S-0016.3                   _______________________________________________

                                                     SENATE BILL 5053

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Senators A. Smith, Haugen, Loveland and McAuliffe

Read first time 01/11/93.  Referred to Committee on Government Operations.

Requiring the department of licensing to collect the local vessel excise tax on behalf of the counties.

          AN ACT Relating to the local vessel excise tax; and adding new sections to chapter 82.49 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.49 RCW to read as follows:

          The counties shall contract, at least six months prior to the effective date of a resolution or ordinance imposing a local excise tax on the privilege of using a vessel under RCW 82.49.070, the administration and collection to the state department of licensing, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department.  Any county with such resolution or ordinance in effect on the effective date of this act shall enter into such contract with the department within sixty days after the effective date of this act.  The remainder of any portion of any local vessel excise tax authorized by this chapter which is collected by the department of licensing shall be deposited by the department in the local vessel excise tax account hereby created in the state treasury.  Moneys in the local vessel excise tax account may be spent only for distribution to counties imposing a local vessel excise tax.  The director of licensing shall by rule set up administrative procedures for the collection of the local vessel excise tax in conjunction with collection of the state watercraft excise tax under RCW 82.49.030.  All earnings of investments of balances in the local vessel excise tax account shall be credited to the local vessel excise tax account and distributed to the counties imposing the local vessel excise tax monthly.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.49 RCW to read as follows:

          Monthly the state treasurer shall make distribution from the local vessel excises tax account to the counties the amount of tax collected on behalf of each county, less the deduction provided for in section 1 of this act.  The state treasurer shall make the distribution under this section without appropriation.

          In the event that any ordinance or resolution imposes a local vessel excise tax at a rate in excess of the applicable limits contained in this chapter, such ordinance or resolution shall not be considered void in toto, but only with respect to that portion of the rate which is in excess of such applicable limits.

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