BP BHEAD INT S [atlas:bill]

AN ACT Relating to reductions in motor vehicle excise tax through uniform reductions in vehicle value; amending RCW 82.44.041 and 82.44.110; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that projected surpluses in the state's general fund warrant reductions in the level of taxation in Washington state. Further, it is the intent of the legislature to provide these tax reductions in a manner that will benefit the general citizenry of the state.

Recognizing that the cost of registering a motor vehicle contributes to the high cost of motor vehicle ownership in this state, it is the intent of this act to reduce the rate of motor vehicle excise tax on automobiles, motorcycles, light trucks, and motor homes. Such a reduction can most equitably be accomplished by a general reduction in the value of vehicles to which the tax is applied.

It is further the intent of the legislature that reductions in revenue from the motor vehicle excise tax be funded from projected surpluses in the state general fund and not have a detrimental effect on other vital programs that receive dedicated funding from the motor vehicle excise tax.

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 of a truck-type power or trailing unit shall be the latest purchase price of the vehicle, 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 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

(c) The value determined under (b) of this subsection shall be reduced by the lesser of two thousand five hundred dollars, or the value of the vehicle if the value of the vehicle is less than two thousand five hundred dollars. The reduced vehicle value derived under this subsection shall apply only to the tax imposed under RCW 82.44.020 (1) and (2). Distributions from the proceeds of the tax imposed under RCW 82.44.020 (1) and (2) shall be made, except for distributions to the general fund under RCW 82.44.110(1)(g), without the reduction in vehicle value in this subsection (3)(c), and distributions to the general fund under RCW 82.44.110(1)(g) shall be reduced in an amount equal to the reduction in revenues attributable to this subsection. This subsection shall not apply to motor vehicle excise taxes imposed under other sections of state law, including, but not limited to RCW 35.58.273, 81.100.060, 81.104.160, and 82.44.020 (3), (4), and (6).

(4) For purposes of this chapter, value shall exclude 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.

Sec. 3. RCW 82.44.110 and 1997 c 338 s 68 are each amended to read as follows:

The county auditor shall regularly, when remitting license fee receipts, pay over and account to the director of licensing for the excise taxes collected under the provisions of this chapter. The director shall forthwith transmit the excise taxes to the state treasurer.

(1) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(1), and subject to the condition in RCW 82.44.041(3)(c), as follows:

(a) 1.60 percent into the motor vehicle fund to defray administrative and other expenses incurred by the department in the collection of the excise tax.

(b) 8.15 percent into the Puget Sound capital construction account in the motor vehicle fund.

(d) 5.88 percent into the general fund to be distributed under RCW 82.44.155.

(e) 4.75 percent into the municipal sales and use tax equalization account in the general fund created in RCW 82.14.210.

(f) 1.60 percent into the county sales and use tax equalization account in the general fund created in RCW 82.14.200.

(g) ((~~62.6440 percent into the general fund through June 30, 1995, and~~)) 57.6440 percent into the general fund ((~~beginning July 1, 1995~~)).

(h) 5 percent into the transportation fund created in RCW 82.44.180 beginning July 1, 1995.

(i) 5.9686 percent into the county criminal justice assistance account created in RCW 82.14.310.

(j) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.320.

(k) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.330.

(l) 2.95 percent into the county public health account created in RCW 70.05.125.

Notwithstanding (i) through (k) of this subsection, no more than sixty million dollars shall be deposited into the accounts specified in (i) through (k) of this subsection for the period January 1, 1994, through June 30, 1995. Not more than five percent of the funds deposited to these accounts shall be available for appropriations for enhancements to the state patrol crime laboratory system and the continuing costs related to these enhancements. Motor vehicle excise tax funds appropriated for such enhancements shall not supplant existing funds from the state general fund. For the fiscal year ending June 30, 1998, and for each fiscal year thereafter, the amounts deposited into the accounts specified in (i) through (k) of this subsection shall not increase by more than the amounts deposited into those accounts in the previous fiscal year increased by the implicit price deflator for the previous fiscal year. Any revenues in excess of this amount shall be deposited into the violence reduction and drug enforcement account.

(2) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(2) into the transportation fund.

(3) The state treasurer shall deposit the excise tax imposed by RCW 82.44.020(3) into the air pollution control account created by RCW 70.94.015.