S-4262.1  _______________________________________________

                         SENATE BILL 6364

          _______________________________________________

State of Washington      53rd Legislature     1994 Regular Session

By Senator West

Read first time 01/20/94.  Referred to Committee on Transportation.

Revising the valuation method for used vehicles.

    AN ACT Relating to valuation of vehicles for excise tax; amending RCW 82.44.041; and providing an effective date.

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

    Sec. 1.  RCW 82.44.041 and 1990 c 42 s 303 are each amended to read as follows:

    (1) For the purpose of determining the tax under this chapter, the value of a truck-type power or trailing unit shall be the latest purchase price of the vehicle, excluding applicable federal excise taxes, state and local sales or use taxes, transportation or shipping costs, or preparatory or delivery costs,  multiplied by the following percentage based on year of service of the vehicle since last sale.  The latest purchase year shall be considered the first year of service.

           YEAR OF SERVICE                               PERCENTAGE

              1                               100

              2                                90

              3                                83

              4                                75

              5                                67

              6                                59

              7                                52

              8                                44

              9                                36

             10                                28

             11                                21

             12                                13

           13 or older                       10

    (2) The reissuance of title and registration for a truck-type power or trailing unit because of the installation of body or special equipment shall be treated as a sale, and the value of the truck-type power or trailing unit at that time, as determined by the department from such information as may be available, shall be considered the latest purchase price.

    (3) For the purpose of determining the tax under this chapter, the value of a motor vehicle other than a truck-type power or trailing unit shall be, for the first year of registration of a new vehicle, the manufacturer's base suggested retail price of the vehicle when first offered for sale as a new vehicle, excluding any optional equipment, applicable federal excise taxes, state and local sales or use taxes, transportation or shipping costs, or preparatory or delivery costs((, multiplied by the applicable percentage listed in this subsection based on year of service of the vehicle)).

    If the manufacturer's base suggested retail price is unavailable or the vehicle's value, whether new or used, is otherwise unascertainable at the time of ((initial)) registration ((in this state)), the department shall determine a value equivalent to a manufacturer's base suggested retail price ((as follows:

    (a) The department shall determine a value)) using any information that may be available, including any guidebook, report, or compendium of recognized standing in the automotive industry or the selling price and year of sale of the vehicle.  The department may use an appraisal by the county assessor.  In valuing a vehicle for which the current value or selling price is not indicative of the value of similar vehicles of the same year and model, the department shall establish a value that more closely represents the average value of similar vehicles of the same year and model.

    (((b) The value determined in (a) of this subsection shall be divided by the applicable percentage listed in this subsection to establish a value equivalent to a manufacturer's base suggested retail price.  The applicable percentage shall be based on the year of service of the vehicle for which the value is determined.

           YEAR OF SERVICE                               PERCENTAGE

              1                               100

              2                               100

              3                                91

              4                                83

              5                                74

              6                                65

              7                                57

              8                                48

              9                                40

             10                                31

             11                                22

             12                                14

           13 or older                       10))

For registration years after the first year of registration for the vehicle, the department shall prepare at least once each year a schedule for use in the collection of the excise tax imposed by this chapter.  The department shall base the schedule on such information as may be available to it pertaining to the value of motor vehicles.  The department shall classify the vehicles into a convenient number of classes on the basis of price, make, type, year of manufacture, or any other reasonable basis, and the rate of tax prescribed in RCW 82.44.020 shall be applied to the value of vehicles within the classes so determined.  In determining value, the department may use any information that may be available, including a guidebook, report, or compendium of recognized standing in the automotive industry or the selling price and year of sale of the vehicle.  The schedule must show, so far as possible, the amount of excise tax for vehicles within each class and must sufficiently describe the various motor vehicles included within each classification to enable the department of licensing and its agents to ascertain readily the amount of tax applicable to any particular vehicle.

    (4) For purposes of this chapter, value shall exclude value attributable to modifications of a motor vehicle and equipment that are designed to facilitate the use or operation of the motor vehicle by a handicapped person.

NEW SECTION. Sec. 2.  This act applies to vehicle registrations that expire in January 1996 and thereafter.

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