Professional Documents
Culture Documents
(Dollars in Millions)
TOTAL STATE REVENUE IMPACTS ($478.1) ($680.5) ($764.0) ($790.9) ($817.5) ($3,531.0)
Local Government Revenue Impacts 2019-21 2021-23 2023-25 2025-27 2027-29 10 Years
Sound Transit**
- Sceanrios include: (1) MVET Is Eliminated If Bonds Are Paid Off by
March 31, 2020; (2) the .8% MVET Goes to .2% On April 1, 2020 If Bonds 0 - ($656) 0 - ($656) 0 - ($656) 0 - ($656) 0 - ($656) Unknown
Are Not Paid Off; (3) Potential Impacts From Converting to Kelley Blue
Book for Vehicle Valuation
Transportation Benefit District (TBD) Vehicle Fees***
- $20 - $100 Fee Eliminated ($116.4) ($116.4) ($116.4) ($116.4) ($116.4) ($581.9)
Notes
* Information in this document is based on the Office of Financial Management (OFM) fiscal impactment statement updated in Sept. 2019. Please see their document for detailed discussion of the assumptions used in the
calculations. Some of the major assumptions include: (1) assuming a Dec. 5th, 2019 effective date for most of the provisions; (2) utilizing the June 2019 revenue forecast estimates; and (3) using local revenues based on fiscal year
2018 actuals without any forecast adjustment. Beginning in November 2019, the revenue impacts of I-976 will be updated quarterly as part of the transportation revenue forecast process. In addition to the revenue impact, the
OFM information discusses approximately $3 million in expenditures related to the implementation of the initiative in the 2019-21 biennium.
** The OFM fiscal impact statement discusses a potential impact of $328 million per year in reduced revenues representing the entire FY 2018 MVET collections. The OFM information expresses uncertainty regarding the ability of
Sound Transit to pay off the bonds and therefore the impact on the contingent effective date provisions.
*** Assumes both the councilmatic and voter approved capability of TBDs to impose local vehicle fees is eliminated . The ability of TBDs to impose a local option sales and use tax is not impacted by the initiative.
11/8/2019 Prepared by Senate Committee Service Staff
Estimated Revenue Impacts of Initiative 976
(Dollars in Millions)
65.8%
60%
Percentage Reduction in Biennial Revenues
40%
$0.7 million
reduction
compared to
$4.7 million in
revenues $73.4 million $25.6 million
20% reduction reduction $13.2 million
compared to compared to $0.7 million $6 million
14.6% reduction
reduction
$0.7 million $1.6 million
$1.3 billion in $465.9 million compared to reduction reduction
compared to reduction
revenues in revenues $640.7 million compared to compared to
$40.7 million compared to
in revenues $432.7 million $208.1 million
in revenues $484.8 million
5.6% 5.5% in revenues in revenues in revenues
2.1% 1.8% 1.4% 0.4% 0.3%
0%
Multimodal Snowmobile Motor Vehicle WSP Highway Transportation Rural Arterial Nickel Account Transportation Puget Sound
Transportation Account Account Account Partnership Trust Account Improvement Ferry
Account Account Account Operations
Account
* Information reflects the 2019-21 biennium revenue reductions from the OFM fiscal impact statement regarding I-976 compared to projected biennial revenues for each
account based on the June 2019 revenue forecast with the exception of the Snowmobile Account which is based on a trend projection based on recent revenue
collections.
Projected Revenue Impacts By Fund of Initiative 976
$526.0 million for the 2021-23 Biennium
reduction
compared to
$619.9 million
in revenues
84.8%
80%
Percentage Reduction in Biennial Revenues
60%