SENATE BILL REPORT

SB 5295

As of January 28, 2004

Title: An act relating to a fee on studded tires.

Brief Description: Imposing a fee on studded tires.

Sponsors: Senators Horn, Haugen, Kline and Schmidt.

Brief History:

Committee Activity: Highways & Transportation: 1/23/03, 3/5/03 [DPS, DNP]; 1/28/04.

SENATE COMMITTEE ON HIGHWAYS & TRANSPORTATION

Staff: Greg Doss (786-7341)

Background: The Legislature and the Governor formed the Blue Ribbon Commission on Transportation in 1998 to assess the local, regional, and state transportation system; ensure that current and future money is spent wisely; make the system more accountable and predictable; and prepare a 20-year plan for funding and investing in the transportation system.

The commission made 18 recommendations to the Governor and the Legislature. Recommendation Five outlined several ways to invest in maintenance, preservation, and improvement of the entire transportation system so that transportation benchmarks can be achieved. The commission concluded that one method for preserving the transportation system was to phase out studded tires or establish a surcharge to recognize the cost of studded tire damage to the roadways.

In 1999 the Legislature enacted a bill requiring wholesalers to sell only lightweight studs for tires. Starting January 1, 2000, wholesalers could sell only lightweight studded tires to tire dealers in Washington. Tire dealers could sell heavier metal studs only until July 1, 2001.

Summary of Second Substitute Bill: Beginning July 1, 2004, a fee of $15 per tire is levied on the sale of each lightweight studded tire. The tire buyer must pay the fee to the seller of the tires and the seller must send the fees to the Department of Revenue. The fees must be deposited in the motor vehicle fund.

Second Substitute Bill Compared to Original Bill: Beginning July 1, 2003, a fee of $15 per tire is levied on the sale of each lightweight studded tire. The tire buyer must pay the fee to the seller of the tires and the seller must send the fees to the Department of Revenue. The fees must be deposited in the motor vehicle fund.

Appropriation: None.

Fiscal Note: Requested on January 23, 2004.

Effective Date: The bill contains an emergency clause and takes effect on July 1, 2004.