CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 1119

 

 

 

 

                        57th Legislature

                2001 Regular Legislative Session

 

Passed by the House March 13, 2001

  Yeas 94   Nays 0

 

 

 

Speaker of the House of Representatives

     

 

 

Speaker of the House of Representatives

 

 

 

 

Passed by the Senate April 9, 2001

  Yeas 47   Nays 0

             CERTIFICATE

 

We, Timothy A. Martin and Cynthia Zehnder, Co-Chief Clerks of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 1119  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

                          Chief Clerk

 

 

 

                          Chief Clerk

President of the Senate

 

 

 

Approved Place Style On Codes above, and Style Off Codes below.              

                                FILED

                

 

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 1119

          _______________________________________________

 

             Passed Legislature - 2001 Regular Session

 

State of Washington      57th Legislature     2001 Regular Session

 

By House Committee on Finance (originally sponsored by Representatives Schoesler, Gombosky, Ahern and Schindler)

 

Read first time .  Referred to Committee on .

Modifying the taxation of new and used motor vehicle sales.


    AN ACT Relating to the business and occupation taxation of sales of new and used motor vehicles; adding new sections to chapter 82.04 RCW; prescribing penalties; providing an effective date; and declaring an emergency.

 

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

 

    NEW SECTION.  Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) This chapter does not apply to amounts received by a motor vehicle dealer licensed under chapter 46.70 RCW, or a dealer licensed by any other state, for the wholesale sale of used motor vehicles at auctions to licensed dealers.

    (2) This chapter does not apply to amounts derived by a new car dealer from wholesale sales of new motor vehicles of the same make to other new car dealers where the sales enable the dealers to adjust their inventory levels as long as the amount paid by the purchasing dealer does not exceed the amount paid by the selling dealer in the acquisition of the vehicle, however, the selling dealer may add reasonable expenses for the preparation of the vehicle for sale or transfer.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) In the payment of the tax imposed by this chapter on new motor vehicles sold to Washington customers that are delivered to the customer through courtesy dealers located in this state, the courtesy dealer is deemed to be the agent for the selling dealer in reporting and paying the tax imposed by this chapter, unless the selling dealer is already registered and reporting and remitting taxes under this chapter.  It is the duty of each courtesy dealer to pay the tax imposed by this chapter to the department when the courtesy dealer files its tax return.  Each courtesy dealer who acts as the agent for the selling dealer in reporting, paying, and remitting the tax imposed by this chapter must at the time of paying and remitting its own taxes imposed by this chapter pay the tax due on the transaction under this section.

    (2) The tax paid by the courtesy dealer on behalf of the selling dealer shall constitute a debt from the selling dealer to the courtesy dealer, and the courtesy dealer is authorized to withhold payment to the selling dealer out of the proceeds of the sale an amount equal to the tax imposed by this chapter.  Amounts withheld by the courtesy dealer are deemed to be held in trust by the courtesy dealer until paid to the department, and any courtesy dealer who appropriates or converts the amount withheld to the courtesy dealer's own use or to any use other than the payment of the tax to the extent that the money withheld is not available for payment on the due date is guilty of a gross misdemeanor.

    (3) This section is construed as cumulative of other methods prescribed in chapters 82.04 through 82.32 RCW, inclusive, for the collection of the tax imposed by this chapter.

    (4) As used in this section, "courtesy dealer" means any licensed new motor vehicle dealer authorized to prepare or deliver a new motor vehicle to a customer in this state.  "Selling dealer" means a motor vehicle dealer not licensed to prepare or deliver a new motor vehicle to a customer in this state.

 

    NEW SECTION.  Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2001.

 


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