day and four weeks until absentee ballots are mailed out, the campaign committee supporting the tax package hasn't raised any money, according to its most recent finance reports. Key business leaders opposed or were neutral to the initial proposal.

The Greater Seattle Chamber of Commerce, which had lobbied against the earlier package, is scheduled to decide its position Wednesday. The Downtown Seattle Association, another prominent business group, has not taken a stand.

Mukilteo anti-tax activist Tim Eyman is leading a campaign against the package, arguing that voter-approved levies shouldn't be used for essential services such as road maintenance. If the levy is approved, Eyman said, city officials "will see it as a green light to put other essential services on the ballot."

A spokesman for the pro-levy "Keep Seattle Moving" campaign acknowledged the challenge ahead.

"This, like many roads in Seattle, has a lot of potholes along the way," said Christian Sinderman. "But we believe it's a good package with a lot of built-in accountability, and voters will see the critical need and support it."

Some transit, bicycle and environmental advocates will stump for the tax package, Sinderman said, as will city officials who are allowed to campaign for ballot measures on their own time.

Councilmen David Della, Tom Rasmussen and Peter Steinbrueck tried to shrink the levy further, proposing a six-year tax increase that would cost $127 a year for a $400,000 home. But they were outvoted, and Rasmussen and Steinbrueck eventually supported the nine-year plan. Della was absent Friday because of a family emergency.

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