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SUBSTITUTE HOUSE BILL 1119
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Passed Legislature - 2001 Regular Session
State of Washington 57th Legislature 2001
Regular Session
By
Read first time . Referred to Committee on .
Modifying the taxation
of new and used motor vehicle sales.
AN ACT Relating to the
business and occupation taxation of sales of new and used motor vehicles;
adding new sections to chapter 82.04 RCW; prescribing penalties; providing an
effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. A new section is added
to chapter 82.04 RCW to read as follows:
(1) This chapter does
not apply to amounts received by a motor vehicle dealer licensed under chapter
46.70 RCW, or a dealer licensed by any other state, for the wholesale sale of
used motor vehicles at auctions to licensed dealers.
(2) This chapter does
not apply to amounts derived by a new car dealer from wholesale sales of new
motor vehicles of the same make to other new car dealers where the sales enable
the dealers to adjust their inventory levels as long as the amount paid by the
purchasing dealer does not exceed the amount paid by the selling dealer in the
acquisition of the vehicle, however, the selling dealer may add reasonable expenses
for the preparation of the vehicle for sale or transfer.
NEW SECTION. Sec.
2. A new section is added
to chapter 82.04 RCW to read as follows:
(1) In the payment of
the tax imposed by this chapter on new motor vehicles sold to Washington
customers that are delivered to the customer through courtesy dealers located
in this state, the courtesy dealer is deemed to be the agent for the selling
dealer in reporting and paying the tax imposed by this chapter, unless the
selling dealer is already registered and reporting and remitting taxes under
this chapter. It is the duty of each courtesy dealer to pay the tax imposed by
this chapter to the department when the courtesy dealer files its tax return.
Each courtesy dealer who acts as the agent for the selling dealer in reporting,
paying, and remitting the tax imposed by this chapter must at the time of
paying and remitting its own taxes imposed by this chapter pay the tax due on
the transaction under this section.
(2) The tax paid by the
courtesy dealer on behalf of the selling dealer shall constitute a debt from
the selling dealer to the courtesy dealer, and the courtesy dealer is
authorized to withhold payment to the selling dealer out of the proceeds of the
sale an amount equal to the tax imposed by this chapter. Amounts withheld by
the courtesy dealer are deemed to be held in trust by the courtesy dealer until
paid to the department, and any courtesy dealer who appropriates or converts
the amount withheld to the courtesy dealer's own use or to any use other than
the payment of the tax to the extent that the money withheld is not available
for payment on the due date is guilty of a gross misdemeanor.
(3) This section is
construed as cumulative of other methods prescribed in chapters 82.04 through
82.32 RCW, inclusive, for the collection of the tax imposed by this chapter.
(4) As used in this
section, "courtesy dealer" means any licensed new motor vehicle
dealer authorized to prepare or deliver a new motor vehicle to a customer in
this state. "Selling dealer" means a motor vehicle dealer not
licensed to prepare or deliver a new motor vehicle to a customer in this state.
NEW
SECTION. Sec. 3. 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 takes effect
July 1, 2001.
