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Transportation Benefit District approves agreement with state to collect $20 car fee

Bainbridge Island officials have taken the next step toward an island-wide $20 car tab fee.

At the last meeting of the Bainbridge Island Transportation Benefit District, the district board unanimously approved an interlocal agreement with the state Department of Licensing. The contract will allow the department to collect the $20 fee, then pass along most of the revenues to Bainbridge Island.

The new fees will be used for road projects on the island.

Under the terms of the interlocal agreement, which was approved by the transportation district board on March 13, the Department of Licensing will take 1 percent of the car tab fees as payment for collecting the taxes.

Bainbridge officials estimate that the city will begin receiving funds from the fee around August or September. The money will be transferred to the district on a monthly basis.

The Bainbridge Island Transportation Benefit District approved the $20 car fee in January.

It is estimated that the fee could raise more than $330,000 annually for island road maintenance and preservation.

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