Governor Inslee should move to ease the financial burden of the COVID-19 lockdown by deferring the collection of car tab fees. With record numbers of unemployment claims being filed in Washington State during the pandemic, the need for tax relief that voters expressed when they approved Initiative 976 last fall is felt more acutely now than ever before.

The coronavirus pandemic and subsequent statewide stay at home order have induced astronomical levels of claims for unemployment benefits. Over 605,000 claims were filed between April 12^th and 18^th and, according to Washington’s Employment Security Department, nearly 1 million more weekly claims are expected to be filed starting April 26^th. As of April 23^rd, the state had already paid out over $1.4 billion in unemployment benefits.

Meanwhile, the fight between Washington taxpayers and state government over car tab fees remains ongoing. While I-976 – which was approved by a 53% majority of voters during last November’s general election – languishes in the courts, Washington continues to face the 19^th highest vehicle registration costs in the nation.

Initiative 976 reduces or eliminates a variety of vehicle weight fees imposed on Washington drivers, changing how Sound Transit values vehicles, ending Transportation Benefit Districts’ authority to impose a car tab tax, and repealing the 0.3% vehicle retail sales/use tax.

I-976 was a clarion call from voters for tax relief. With what seemed to be complete disregard for public accountability, Sound Transit responded to the initiative’s passage by raising property taxes on homeowners in the Sound Transit taxing district. Despite being declared mostly constitutional by the King County Superior Court after a slew of court challenges, I-976 is currently under injunction and slated for the State Supreme Court.

Waiving car tab fees during this state of emergency would both acknowledge the will of voters as it was so clearly expressed in their vote for $30 car tabs and provide the public meaningful tax relief during this financially stressful time.

During a press conference held on April 16^th, Governor Inslee was asked whether he had any plans to allow a “grace period” on payment of car tab fees, to which he replied, “Interesting question. I haven’t actually thought about that. I’ll give thought to that.”

A few days later, Senator Steve O’Ban of Tacoma sent a letter sent to the governor’s office urging him “to suspend the collection of vehicle licensing fees that exceed $30 until the coronavirus crises and its devastation on our economy end.” O’Ban wrote that “to continue to require out-of-work Washingtonians, and small business owners of non-essential activities, to pay a vehicle licensing fee that exceeds, in some areas of the state, $400-600, or more, is unacceptable.”

Moreover, suspending collection of car tab fees would follow the example of the counties that are deferring property tax due dates, as well as echo the governor’s previous action of waiving fees and penalties for business taxes during this emergency situation.

During this period of coronavirus emergency proclamations, we recommend waiving the enforcement for expired car tabs and deferring vehicle registration fees to provide much-needed economic relief. When or if the legislature reconvenes for a special session, they can address granting more permanent relief. By approving I-976, voters have already made clear that they want and need tax relief. With unprecedented unemployment levels and drastic income reductions across the state, Washingtonians are waiting to see that relief materialize with increasing urgency.