Initiative 695 overview

This initiative would repeal the state motor vehicle excise tax, or MVET, on vehicles licensed in the State of Washington. It would also repeal the state travel trailer and camper excise tax and state clean air excise tax. The annual vehicle registration fee, or license tab fee, would be $30 for all vehicles -- up from $27.75 for first-time registrations and $23.50 for renewals.

The initiative would also require voter approval for new or increased taxes or fees proposed by state, county and local governments.

I-695 would reduce statewide motor vehicle taxes and fees by up to $1.1 billion in the 1999-2001 biennium and $1.7 billion in the 2001-2003 biennium. The initiative would reduce vehicle taxes and fees by an average of $142 per registered vehicle. The initiative would take effect Jan. 1, 2000.

Current MVET distributions

Under current law, the MVET would generate $1.5 billion in statewide revenues during the 1999-2001 biennium. These funds are designated for a number of uses, including the following:

• county public health districts/departments;
• local transit districts;
• municipal and county criminal justice accounts;
• ferry capital construction and operations accounts;
• motor vehicle fund;
• transportation fund; and,
• others.

I-695: Potential effects on Public Health services in Seattle & King County

Public Health - Seattle & King County receives approximately $10 million dollars yearly in MVET funds. These funds allow Public Health to obtain other "leveraged" funds (for example, reimbursement from Medicaid and federal Administrative Match funding).

If Initiative 695 passes, Public Health would lose these funds and, absent an alternative funding source, would likely have to reduce services.

Public Health programs* currently funded by MVET include:

• Food and Drinking Water Safety (for example, restaurant inspections.)
• Infectious Disease Control Programs (for example, prevention and control of HIV, hepatitis, pertussis, E. coli, tuberculosis, sexually transmitted diseases, and influenza)
• Health screening and education at childcare centers;
• Services to the elderly (including health screening and foot care);
• Women's health services (including comprehensive health exams, birth control, and cancer screening;
• Maternity care for low income women to promote healthy babies and families;
• The WIC Program, a food assistance program for 11,000 local women, infants, and children;
• Immunization Programs (for children and adults);
• Teen health services (including medical and mental health services for teens without access to other care);
• Language Interpretation for non-English speakers and refugee health services;
• Public outreach regarding health issues, outbreak information, telephone hotlines, and publications.

*Choices about which services will be reduced or eliminated, should Initiative 695 pass, have not been made and will be subject to public discussion.