Seattle council panel takes step to raise parking, car-tab taxes

A Seattle City Council committee voted Tuesday to move ahead with a new citywide taxing district and increased taxes.

The council says it must move quickly to raise commercial parking taxes and a car-tab fee in time to pay for a sea-wall replacement on the Seattle waterfront and other budget needs next year.

The full council will take a final vote Monday on:

• Raising the parking tax paid by commercial parking-lot operators from 10 percent to 12.5 percent; and

• Creating a Transportation Benefit District, a citywide taxing district overseen by the City Council. The new district would give the council authority to raise car tabs by $20 and to seek voter approval for higher property and sales taxes, as well as tolling on local roads.

Both items were approved Tuesday by the committee, with immediate plans to work toward raising car tabs by $20 starting next spring.

City residents pay between $40 and $60 annually for car tabs now.

During the meeting, Council President Richard Conlin described the current situation as a "large-scale crisis in transportation funding." Seattle faces several big, unfunded transportation expenses. The city's Department of Transportation is facing an $8 million shortfall next year and has underfunded bicycle and pedestrian master plans.

The city also needs to come up with $235 million for a sea-wall replacement, $57 million for its portion of the Mercer Street West project, and $122 million for waterfront improvements related to the Alaskan Way Viaduct replacement.

The city also agreed to make a $15 million contribution to a new South Park Bridge.

At Tuesday's meeting, Councilmember Tim Burgess expressed concern about the timing. He worried the council wasn't taking enough time to make a case to the public.

"In this particular economic time, if we increase fees like this, we need to be absolutely sure we can explain to the public why," he said.

Transportation advocates testified during a short public hearing in favor of the taxing district.

"The needs are great, and traditional revenue sources are drying up," said Bill LaBorde of the Transportation Choices Coalition.

The council discussed exempting the University of Washington from the parking-tax increase, but put off the decision for another day.

Emily Heffter: 206-464-8246 or eheffter@seattletimes.com