HOUSE BILL REPORT

SSB 5858

BYSenate Committee on Commerce & Labor (originally sponsored by Senators Johnson, Warnke, Talmadge, Stratton, Bottiger, McDermott, Bailey, von Reichbauer, Cantu, Lee and McDonald)

Adopting procedures for the collection of the sales tax on the sale of mobile homes by dealers or selling agents.

House Committe on Ways & Means/Revenue

Majority Report:  Do pass.  (10)

      Signed by Representatives Appelwick, Chair; Basich, Bristow, Grimm, Holland, Madsen, Rust, Schoon, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE APRIL 9, 1987

BACKGROUND:

Currently, the Department of Revenue requires the majority of mobile home dealers to submit retail sales taxes on a monthly basis to the department.  Periodically, the department has been unable to collect sales taxes that are owed by mobile home dealers due to business failures.

SUMMARY:

The Department of Revenue is authorized to designate county auditors in the state to act as its collecting agents for sales tax on mobile homes.  A designated agent is required to collect the sales tax on mobile homes at the time of transfer of ownership from a mobile home dealer to the new owner.  An exception is made for an applicant having a written statement from the Department of Revenue indicating that sales tax is not due on that transaction.  It is the duty of an applicant to disclose the selling price of the mobile home.

County auditors that are designated as agents are required to transmit sales tax revenues to the state treasurer minus a $2 fee for each transaction.  Applicants may apply within four years from the date of payment for refunds to the Department of Revenue when sales taxes are not considered to be legally due.  The department is authorized to collect sales tax in accordance with existing administrative procedures.

Revenue received by the state treasurer is deposited in the general fund.  Fees collected by the county auditor are deposited in the county current expense fund.  A duplicate of the transmittal report of the state treasurer is forwarded to the Department of Revenue.

The director of the Department of Licensing is also authorized to act as a designated agent for the collection of sales tax.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.