FINAL BILL REPORT

                      HB 2727

                                 C 154 L 92

                            Synopsis As Enacted

Brief Description:  Modifying provisions for the taxation of aircraft, watercraft, and travel trailer and camper excise taxes.

By Representatives Fraser and Brumsickle; by request of Department of Revenue.

House Committee on Revenue

Senate Committee on Ways & Means

Background:  The motor vehicle excise tax (MVET) is levied annually on the value of motor vehicles licensed by state residents.  Washington residents who license motor vehicles outside the state must pay MVET to the Department of Licensing (DOL) at the time the vehicle is brought into the state.  Residents who avoid MVET by registering vehicles in another state or country are liable for unpaid taxes.  If liability for unpaid MVET is discovered, the Department of Revenue (DOR) may collect the back taxes along with penalties and interest.

The state levies annual excise taxes on aircraft, watercraft, and travel trailers/campers.  The Department of Transportation administers the aircraft excise tax, and the watercraft and travel trailer/camper excise taxes are administered by DOL.  Neither DOR nor these agencies have specific authority to collect back taxes from residents who do not properly license aircraft, watercraft, travel trailers, and campers in the state.

Summary:  DOR is authorized to collect unpaid aircraft, watercraft, and travel trailer/camper excise taxes along with the penalties and interest.

Votes on Final Passage:

House 97    0

Senate   42    4    (Senate amended)

House 95    0    (House concurred)

Effective:     July 1, 1992