S-0324.1  _______________________________________________

                         SENATE BILL 5146

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Senator McCaslin

Read first time 01/12/95.  Referred to Committee on Transportation.

Basing vehicle excise tax on depreciated purchase price.

    AN ACT Relating to the basis of vehicle excise taxes; amending RCW 82.44.020, 82.44.041, 82.50.410, 82.50.425, and 82.50.530; creating a new section; and repealing RCW 82.44.065 and 82.44.130.

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

    Sec. 1.  RCW 82.44.020 and 1993 sp.s. c 23 s 61 are each amended to read as follows:

    (1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses.  The annual amount of such excise tax shall be two percent of the ((value)) depreciated purchase price of such vehicle.

    (2) An additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the ((value)) depreciated purchase price of such vehicle.

    (3) ((Effective with October 1992 motor vehicle registration expirations,)) A clean air excise tax is imposed in addition to any other tax imposed by this section for the privilege of using in the state any motor vehicle as defined in RCW 82.44.010, except that farm vehicles as defined in RCW 46.04.181 shall not be subject to the tax imposed by this subsection.  The annual amount of the additional excise tax shall be ((two dollars and twenty-five cents.  Effective with July 1994 motor vehicle registration expirations, the annual amount of additional excise tax shall be)) two dollars.

    (4) An additional excise tax is imposed on truck-type power units that are used in combination with a trailer to transport loads in excess of forty thousand pounds combined gross weight.  The annual amount of such additional excise tax shall be fifty-eight one-hundredths of one percent of the ((value)) depreciated purchase price of the vehicle.

    The department shall distribute the additional tax collected under this subsection as follows:

    (a) For each trailing unit subject to subsection (5) of this section, an amount equal to the clean air excise tax prescribed in subsection (3) of this section shall be distributed in the manner prescribed in RCW 82.44.110(3);

    (b) Of the remainder of the additional excise tax collected under this subsection, ten percent shall be distributed in the manner prescribed in RCW 82.44.110(2) and ninety percent shall be distributed in the manner prescribed in RCW 82.44.110(1).  This tax shall not apply to power units used exclusively for hauling logs.

    (5) The excise taxes imposed by subsections (1) through (3) of this section shall not apply to trailing units which are used in combination with a power unit subject to the additional excise tax imposed by subsection (4) of this section.  This subsection shall not apply to trailing units used for hauling logs. 

    (6) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

    (7) Washington residents, as defined in RCW 46.16.028, who license motor vehicles in another state or foreign country and avoid Washington motor vehicle excise taxes are liable for such unpaid excise taxes.  The department of revenue may assess and collect the unpaid excise taxes under chapter 82.32 RCW, including the penalties and interest provided therein.

    Sec. 2.  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)) depreciated purchase price of a ((truck-type power or trailing unit shall be)) vehicle is the latest purchase price of the vehicle, including all trade-in allowances and 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)) depreciated purchase price 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 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 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

    (4))) For purposes of this chapter, ((value shall)) depreciated purchase price excludes 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.

(4) For purposes of establishing the depreciated purchase price on vehicles, except truck-type power or trailing units, already titled or registered on July 1, 1996, the title year or if the vehicle is not titled in this state, the year the vehicle was first registered in this state is considered the first year of service.  The department shall determine the purchase price by using the current method for determining the value of the vehicle on the date of first year of service as determined in this subsection.  For truck-type power or trailing units, the department shall use the purchase price of record.

    Sec. 3.  RCW 82.50.410 and 1991 c 199 s 225 are each amended to read as follows:

    The rate and measure of tax imposed by RCW 82.50.400 for each registration year shall be one percent, and a surcharge of one-tenth of one percent, of the ((value)) depreciated purchase price of the travel trailer or camper, as determined in the manner provided in this chapter:  PROVIDED, That the excise tax upon a travel trailer or camper licensed for the first time in this state after the last day of any registration month may only be levied for the remaining months of the registration year including the month in which the travel trailer or camper is first licensed:  PROVIDED FURTHER, That the minimum amount of tax payable shall be two dollars:  PROVIDED FURTHER, That every dealer in mobile homes or travel trailers, for the privilege of using any mobile home or travel trailer eligible to be used under a dealer's license plate, shall pay an excise tax of two dollars, and such tax shall be collected upon the issuance of each original dealer's license plate, and also a similar tax shall be collected upon the issuance of each dealer's duplicate license plate, which taxes shall be in addition to any tax otherwise payable under this chapter.

