VETO MESSAGE ON HB 2447-S

                   March 30, 1996

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval, Substitute House Bill No. 2447 entitled:

"AN ACT Relating to business and occupation tax exemptions for wholesale transactions involving motor vehicles at auctions;"

     Substitute House Bill No. 2447 creates a new business and occupation tax exemption for proceeds from the sale of automobiles at a wholesale car auction.

     Substitute House Bill No. 2447 would benefit only a few taxpayers, primarily large automobile companies that dispose of vehicles at wholesale auctions and the auction houses that sell them.  This exemption would neither create nor preserve a significant number of permanent jobs in our state.

     Moreover, Substitute House Bill No. 2447 sets a precedent for other businesses to seek similar exemptions to relieve them of business and occupation taxes on the auction of construction equipment or other goods.  I cannot approve of this variation in general revenue policy.

     For these reasons, I have vetoed Substitute House Bill No. 2447 in its entirety.

                   Respectfully submitted,

                   Mike Lowry

                   Governor