SENATE BILL REPORT

                   SB 6227

              As Reported By Senate Committee On:

               Transportation, January 27, 1998

Title:  An act relating to aircraft registration fees and taxes.

Brief Description:  Adjusting aircraft registration fees and tax distribution.

Sponsors:  Senators Haugen, Morton, Winsley, Goings, Rasmussen, Prince and Wood.

Brief History:

Committee Activity:  Transportation:  1/20/98, 1/27/98 [DP-WM].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass and be referred to Committee on Ways & Means.

  Signed by Senators Prince, Chair; Benton, Vice Chair; Wood, Vice Chair; Goings, Haugen, Heavey, Horn, Jacobsen, Morton, Oke, Prentice and Rasmussen.

Staff:  Reema Shawa (786-7301)

Background:  Currently in the State of Washington, there are approximately 4,800 registered aircraft.  Under current distribution laws, 90 percent of the excise tax collected for aircraft registration is deposited in the General Fund and 10 percent is deposited into the Aeronautics Account of the Transportation Fund.  There is also an additional $4 fee attached to every aircraft registration which is dedicated to the Aeronautics Account.  Despite the imbalance of current revenue distributions, the aircraft registration program is entirely administered by the Department of Transportation's Aviation Division.

Summary of Bill:  The current $4 aircraft registration fee is removed.  The State Treasurer must deposit 100 percent of collected excise tax associated with aircraft registration into the Aeronautics Account of the Transportation Fund, as opposed to the General Fund.

Appropriation:  None.

Fiscal Note:  Requested on January 13, 1998.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill would provide the division with the funding necessary to support its current aircraft registration program as the division=s program is very effective, and additional funding would help it provide additional services which they cannot currently do due to the lack of funding.

Testimony Against:  None.

Testified:  PRO:  Bill Brubaker, WSDOT Aviation Division; Jim Kuntz, Port of Walla Walla; Jack McGoldrick, WA Pilots Association; Tom Jensen, WA Air Search & Rescue.