WSR 14-09-084

PREPROPOSAL STATEMENT OF INQUIRY

[Filed April 21, 2014, 3:11 p.m.]

Subject of Possible Rule Making: WAC 458-20-17802 Collection of use tax by county auditors and department of licensing—Measure of tax.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300, 82.01.060(2), 82.12.045.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule explains how county auditors, their subagents, and the department of licensing determine the measure of any use tax due when a person transfers the certificate of title for a vehicle. Subsection (4) of the rule explains that the purchase price will be used to compute the use tax due when the purchase price represents the vehicle's true value. Subsection (4)(a) explains that the purchase price will be presumed to represent the vehicle's true value if the vehicle's average retail value, as provided by the automated valuing system, is less than $3,000. The department is considering raising this threshold to $5,000.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The department of revenue has authorized county auditors and the department of licensing to collect the use tax when a person applies to transfer a certificate of title of a vehicle under the authority of RCW 82.12.045. The department of licensing provides the automated system to help in the determination of the measure of use tax due at the time of transfer, and has and will be consulted regarding this potential revision.

Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule making or giving oral testimony at the public meeting or public hearing.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. The department is at this time requesting written comments regarding this possible rule making. Please provide any written comments by May 25, 2014. Written comments may be submitted by mail and should be directed to Gayle Carlson, ITA Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail GayleC@dor.wa.gov.

April 21, 2014

Dylan Waits

Rules Coordinator