Judge Approves Agreement On I-776 Refunds
King County Superior Court Judge Mary Yu also ruled there is no legal authority to order the state to pay interest.
"It is this court's conclusion that awarding interest, then imposing those costs on individual citizens ... is not legally sound and in fact would deter such individuals and organizations ... from challenging laws or the government," Yu said.
About 1.4 million people will receive $15 vehicle licensing fee refunds, and roughly 912,000 light truck owners will receive refunds for gross vehicle weight fees.
The state expects to send out payments within 90 days.
Initiative sponsor Tim Eyman said he's glad taxpayers are getting their money back, but said it's unfair the government didn't have to pay a penalty for the delay.
"There's no way the citizens of this state could confiscate $38 million they weren't entitled to and not have to pay some kind of penalty," Eyman said after the judge announced her decision.
Eyman's lawyers, Jim Klauser and Bob Rowley, argued that motorists deserved refunds plus 12 percent interest, which the lawyers said is the maximum allowed under state law.
Linda Moran, a senior assistant attorney general, countered the state has no legal authority to add interest to the refunds.
She said she was thrilled Yu ruled in the state's favor.
"It allows the state and counties to get going on the refund process, which has been our mutual goal since the state Supreme Court ruling," Moran said.
Washington voters approved I-776 in 2002 as a way to guarantee everyone in the state $30 car tabs. It eliminated a $15 road improvement fee in King, Pierce, Snohomish and Douglas counties, and was written to kill the Sound Transit tax collected in parts of King, Snohomish and Pierce counties.
Opponents, including King and Pierce counties, challenged the measure's constitutionality in court. A judge allowed King and Pierce counties to continue charging the $15 road-improvement fee. Snohomish and Douglas counties decided not to fight the initiative and stopped collecting the fee.
Last October, the state Supreme Court upheld I-776 and ordered that the extra fees collected from King and Pierce motorists be refunded.
The high court did not say whether Sound Transit could continue to levy a 0.3 percent motor vehicle tax to help provide commuter trains, express buses and light rail in the central Puget Sound region. That issue will be the subject of a trial scheduled for December in King County Superior Court.
Eyman's attorneys said they will wait until the rest of the case is heard before deciding whether to appeal Wednesday's ruling.
"This might be an appealable issue," Klauser said, "but we're not going to appeal it now."