SENATE BILL REPORT

                   HB 2660

              As Reported By Senate Committee On:

               Transportation, February 23, 1996

Title:  An act relating to refunds and credits of certain motor vehicle fees and special fuel taxes.

Brief Description:  Revising procedures for refund of certain fees and taxes.

Sponsors:  Representatives Cairnes and R. Fisher; by request of Department of Licensing.

Brief History:

Committee Activity:  Transportation:  2/15/96, 2/23/96 [DP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.

  Signed by Senators Owen, Chair; Heavey, Vice Chair; Goings, Haugen, Morton, Prentice, Prince, Rasmussen, Schow, Thibaudeau and Wood.

Staff:  Jeff Doyle (786-7322)

Background:  Persons who discover they have overpaid their motor vehicle excise taxes (MVET) may request refunds from the Department of Licensing (DOL), no matter how small the amount of overpayment.  In addition to these requested refunds, the department, on its own initiative, issues automatic MVET refunds to persons who have overpaid by $5 or more.  However, the administrative cost of processing an automatic (non-requested) refund is greater than $5.

Summary of Bill:  The threshold for an automatic (non-requested) refund is raised from $5 to $10.  The department must continue to issue refunds to persons requesting one, no matter how small the amount.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill takes effect on July 1, 1996.

Testimony For:  The cost of providing an automatic refund has increased so that it costs DOL more to process a $5 refund.

Testimony Against:  None.

Testified:  Rep. Cairnes, prime sponsor; Jim Wadsworth, DOL (pro).