H-1336.1          _______________________________________________

                                  HOUSE BILL 1622

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State of Washington              54th Legislature             1995 Regular Session

By Representatives Brown, Dellwo, Kremen, Quall, Morris, Chappell, Mason, Regala, Mastin, Grant, Costa and Kessler

Read first time 02/01/95.  Referred to Committee on Finance.

Reducing the state sales and use tax rates.

     AN ACT Relating to reduction of the state sales and use tax rate; amending RCW 82.08.020; providing an effective date; and declaring an emergency.

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

     Sec. 1.  RCW 82.08.020 and 1992 c 194 s 9 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)) three-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 taxes imposed under this chapter shall apply to successive retail sales of the same property.

     (4) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

NEW SECTION. Sec. 2.  This act is 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 July 1, 1995.

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