BILL REQ. #:  H-3759.1 

Read first time 01/14/2004.   Referred to Committee on Finance.

     AN ACT Relating to business and occupation tax for wholesale sales of new motor vehicles; amending RCW 82.04.422; and declaring an emergency.

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

Sec. 1   RCW 82.04.422 and 2001 c 258 s 1 are each amended 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)) making sales of new motor vehicles of the same make. This exemption does not apply to amounts derived by a manufacturer, distributor, or factory branch as defined in chapter 46.70 RCW.

NEW SECTION.  Sec. 2   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 immediately.