BILL REQ. #:  S-3902.1 

Read first time 01/10/2006.   Referred to Committee on Transportation.

     AN ACT Relating to uniform administration of locally imposed motor vehicle excise taxes; amending RCW 81.100.060, 82.44.060, 82.44.065, 82.44.090, 82.44.100, and 82.44.120; adding new sections to chapter 82.44 RCW; and repealing RCW 82.44.022, 82.44.023, 82.44.025, 82.44.080, 82.44.130, 82.44.155, 82.44.157, 82.44.160, and 82.44.170.

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) For the purpose of determining any locally imposed motor vehicle excise tax, the value of a truck-type power or trailing unit shall be the latest purchase price 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 last sale. The latest purchase year shall be considered the first year of service.

Sec. 2   RCW 81.100.060 and 2002 c 56 s 411 are each amended to read as follows:
     A county with a population of one million or more and a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, having within their boundaries existing or planned high-occupancy vehicle lanes on the state highway system, or a regional transportation investment district for capital improvements, but only to the extent that the surcharge has not already been imposed by the county, may, with voter approval, impose a local surcharge of not more than three-tenths of one percent of the value on vehicles registered to a person residing within the county and not more than 13.64 percent on the state sales and use taxes paid under the rate in RCW 82.08.020(2) on retail car rentals within the county or investment district. A county may impose the surcharge only to the extent that it has not been imposed by the district. No surcharge may be imposed on vehicles licensed under RCW 46.16.070 except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16.079, 46.16.085, or 46.16.090.
     Counties or investment districts imposing a tax under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the state department of licensing, and department of revenue, as appropriate, which shall deduct an amount, as provided by contract, for administration and collection expenses incurred by the department. All administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall, insofar as they are applicable to motor vehicle excise taxes, be applicable to surcharges imposed under this section. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW shall, insofar as they are applicable to state sales and use taxes, be applicable to surcharges imposed under this section.
     If the tax authorized in RCW 81.100.030 is also imposed, the total proceeds from tax sources imposed under this section and RCW 81.100.030 each year shall not exceed the maximum amount which could be collected under this section.
     Motor vehicles subject to the local surcharge authorized in this section shall be administered in accordance with section 1 of this act if the surcharge is first imposed on or after the effective date of this act.

Sec. 3   RCW 82.44.060 and 1990 c 42 s 304 are each amended to read as follows:
     ((The)) Any locally imposed excise tax ((hereby imposed)) shall be due and payable to the department or its agents at the time of registration of a motor vehicle. Whenever an application is made to the department or its agents for a license for a motor vehicle there shall be collected, in addition to the amount of the license fee or renewal license fee, the amount of ((the)) any locally imposed excise tax ((imposed by this chapter)), and no dealer's license or license plates, and no license or license plates for a motor vehicle shall be issued unless such tax is paid in full. ((The excise tax hereby imposed)) Locally imposed excise taxes shall be collected for each registration year. ((The)) Any locally imposed excise tax upon a motor vehicle licensed for the first time in this state shall be levied for one full registration year commencing on the date of the calendar year designated by the department and ending on the same date of the next succeeding calendar year. For vehicles registered under chapter 46.87 RCW, proportional registration, and for vehicle dealer plates issued under chapter 46.70 RCW, the registration year is the period provided in those chapters((: PROVIDED, That)). However, the tax shall in no case be less than two dollars except for proportionally registered vehicles.
     A motor vehicle shall be deemed licensed for the first time in this state when such vehicle was not previously licensed by this state for the registration year immediately preceding the registration year in which the application for license is made or when the vehicle has been registered in another jurisdiction subsequent to any prior registration in this state.
     No additional tax shall be imposed under this chapter upon any vehicle upon the transfer of ownership thereof if the tax imposed with respect to such vehicle has already been paid for the registration year or fraction of a registration year in which transfer of ownership occurs.

Sec. 4   RCW 82.44.065 and 1990 c 42 s 305 are each amended to read as follows:
     If the department determines a value for a motor vehicle ((under RCW 82.44.041)) equivalent to a manufacturer's base suggested retail price or the value of a truck-type power or trailing unit under ((RCW 82.44.041(2))) section 1 of this act, any person who pays ((the)) a locally imposed tax ((under this chapter)) for that vehicle may appeal the valuation to the department under chapter 34.05 RCW. If the taxpayer is successful on appeal, the department shall refund the excess tax in the manner provided in RCW 82.44.120.

