BILL REQ. #:  H-0961.1 

Read first time 01/28/2003.   Referred to Committee on Transportation.

     AN ACT Relating to providing incentives for the purchase of hybrid and fuel cell vehicles; amending RCW 82.08.020; adding a new section to chapter 82.08 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that improving our air quality is an important goal, and that a major factor affecting our air quality is emissions from older internal combustion engines. New technologies either currently in use or due to come to market in the near future promise to drastically reduce vehicle emissions. The legislature finds that an appropriate goal would be for fifty percent of the motor vehicles sold to be hybrid and fuel cell vehicles by the year 2013. In order to encourage the citizens of Washington to pursue this goal through market incentives, the legislature shall reduce sales tax on these vehicles, and dedicate the remaining portion of the state sales tax to provide for other transportation alternatives.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Fuel cell motor vehicle" means a motor vehicle powered by an electrochemical engine that converts the chemical energy of a fuel, such as hydrogen, and an oxidant, such as oxygen, directly into electricity.
     (2) "Hybrid motor vehicle" means a motor vehicle that uses propulsion units powered by both electricity and gasoline.

Sec. 3   RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each amended to read as follows:
     (1)(a) There is levied and there shall be collected a tax on each retail sale in this state.
     (b) The tax is equal to three and two-tenths percent of the selling price for sales of hybrid motor vehicles and fuel cell motor vehicles. Revenue collected under this subsection (1)(b) must be deposited in the multimodal transportation account created in RCW 47.66.070.
     (c) The tax is equal to six and five-tenths percent of the selling price for other sales.
     (2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.
     (3) The taxes imposed under this chapter shall apply to successive retail sales of the same property.
     (4) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.