AN ACT
Relating to excise taxation of vehicles used for short-term rental; amending
RCW 82.08.020, 81.100.060, and 81.104.160; reenacting and amending RCW
35.58.273; adding new sections to chapter 46.04 RCW; adding new sections to
chapter 82.08 RCW; adding a new section to chapter 82.14 RCW; adding a new
section to chapter 46.16 RCW; adding a new section to chapter 46.87 RCW; adding
a new section to chapter 82.44 RCW; creating a new section; prescribing
penalties; providing effective dates; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A new
section is added to chapter 46.04 RCW to read as follows:
(1)
"Rental car" means a passenger car, as defined in RCW 46.04.382, that
is used solely by a rental car business for rental to others, without a driver
provided by the rental car business, for periods of not more than thirty
consecutive days.
(2)
"Rental car" does not include:
(a)
Vehicles rented or loaned to customers by automotive repair businesses while
the customer's vehicle is under repair;
(b)
Vehicles licensed and operated as taxicabs.
NEW
SECTION. Sec. 2. A new
section is added to chapter 82.08 RCW to read as follows:
For
purposes of this chapter, "retail car rental" means renting a rental
car, as defined in section 1 of this act, to a consumer.
NEW
SECTION. Sec. 3. A new
section is added to chapter 82.14 RCW to read as follows:
The
legislative authority of any county may impose a sales and use tax, in addition
to the tax authorized by RCW 82.14.030, upon retail car rentals within the
county that are taxable by the state under chapters 82.08 and 82.12 RCW. The
rate of tax shall be one percent of the selling price in the case of a sales
tax or rental value of the vehicle in the case of a use tax. Proceeds of the
tax shall not be used to subsidize any professional sports team and shall be
used solely for the following purposes:
(1)
Acquiring, constructing, maintaining, or operating public sports stadium
facilities;
(2)
Engineering, planning, financial, legal, or professional services incidental to
public sports stadium facilities; or
(3)
Youth or amateur sport activities or facilities.
NEW
SECTION. Sec. 4. The
legislature intends to exempt rental cars from state and local motor vehicle
excise taxes, and to impose additional sales and use taxes in lieu thereof.
These additional sales and use taxes are intended to provide as much revenue to
the funds currently receiving motor vehicle excise tax revenue, including the
transportation funds and the general fund, as each fund would have received if
the motor vehicle excise tax exemptions had not been enacted. Revenues from
these additional sales and use taxes are intended to be distributed in the same
manner as the motor vehicle excise tax revenues they replace.
NEW
SECTION. Sec. 5. A new
section is added to chapter 46.04 RCW to read as follows:
"Rental
car business" means a person engaging within this state in the business of
renting rental cars, as determined under rules of the department of licensing.
NEW
SECTION. Sec. 6. A new
section is added to chapter 46.16 RCW to read as follows:
Rental
cars shall be registered and licensed as provided in chapter 46.87 RCW.
NEW
SECTION. Sec. 7. A new
section is added to chapter 46.87 RCW to read as follows:
(1)
Rental car businesses must register with the department of licensing. This
registration must be renewed annually by the rental car business.
(2)
Rental car businesses must obtain a certificate of ownership and indicate that
the vehicle is a rental car. Registration must be obtained for all rental cars
and shall be valid for the period in which the rental car is part of an
authorized business up to a maximum of twelve months.
(3) In
addition to all other fees prescribed for the registration of vehicles under
chapter 46.16 RCW, the department shall collect a fee of five dollars per
registration for the administration of the program and a vehicle transaction
fee as authorized in RCW 46.87.130 to be deposited to the motor vehicle fund.
(4)
Use of rental cars is restricted to the rental customer unless otherwise
provided by rule.
(5)
The department will issue rental car license plates to businesses authorized
under this section. A rental car business shall pay a fee of ten dollars for
each set of rental car license plates as defined in RCW 46.87.090. Rental cars
no longer eligible for use of the rental plates will be considered unlicensed
vehicles and must be registered and pay the required motor vehicle excise taxes
and registration fees prior to operation on public roads of this state.
(6)
The department may authorize rental car businesses to issue temporary
authorization permits as defined in RCW 46.87.080.
(7)
The department may suspend or cancel the exemptions, benefits, or privileges
granted under this section to any person or business firm who violates the laws
of this state relating to the operation or registration of vehicles or rules
lawfully adopted thereunder. The department may initiate and conduct audits, investigations,
and enforcement actions as may be reasonably necessary for administering this
section.
(8)
Except as provided in this section or by rule adopted pursuant to this section,
the transfer or use of the rental plates is a traffic infraction subject to a
fine not to exceed five hundred dollars. Any law enforcement agency that
determines that a special license plate has not been used in conformance with
this section will confiscate the license plates and return them to the
department for nullification along with full details of the reasons for
confiscation.
