FINAL BILL REPORT

SHB 2215

C 368 L 03

Synopsis as Enacted

Brief Description: Allowing car dealers to charge documentary service fees.

Sponsors: By House Committee on Transportation (originally sponsored by Representatives Murray and Simpson).

House Committee on Transportation

Senate Committee on Highways & Transportation

Background:

Licensed vehicle dealers are required to collect a variety of government taxes and fees. Most vehicle dealers also license and title the vehicles they sell. Current law prohibits vehicle dealers from charging any kind of administrative or document preparation fee for performing tax collection, licensing and titling activities.

Summary:

Vehicle dealers are authorized to charge a documentary service fee of up to $35 per vehicle sale or lease. In order to charge the document service fee, vehicle dealers must observe the following conditions:

       •    The service fee must be disclosed in writing before the execution of a purchase and sale or lease agreement.

       •    The service fee is not represented to the buyer as a fee or charge required by the state to be paid by either the dealer or the buyer.

       •    The service fee must be separately designated from the selling price of the vehicle and from any other taxes, fees or charges.

       •    Dealers must disclose in any advertisement that a document service fee of up to $35 may be added to the sale price of a vehicle.

Votes on Final Passage:

House 66  31

Senate 42  7    (Senate amended)

House 65  32  (House concurred)

Effective: The date on which Engrossed Substitute House Bill 2231 takes effect.