    A travel trailer or camper shall be deemed licensed for the first time in this state when such vehicle was not previously licensed by this state for the registration year or any part thereof immediately preceding the registration year in which application for license is made or when it has been registered in another jurisdiction subsequent to any prior registration in this state.

    Sec. 4.  RCW 82.50.425 and 1990 c 42 s 323 are each amended to read as follows:

    For the purpose of determining the tax under this chapter, the ((value)) depreciated purchase price of a travel trailer or camper is the ((manufacturer's base suggested retail)) latest purchase price, including all trade-in allowances, of the travel trailer or camper ((when first offered for sale as new)), excluding ((any optional equipment,)) applicable federal excise taxes, state and local sales or use taxes, transportation or shipping costs, ((or)) and preparatory or delivery costs, multiplied by the ((applicable)) following percentage ((listed in this section)) based on the year of service of the travel trailer or camper since its latest ownership transfer.  The latest ownership transfer year is considered the first year of service.

    ((If the manufacturer's base suggested retail price is unavailable or 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:))

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 more 10

    (1) ((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 travel trailer or camper.  The department may use an appraisal by the county assessor.  In valuing a travel trailer or camper for which the current value or selling price is not indicative of the value of similar travel trailers or campers of the same year and model, the department shall establish a value that more closely represents the average value of similar travel trailers or campers of the same year and model.))  If the travel trailer or camper is home-built, the ((value)) purchase price for first registration shall not be less than the cost of construction.

    (2) ((The value determined in subsection (1) of this section shall be divided by the applicable percentage listed in this section 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 travel trailer or camper for which the value is determined.

           YEAR OF SERVICE                               PERCENTAGE

              1                               100

              2                                90

              3                                84

              4                                79

              5                                73

              6                                65

              7                                60

              8                                55

              9                                50

             10                                45

             11                                41

             12                                37

             13                                33

             14                                28

             15                                24

           16 or older                       20))

For purposes of establishing the depreciated purchase price on travel trailers and campers already titled or registered on July 1, 1996, the title year or if the vehicle is not titled in this state, the year the vehicle was first registered in this state is considered the first year of service.  The department shall determine the purchase price by using the current method for determining the value of the vehicle on the date of first year of service as determined in this subsection.

    Sec. 5.  RCW 82.50.530 and 1993 c 32 s 1 are each amended to read as follows:

    No mobile home, travel trailer, or camper which is a part of the inventory of mobile homes, travel trailers, or campers held for sale by a dealer in the course of his or her business ((and no travel trailer or camper as defined in RCW 82.50.010)) shall be listed and assessed for ad valorem taxation.  However, if a park trailer as defined in RCW 46.04.622 has substantially lost its identity as a mobile unit by virtue of its being permanently fixed in location upon land owned or leased by the owner of the park trailer and placed on a permanent foundation of either posts or blocks with fixed pipe connections with sewer, water, or other utilities it will be considered real property and will be subject to ad valorem property taxation imposed in accordance with the provisions of Title 84 RCW, including the provisions with respect to omitted property, except that a park trailer located on land leased by the owner of the park trailer shall be subject to the personal property provisions of chapter 84.56 RCW and RCW 84.60.040.

NEW SECTION. Sec. 6.  The following acts or parts of acts are each repealed:

(1) RCW 82.44.065 and 1990 c 42 s 305; and

(2) RCW 82.44.130 and 1961 c 15 s 82.44.130.

NEW SECTION. Sec. 7.  This act first applies to vehicle excise taxes that are due or become due on July 1, 1996, and thereafter.

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