HOUSE BILL REPORT

EHB 403

BYRepresentatives Walk and Schmidt; by request of Department of Transportation

Transferring responsibility for aircraft registration and excise tax collection to the department of transportation.

House Committe on Transportation

Majority Report:  Do pass with amendment.  (28)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Cantwell, Cooper, Day, Dellwo, Doty, Fisch, Fisher, Gallagher, Hankins, Haugen, Heavey, Kremen, Meyers, Patrick, Prince, Schmidt, C. Smith, D. Sommers, Spanel, Sutherland, Vekich, J. Williams, K. Wilson, S. Wilson and Zellinsky.

House Staff:Robin Rettew (786-7306)

AS PASSED HOUSE MARCH 6, 1987

BACKGROUND:

Pilot registration fees are currently collected by the Department of Transportation, but aircraft registration and aircraft excise taxes are collected by the Department of Licensing.  This split of administrative responsibilities creates confusion for the taxpayer.

An increasing number of small aircraft are being certified by the Federal Aviation Administration (FAA) to use motor fuel.  Although individuals using motor fuel in an aircraft are entitled to a refund on the gas taxes they paid on such fuel, many individuals do not bother with collecting their refunds.  However, if a refund is collected, then use tax liability arises.  The use tax is credited to the General Fund.

SUMMARY:

Responsibility for administering aircraft registration fees and aircraft excise taxes is transferred to the Department of Transportation (DOT).  The cost for administering these taxes will be met by transferring 10 percent of the excise taxes from the General Fund to the Aeronautics Account.  In addition, an annual transfer will be made from the Motor Vehicle Fund to both the Aeronautics Account and to the General Fund.  These transfers will equal the difference between .028 percent of gross motor vehicle fuel tax receipts and the total amount of refunds claimed for motor fuel purchases used for non- highway purposes.

DOT is granted authority to require aircraft registrations on a staggered basis and to raise registration fees from $5 to $10.  There is no plan to change either the collection date or to increase the fees for the 1987-89 biennium.

The estimated fiscal impact is:  GF--$136,253; MVF--($360,041); AA-- $223,788.

Estimated expenditures are $223,787.  There is one additional FTE.  $223,787 or so much as may be necessary is appropriated from the Aeronautics Account of the General Fund.

Appropriation:    $223,787 is appropriated from the Aeronautics Account of the General Fund to the Department of Transportation.

Fiscal Note:      Requested February 12, 1987.

House Committee ‑ Testified For:    Bill Hamilton, Aeronautics Division, Department of Transportation; Ray Costello, Aircraft Owners and Pilots Association; Jack Addington, Tacoma Narrows Airport; Donna Wilson, Washington Pilots Association; John Root, Washington Pilots Association; Price Miller, Pierce County Chapter, Washington Pilots Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Better service would be provided to the public.  One central point for aviation information would be provided.  Improved administration based on centralized data would be provided.

House Committee - Testimony Against:      None Presented.