S-4777               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 6376

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Transportation (originally sponsored by Senators Nelson, McMullen, Metcalf and Bender; by request of Governor)

Read first time 2/5/88.

AN ACT Relating to motor vehicle excise tax; reenacting and amending RCW 82.44.020; and creating a new section.

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

        Sec. 1.  Section 82.44.020, chapter 15, Laws of 1961 as last amended by section 1, chapter 260, Laws of 1987 and by section 5, chapter 9, Laws of 1987 1st ex. sess. and RCW 82.44.020 are each reenacted and amended to read as follows:

          (1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses.  The annual amount of such excise tax shall be two percent of the fair market value of such vehicle.

          (2) An additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the fair market value of such vehicle.

          (3) Effective with January, 1989, motor vehicle license expirations, and ending after December, ((1990)) 1991, expirations,  an additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise tax shall be one-tenth of one percent of the fair market value of such vehicle.

          (4) The department of licensing and county auditors shall collect the additional tax imposed by subsections (2) and (3) of this section for any registration year for the months of that registration year in which such additional tax is effective, and in the same manner and at the same time as the tax imposed by subsection (1) of this section.

          (5) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

          (6) An additional tax is imposed equal to the taxes payable under subsections (1) and (2) of this section multiplied by the rate specified in RCW 82.02.030.

          (7) Washington residents, as defined in RCW 46.16.028, who license motor vehicles in another state or foreign country and avoid Washington motor vehicle excise taxes are liable for such unpaid excise taxes.  The department of revenue may assess and collect the unpaid excise taxes under chapter 82.32 RCW, including the penalties and interest provided therein.

NEW SECTION. Sec. 2.     A joint committee is created to study the state motor vehicle excise tax.  The study shall include, but not be limited to, a historical review of the distribution of the tax revenues, the current distribution of the tax revenues, and an evaluation of the current and historical purposes of the tax revenue distributions.  The joint committee shall report its findings, including any recommended changes to the motor vehicle excise tax, to the house and senate standing committees on transportation and ways and means by November 1, 1988.

          The chairpersons of the house transportation committee, the senate transportation committee, the senate ways and means committee, and the house ways and means committee shall each appoint three of its members to serve on the joint committee.  The director of financial management shall appoint three employees of the office of financial management staff to serve on the joint committee.  The members of the joint committee shall elect a chairperson from the membership of the committee.