(9)
The department shall adopt such rules as may be necessary to administer and
enforce the provisions of this section.
NEW
SECTION. Sec. 8. A new
section is added to chapter 82.44 RCW to read as follows:
Rental
cars as defined in section 1 of this act are exempt from the taxes imposed in
RCW 82.44.020 (1) and (2).
Sec.
9. RCW
82.08.020 and 1985 c 32 s 1 are each amended to read as follows:
(1)
There is levied and there shall be collected a tax on each retail sale in this
state equal to six and five-tenths percent of the selling price.
(2) There
is levied and there shall be collected an additional tax on each retail car
rental, regardless of whether the vehicle is licensed in this state, equal to
five and nine-tenths percent of the selling price. Ninety-one percent of the
revenue collected under this subsection shall be deposited and distributed in
the same manner as motor vehicle excise tax revenue collected under RCW
82.44.020(1). Nine percent of the revenue collected under this subsection
shall be deposited in the transportation fund and distributed in the same manner
as motor vehicle excise tax revenue collected under RCW 82.44.020(2).
(3)
The ((tax)) taxes imposed under this chapter shall apply to
successive retail sales of the same property.
(((3)))
(4) The rates provided in this section ((applies)) apply
to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.
NEW
SECTION. Sec. 10. A new
section is added to chapter 82.08 RCW to read as follows:
Before
January 1, 1994, and January 1 of each odd-numbered year thereafter:
The
department of licensing, with the assistance of the department of revenue,
shall provide the office of financial management and the fiscal committees of
the legislature with an updated estimate of the amount of revenue attributable
to the taxes imposed in RCW 82.08.020(2), and the amount of revenue not
collected as a result of section 8 of this act.
Sec.
11. RCW
35.58.273 and 1991 c 339 s 29 and 1991 c 309 s 1 are each reenacted and amended
to read as follows:
(1)
Through June 30, 1992, any municipality, as defined in this subsection, is
authorized to levy and collect a special excise tax not exceeding .7824 percent
and beginning July 1, 1992, .725 percent on the value, as determined under
chapter 82.44 RCW, of every motor vehicle owned by a resident of such
municipality for the privilege of using such motor vehicle provided that in no
event shall the tax be less than one dollar and, subject to RCW 82.44.150 (3)
and (4), the amount of such tax shall be credited against the amount of the
excise tax levied by the state under RCW 82.44.020(1). As used in this
subsection, the term "municipality" means a municipality that is
located within (a) each county with a population of two hundred ten thousand or
more and (b) each county with a population of from one hundred twenty-five
thousand to less than two hundred ten thousand except for those counties that
do not border a county with a population as described under subsection (a) of
this subsection.
(2)
Through June 30, 1992, any other municipality is authorized to levy and collect
a special excise tax not exceeding .815 percent, and beginning July 1, 1992,
.725 percent on the value, as determined under chapter 82.44 RCW, of every
motor vehicle owned by a resident of such municipality for the privilege of
using such motor vehicle provided that in no event shall the tax be less than
one dollar and, subject to RCW 82.44.150 (3) and (4), the amount of such tax
shall be credited against the amount of the excise tax levied by the state under
RCW 82.44.020(1). Before utilization of any excise tax moneys collected
under authorization of this section for acquisition of right of way or
construction of a mass transit facility on a separate right of way the
municipality shall adopt rules affording the public an opportunity for
"corridor public hearings" and "design public hearings" as
herein defined, which rule shall provide in detail the procedures necessary for
public participation in the following instances: (a) prior to adoption of
location and design plans having a substantial social, economic or
environmental effect upon the locality upon which they are to be constructed or
(b) on such mass rapid transit systems operating on a separate right of way
whenever a substantial change is proposed relating to location or design in the
adopted plan. In adopting rules the municipality shall adhere to the
provisions of the Administrative Procedure Act.
(3) A
"corridor public hearing" is a public hearing that: (a) is held
before the municipality is committed to a specific mass transit route proposal,
and before a route location is established; (b) is held to afford an
opportunity for participation by those interested in the determination of the
need for, and the location of, the mass rapid transit system; (c) provides a
public forum that affords a full opportunity for presenting views on the mass
rapid transit system route location, and the social, economic and environmental
effects on that location and alternate locations: PROVIDED, That such hearing
shall not be deemed to be necessary before adoption of an overall mass rapid
transit system plan by a vote of the electorate of the municipality.
(4) A
"design public hearing" is a public hearing that: (a) is held after
the location is established but before the design is adopted; and (b) is held
to afford an opportunity for participation by those interested in the
determination of major design features of the mass rapid transit system; and
(c) provides a public forum to afford a full opportunity for presenting views
on the mass rapid transit system design, and the social, economic,
environmental effects of that design and alternate designs.
