H-3254

AN ACT Relating to taxes imposed on the rental of motor vehicles; adding a new chapter to Title 82 RCW; prescribing penalties; and providing an effective date.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of revenue.

(2) "Vehicle rental" means the rental of a vehicle for forty-five consecutive days or less.

(3) "Vehicle" means passenger cars, trucks, truck tractors, utility trailers, motorcycles, and motor homes.

(4) "Vehicle rental tax" means an excise tax imposed by any state expressly on the rental of a vehicle to be paid by the renter.

(5) "Rental vehicle dealer" means any person engaged in this state in the business of renting vehicles to others.

(6) "Renter" means any person entering into a contract for the rental of a vehicle.

NEW SECTION. Sec. 2. There is levied and there shall be collected on each vehicle rental a tax equal to one dollar or the vehicle rental tax imposed by the renter's state of residency, whichever is greater.

NEW SECTION. Sec. 3. The tax imposed by this chapter shall be paid by the renter to the rental vehicle dealer, and each vehicle rental dealer shall collect from the renter the amount of the tax imposed by this chapter. The tax so collected by the rental vehicle dealer shall be deemed to be held in trust by the vehicle rental dealer until paid to the department. Any vehicle rental dealer who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter shall be guilty of a gross misdemeanor.

In case any rental vehicle dealer fails to collect the tax imposed by this chapter or having collected the tax, fails to pay it to the department in the manner prescribed, whether such failure is the result of rental vehicle dealer's own acts or the result of acts or conditions beyond his or her control, shall, nevertheless, be personally liable to the state for the amount of the tax.

The amount of tax, until paid by the renter to the rental vehicle dealer or to the department, shall constitute a debt from the renter to the rental vehicle dealer and any rental vehicle dealer who fails or refuses to collect the tax as required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any renter who refuses to pay any tax due under this chapter shall be guilty of a misdemeanor. The tax required by this chapter to be collected by the rental vehicle dealer shall be stated separately from the rental charge in any invoice or other document of rental.

NEW SECTION. Sec. 4. Periodically, but no less frequently than annually, the department shall publish a schedule of states imposing a vehicle rental tax and the rate of tax applicable in each state. The department shall make the schedule available to all rental vehicle dealers. Rental vehicle dealers who rely in good faith on the information contained in the schedule shall not be liable for failure to collect the proper amount of tax caused by any inaccurate information contained in the schedule. Vehicle rental dealers shall prominently display a copy of a current schedule at a location near the consumer point of purchase for the information of those required to pay the tax imposed by this chapter.

NEW SECTION. Sec. 5. The taxes collected by the department under this chapter shall be deposited by the treasurer into the local highway heritage account created in section 7 of this act.

NEW SECTION. Sec. 6. The department shall adopt such rules as may be necessary to enforce and administer the provisions of this chapter. In addition to such other matters as the department may deem necessary to include in rules to be adopted under this section, such rules shall contain an appropriate definition for the term "state of residency" as used in this chapter. Chapter 82.32 RCW applies to the administration, collection, and enforcement of the taxes imposed by this chapter.

NEW SECTION. Sec. 7. A separate account is hereby created in the state treasury to be known as the local highway heritage account. All receipts from the tax levied by section 2 of this act shall be deposited in the account. Moneys in the account may be spent only after appropriation. Revenue from the local highway heritage account shall be appropriated to the department of transportation to provide grants to incorporated cities and towns with a population of twenty thousand or less and to counties. Money from the account shall be used exclusively to provide information regarding historical or cultural sites and significant natural features visible from or related to state highways, county roads, or city streets, including informational and directional signs, costs of preparing or constructing turnoffs or parking areas expressly for exhibition of such signs, and costs of preparing or improving the visibility of the historical or natural feature to be highlighted. Grants to counties may be used only for projects on county roads and state highways outside federally designated urban areas.

NEW SECTION. Sec. 8. This act shall take effect July 1, 1992.

NEW SECTION. Sec. 9. Sections 1 through 7 of this act shall constitute a new chapter in Title 82 RCW.