SENATE BILL REPORT

SB 5327

BYSenators Patterson, Craswell, Metcalf, Vognild and McMullen; by request of Governor

Permanently extending the 0.10 percent motor vehicle excise tax for ferry operations.

Senate Committee on Transportation

Senate Hearing Date(s):February 2, 1989

Senate Staff:Gene Schlatter (786-7316)

AS OF JANUARY 30, 1989

BACKGROUND:

The Legislature passed a temporary .1 percent increase in the motor vehicle excise tax (MVET) which is dedicated to the ferry system operating budget.  This temporary rate increase is scheduled to sunset in December, 1990.

Without additional operating revenue, the ferry system cannot avoid future transfers from the capital construction account and still maintain a fare/subsidy ratio of 70/30 percent.

SUMMARY:

The sunset date of December, 1990 is eliminated for the temporary .1 percent motor vehicle excise tax, thereby making this a permanent revenue source for the ferry system operating budget.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 24, 1989