S-1737.1          _______________________________________________

                            SUBSTITUTE SENATE BILL 5611

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By Senate Committee on Transportation (originally sponsored by Senators Matson, Patterson, Snyder and Conner).

Read first time February 27, 1991.Studying the excise tax imposed upon car rental vehicles.

     AN ACT Relating to a tax on the rental of fleet vehicles; and creating a new section.

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

NEW SECTION. Sec. 1.      (1) The legislative transportation committee, in cooperation with the state department of licensing, car rental industry, the state department of transportation, the state department of revenue, and other interested parties shall conduct a study for the purpose of analyzing motor vehicle excise taxes imposed upon car rental vehicles in the state of Washington.  The study shall include but not be limited to the following components:

     (a) Whether the motor vehicle excise tax as now imposed upon the car rental industry is fair and equitable;

     (b) Whether there are alternative taxes that may be more equitably applied to the car rental industry, and how such taxes would impact the state, local governments including transit agencies, and the consumer;

     (c) Whether alternative taxes will return to the state and local governments including transit agencies an amount approximately equal to that of the motor vehicle excise tax;

     (d) Whether or not more rental vehicles would be purchased and registered in-state as a result of proposed tax alternatives; and

     (e) What, if any, additional costs or administrative difficulties would result from alternative methods of taxation.

     (2) The study participants shall agree upon the type and extent of data required to analyze current and potential taxation alternatives.  At a minimum, total motor vehicle excise tax collections attributable to rental car companies and total gross revenues as recorded on rental car agreements shall be obtained.  Other data elements that may be considered include (a) usage of rental vehicles that have in-state versus out-of-state plates and the associated revenue with such usage, and (b) rental vehicles used in Washington and the associated revenue generated from such vehicles that are registered under the international registration plan.

     (3) If the required data is not currently available, new methods for obtaining the agreed upon data shall be developed by the appropriate state agency or agencies to fulfill the purpose of this study.

     (4) The study shall include findings and recommendations and shall be submitted to the legislative transportation committee no later than January 1, 1993.  An interim report shall be submitted by January 1, 1992.