(5)
A municipality imposing a tax under subsection (1) or (2) of this section may
also impose a sales and use tax, in addition to the tax authorized by RCW
82.14.030, upon retail car rentals within the municipality that are taxable by
the state under chapters 82.08 and 82.12 RCW. The rate of tax shall bear the
same ratio to the rate imposed under RCW 82.08.020(2) as the excise tax rate
imposed under subsection (1) of this section bears to the excise tax rate
imposed under RCW 82.44.020 (1) and (2). The base of the tax shall be the
selling price in the case of a sales tax or the rental value of the vehicle
used in the case of a use tax. The tax imposed under this section shall be
deducted from the amount of tax otherwise due under RCW 82.08.020(2). The
revenue collected under this subsection shall be distributed in the same manner
as special excise taxes under subsections (1) and (2) of this section.
Sec.
12. RCW
81.100.060 and 1991 c 363 s 154 are each amended to read as follows:
A
county with a population of one million or more and a county with a population
of from two hundred ten thousand to less than one million that is adjoining a
county with a population of one million or more, having within their boundaries
existing or planned high occupancy vehicle lanes on the state highway system
may, with voter approval, impose a local surcharge of not more than fifteen
percent on the state motor vehicle excise tax paid under RCW 82.44.020(1) on
vehicles registered to a person residing within the county and on the state
sales and use taxes paid under the rate in RCW 82.08.020(2) on retail car
rentals within the county. No surcharge may be imposed on vehicles
licensed under RCW 46.16.070 except vehicles with an unladen weight of six
thousand pounds or less, RCW 46.16.079, 46.16.080, 46.16.085, or 46.16.090.
Counties
imposing a tax under this section shall contract, before the effective date of
the resolution or ordinance imposing a surcharge, administration and collection
to the state department of licensing, and department of revenue, as
appropriate, which shall deduct an amount, as provided by contract, for
administration and collection expenses incurred by the department. All
administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall,
insofar as they are applicable to state motor vehicle excise taxes, be
applicable to surcharges imposed under this section. All administrative
provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW shall, insofar as
they are applicable to state sales and use taxes, be applicable to surcharges
imposed under this section.
If the
tax authorized in RCW 81.100.030 is also imposed by the county, the total
proceeds from ((both)) tax sources imposed under this section and RCW
81.100.030 each year shall not exceed the maximum amount which could be
collected under this section.
Sec.
13. RCW
81.104.160 and 1991 c 318 s 12 are each amended to read as follows:
(1)
Any city that operates a transit system, county transportation authority,
metropolitan municipal corporation, or public transportation benefit area,
solely for the purpose of providing high capacity transportation service may
submit an authorizing proposition to the voters, and if approved, may levy and
collect an excise tax, at a rate approved by the voters, but not exceeding
eighty one-hundredths of one percent on the value, under chapter 82.44 RCW, of
every motor vehicle owned by a resident of such city, county transportation
authority, metropolitan municipal corporation, or public transportation benefit
area. In any county imposing a motor vehicle excise tax surcharge pursuant to
RCW 81.100.060, the maximum tax rate under this section shall be reduced to a
rate equal to eighty one-hundredths of one percent on the value less the
equivalent motor vehicle excise tax rate of the surcharge imposed pursuant to
RCW 81.100.060. This rate shall not apply to vehicles licensed under RCW
46.16.070 except vehicles with an unladen weight of six thousand pounds or
less, RCW 46.16.079, 46.16.080, 46.16.085, or 46.16.090.
(2)
An agency imposing a tax under subsection (1) of this section may also impose a
sales and use tax solely for the purpose of providing high capacity
transportation service, in addition to the tax authorized by RCW 82.14.030,
upon retail car rentals within the agency's jurisdiction that are taxable by
the state under chapters 82.08 and 82.12 RCW. The rate of tax shall bear the
same ratio to the rate imposed under RCW 82.08.020(2) as the excise tax rate
imposed under subsection (1) of this section bears to the excise tax rate
imposed under RCW 82.44.020 (1) and (2). The base of the tax shall be the
selling price in the case of a sales tax or the rental value of the vehicle
used in the case of a use tax. The revenue collected under this subsection
shall be used in the same manner as excise taxes under subsection (1) of this
section.
NEW
SECTION. Sec. 14. (1)
Sections 1 through 3 of this act are necessary for the immediate preservation
of the public peace, health, or safety, or support of the state government and
its existing public institutions, and shall take effect June 1, 1992.
(2)
Sections 4 through 13 of this act shall take effect January 1, 1993.
