Sen. Curtis King today began the Majority Coalition Caucus’ drive toward reforming the state’s transportation system by testifying in favor of his bill to return sales tax collected on transportation projects to the transportation budget, rather than diverting it to the general fund. According to King, Senate Bill 6102 – which received a public hearing in the Senate Ways and Means Committee – would actually implement something that most people believe is already happening.
“There’s a general assumption in Washington that taxes collected on transportation projects go back into the transportation budget, but that’s simply not always the case,” said King, R-Yakima, and co-chair of the Senate Transportation Committee. “My bill would help reaffirm the state’s commitment to transportation as well as help the public regain confidence that we’re being honest stewards of their tax dollars.”
In addition, King says the minimal amount of money being shifted from the state’s general fund would be more than offset by the increase in sales-tax revenue generated by economic development that comes with the completion of these significant transportation projects.
“It’s not the project itself that is economically significant, but the development and improvement stimulated by the completion of that project,” King clarified. “I think any taxpayer would be satisfied knowing that the state can expect at least an equal return of sales tax money to the general fund, to pay for things like education, social services and other vital state obligations.”
King added that the reform created by SB 6102 would have zero impact on the state’s general fund until 2018, and if a transportation package is enacted before that date the funds generated by economic revitalization would begin supplementing the general fund before a single tax dollar is sent back to the transportation budget.
If approved by the Senate Ways and Means Committee, SB 6102 would be sent to the Senate Rules Committee to await a vote by the full Senate.