Hearing tonight for $20 license tab fee

ROYAL CITY - The Royal City Council is considering adding $20 to license tab fees for every motor vehicle registered within the city.

There will be a public hearing on the matter at 7 p.m. tonight, Tuesday, Feb. 7, at city hall. The regular city council meeting will follow.

"It appears that we may have a good amount of people at the meeting," Mayor Mike Stark said. "So it will be interesting."

The funds raised by the fee increase would be dedicated to the maintenance of city streets, Stark said. It is estimated the increase would raise about $16,800 per year.

According to Stark, the council can form a Transportation Benefit District (TBD) and add $20 to tab fees without a public vote. But a public hearing is required.

According to Stark, city street funds started to dwindle after Washington voters passed a law limiting tab fees to $30 a few years ago. Voters did away with the excise tax that for some vehicles was more than $500.

"A lot of that money used to come to the cities," Stark said.

After pleas for help from the cities, Stark said, the legislature approved the formation of TBDs by local entities.

In addition to forming a TBD without a public vote, the council can add $20 to tab fees. However, with a public vote, it can add as much as $100.

If the council forms a TBD and approves the $20 increase on license tabs, it will mean $8,400, estimated, to the city the first year. It would raise $16,800, estimated, each year after that.

While $16,800 is not a lot of money, Stark said: "You'd be surprised what it can do." He noted it could be used as matching funds to attract state or federal grants intended for street work.

"A lot of times small cities have a tough time coming up with matching funds," he said.