Seattle looking at transit tax options

City Council members met Tuesday to begin discussing Mayor Ed Murray's plan to raise revenue for protecting bus service. The mayor's proposal aims to generate about $45 million annually through a $60 vehicle license fee for Seattle residents and a 0.1 percent city sales tax. The money would pay for bus service that is slated to be cut due to a shortfall in King County Metro Transit’s budget.Councilmembers Nick Licata and Kshama Sawant have proposed eliminating the sales tax portion of the plan. As an alternative revenue source they have recommended an increase in the commercial parking tax from the current 12.5 percent to 17.5 percent, and a "head tax" on businesses of up $18 annually for each employee.“The sales tax is not a stable revenue source," Licata said during Tuesday's meeting, in which the council was sitting as the governing board of the special-purpose Seattle Transportation Benefit District. Licata and Sawant also say their proposal would lessen the financial burden of the bus revenue plan on low-income Seattleites.But Councilmember Tom Rasmussen, who chairs the benefit district, said that he has heard significant concerns from colleges, universities and hospitals about the parking tax. He specifically noted the University of Washington. Sawant didn't buy it. "They could easily absorb the commercial parking tax," she said, referring to UW. Mike O'Brien suggested that staffers look into whether it would be possible to eliminate the head tax from the Licata-Sawant proposal and make up the difference with a higher parking tax rate. Sawant said the idea did not seem viable. The benefit district will have until Aug. 5 to refer the proposal to voters for the fall election. —  B.L.