Sec. 5   RCW 82.44.090 and 1961 c 15 s 82.44.090 are each amended to read as follows:
     It shall be unlawful for the county auditor or any other person to issue a dealer's license or dealer's license plates or a license or identification plates with respect to any motor vehicle without collecting, with the required license fee, the amount of ((the)) any locally imposed motor vehicle excise tax due ((thereon under the provisions of this chapter)). Any violation of this section shall constitute a gross misdemeanor.

Sec. 6   RCW 82.44.100 and 1961 c 15 s 82.44.100 are each amended to read as follows:
     The county auditor shall give to each person paying ((the)) a locally imposed motor vehicle excise tax a receipt therefor which shall sufficiently designate and identify the vehicle with respect to which the tax is paid. ((Such)) The receipt may be incorporated in the receipt given for the motor vehicle license fee or dealer's license fee paid.

Sec. 7   RCW 82.44.120 and 2003 c 53 s 403 are each amended to read as follows:
     (1) Whenever any person has paid a motor vehicle license fee, and together therewith has paid ((an)) a locally imposed excise tax ((imposed under the provisions of this chapter)), and the director determines that the payor is entitled to a refund of the entire amount of the license fee as provided by law, then the payor shall also be entitled to a refund of the entire excise tax collected under the provisions of this chapter. In case the director determines that any person is entitled to a refund of only a part of the license fee so paid, the payor shall be entitled to a refund of the difference, if any, between the excise tax collected and that which should have been collected.
     (2) In case no claim is to be made for the refund of the license fee or any part thereof, but claim is made by any person that he or she has paid an erroneously excessive amount of excise tax, the department shall determine in the manner generally provided in this chapter the amount of such excess, if any, that has been paid and shall certify to the state treasurer that such person is entitled to a refund in such amount.
     (3) In any case where due to error, a person has been required to pay an excise tax pursuant to this chapter and a vehicle license fee pursuant to Title 46 RCW which amounts to an overpayment of ten dollars or more, such person shall be entitled to a refund of the entire amount of such overpayment, regardless of whether or not a refund of the overpayment has been requested. Conversely, if due to error, the department or its agents has failed to collect the full amount of the license fee and excise tax due, which underpayment is in the amount of ten dollars or more, the department shall charge and collect such additional amount as will constitute full payment of the tax.
     (4) Any claim for refund of an erroneously excessive amount of excise tax or overpayment of excise tax with a motor vehicle license fee must be filed with the director within three years after the claimed erroneous payment was made.
     (5) If the department approves the claim it shall notify the state treasurer to that effect, and the treasurer shall make such approved refunds from the general fund and shall mail or deliver the same to the person entitled thereto.
     (6) Any person making any false statement under which he or she obtains any amount of refund to which he or she is not entitled under the provisions of this section is guilty of a gross misdemeanor.
     (7) Before a local government subject to this chapter may impose a motor vehicle excise tax, the local government shall contract with the department for reimbursement for any refunds paid to a person by the treasurer.

NEW SECTION.  Sec. 8   A new section is added to chapter 82.44 RCW to read as follows:
     Before a local government subject to this chapter may impose a motor vehicle excise tax, the local government must contract with the department for the collection of the tax. The department may charge a reasonable amount, not to exceed one percent of tax collections, for the administration and collection of the tax.

NEW SECTION.  Sec. 9   The following acts or parts of acts are each repealed:
     (1) RCW 82.44.022 (Credit on personal-use motor vehicle) and 1998 c 321 s 2;
     (2) RCW 82.44.023 (Exemption -- Rental cars -- Alteration of license plate month and year tabs -- Rules -- Taxes upon sale) and 1998 c 321 s 38, 1998 c 145 s 1, 1994 c 227 s 3, & 1992 c 194 s 8;
     (3) RCW 82.44.025 (Exemption -- Vehicles of Taipei Economic and Cultural Office) and 1998 c 321 s 39 & 1996 c 139 s 3;
     (4) RCW 82.44.080 (Tax additional) and 1961 c 15 s 82.44.080;
     (5) RCW 82.44.130 (Ad valorem taxation barred) and 1961 c 15 s 82.44.130;
     (6) RCW 82.44.155 (City police and fire protection assistance account -- Distribution to cities and towns -- Apportionment) and 1998 c 321 s 40, 1993 c 492 s 254, 1991 c 199 s 223, & 1990 c 42 s 309;
     (7) RCW 82.44.157 (Transfer of funds pursuant to government service agreement) and 1994 c 266 s 14;
     (8) RCW 82.44.160 (Distribution to municipal research council) and 1999 c 309 s 931 & 1995 c 28 s 1; and
     (9) RCW 82.44.170 (Computation of excise taxes when commingled with licensing fees) and 1990 c 42 s 311, 1987 c 244 s 56, & 1985 c 380 s 22.