$54 billion is a lot of money. No matter how it is raised, it’s a lot. Local governments would pale at being asked to raise that much money, but that’s what Sound Transit 3 (or ST3 for short) did last fall. Spanning three counties and 16 cities, the plan will bring 116 miles of light rail to the Puget Sound area over the next 30 years.
So why should a reader at the Dailykos care about this? As we move further into the Trump years, many local governments are taking the initiative and passing progressive legislation. Sanctuary laws, non-discrimination ordinances, and many others are all worthy causes. Popular Initiatives, or referendums, are also used to legalize marijuana, raise the minimum wage, attempt to establish universal healthcare, and many other worthy causes. But too many times, in the heat of passing progressive proposals, do we ignore the less ‘sexy’ items. Mass transportation being one of them.
While mass transportation is a progressive goal for many reasons (Environmentally more friendly, easily accessed by the poor, improves congestion if planned correctly), the methods by which the money raised for such an effort is not.
Sound Transit is a inter-county transportation board that is responsible for mass transit efforts in three counties in Washington State; King, Pierce, and Snohomish. Its appointed Board of Directors is composed of ten members for King County, three members for Snohomish, four for Pierce, and the State Transportation Department Secretary.
Now, ST3 was and is an ambitious proposal with a hefty price tag; $54 billion. How was the money raised? Property taxes and a hike in price of the tags necessary to drive a vehicle in Washington State. Now most progressives will read that and go, “What’s the problem?”
The problem is that the proposal delivered results for the richer parts of the Puget Sound but stiffed the poorer regions, all while keeping the taxes the same. The result: One line for Pierce that will come in 2032 or thereabouts.
The tax remains the same.
“An annual tax of 0.8% of the assessed value of autos, 0.5% on taxable purchases, and 0.025% of the assessed value of real estate. The last amounts to $100 a year on a $400,000 house.”
-credit Martin H. Duke
This is problematic because taxes hit property owners in low income areas the hardest. While $100 a year doesn’t seem that much with the gigantic rise in property values in the Seattle area, it is a lot for the less well off in the surrounding areas.
For example, in Pierce County a house with a value of $215,000 will have a local property tax now of $2,660. That’s roughly $221 dollars a month. This may seem problematic. Many property owners are wealthy and I’d argue in places like Seattle or San Francisco they can take the hit. But in the places taking in people who have been priced out of those cities it can be the difference between purchasing a home or staying as a renter. The auto tax is even more impacting on lower income households in the surrounding counties as they won’t see light rail until 2030 or later.
Maybe the benefit outweighs the harm. Mass transit is a worthy goal that would help not just people in Washington State, but other parts of the country as well. Progressive goals should be championed, but we should also look at the price tag and who it collects against. Increases in property taxes, auto tags, and sales tax can be useful, but serve as a detriment to progressive goals when they harm the less fortunate.
What is clear, is that ST3 passed and the money will be raised. Hopefully, the benefits of mass transportation will be a boon in the region. But at least for me, the way it happened seemed to be a regressive tax that will hurt lower income families and drivers in areas without mass transportation.