BILL REQ. #: H-4501.1

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HOUSE BILL 3202
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State of Washington

59th Legislature

2006 Regular Session

By Representatives Nixon, Dunn, Schindler, Talcott, Hinkle, Cox, Rodne, McCune, McDonald and Anderson

Read first time 01/25/2006. Referred to Committee on Transportation.

AN ACT Relating to establishing a lower, more fair, and more accurate vehicle valuation schedule for the purpose of calculating motor vehicle excise taxes; and adding a new section to chapter 82.44 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.44 RCW to read as follows:
     (1) Any taxing district imposing a motor vehicle excise tax must use the depreciation schedule set forth in this section. The taxable value equals the product of a percentage based on a vehicle's year of service as provided in subsection (2) of this section, and the market value of the vehicle.
     (2) For the purpose of determining the tax due under this chapter, the value of a truck-type power or trailing unit, or motor vehicle, including a passenger vehicle, motorcycle, motor home, sport-utility vehicle, or light-duty truck shall be the market value of the vehicle, excluding applicable federal excise taxes, state and local sales or use taxes, transportation or shipping costs, or preparatory or delivery costs, multiplied by the following percentage based on year of service of the vehicle since its most recent sale. The year in which a purchase occurs shall be considered the first year of service.

Year of Service		Percentage
	1	100%
	2	75%
	3	60%
	4	50%
	5	40%
	6	30%
	7	20%
	8	10%
	9 and over	5%

     (3) The reissuance of title and registration for a truck-type power or trailing unit or motor vehicle, including a passenger vehicle, motorcycle, sport-utility vehicle, or a light-duty truck shall be treated as a sale, and the latest purchase price of the truck-type power or trailing unit or motor vehicle, including a passenger vehicle, motorcycle, sport-utility vehicle, or a light-duty truck at that time, as determined by the department from such information as may be available, shall be considered its base value.
     (4) If the purchase price is unavailable or otherwise unascertainable or the reissuance of title and registration is the result of a gift or inheritance, the department shall determine a value equivalent to the latest purchase price, by using any information that may be available, including any guidebook, report, or compendium of recognized standing in the automotive industry or the selling price and year of sale of the vehicle. The department may use an appraisal by the county assessor. In valuing a vehicle for which the current value or selling price is not indicative of the value of similar vehicles of the same year and model, the department shall establish a value that more closely represents the average value of similar vehicles of the same year and model.
     (5) For purposes of this chapter, "value" does not mean value attributable to modifications of a motor vehicle and equipment that are designed to facilitate the use or operation of the motor vehicle by a disabled person.
     (6) For purposes of this section, "market value" means the latest purchase price.

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