House moves ahead to exempt taxes on toll projects

Seaquist legislation will remove construction taxes from debt amount

February 15, 2008

OLYMPIA – Narrows Bridge toll payers might have over $40 million in bridge debt eliminated under legislation passed by the House late Friday.

The legislation, driven by Rep. Larry Seaquist, D-Gig Harbor, prevents large toll projects from having sales and use taxes added to the project debt.

“The fight to bring fairness to Narrows Bridge toll payers has spilled into state policy for future projects around the state,” Seaquist said.  “The state can’t burden communities with tolls, then pull in money on the same project with sales and use taxes.”

“I’m glad to see the House agree that double dipping these toll payers would be unfair state policy.”

Seaquist’s legislation, House Bill 3051, passed 94-0 and will apply only to projects where toll payers are covering over 50 percent of a project costing $1 billion or more.

This bill is part of an ongoing process to ensure the Narrows Bridge users get fair treatment as the state looks to use tolls elsewhere.

“Everyone acknowledges the state is moving towards tolls on more projects, but the fact remains that we’re first—we’re experiencing the growing pains,” Seaquist said.  “We expect fairness and I’ll continue fighting to get it.”

Since toll payers are currently paying down the bridge debt, and previous legislation put a hold on adding taxes to the debt account, Seaquist’s legislation will prevent the taxes from ever being added to the debt amount.  Other projects will have the taxes paid during construction, put straight into an account to pay down project debt.

Seaquist’s bill now goes to the Senate.