SENATE BILL REPORT
SB 6218


This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported By Senate Committee On:
Transportation, February 06, 2008
Ways & Means, February 27, 2008

Title: An act relating to historic vessels.

Brief Description: Concerning historic vessels.

Sponsors: Senators Hatfield and Murray.

Brief History:

Committee Activity: Transportation: 2/06/08 [DP-WM].

Ways & Means: 2/12/08, 2/27/08 [DPS, w/oRec].


SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass and be referred to Committee on Ways & Means.Signed by Senators Haugen, Chair; Marr, Vice Chair; Swecker, Ranking Minority Member; Benton, Delvin, Eide, Holmquist, Kauffman, Kilmer, King and Spanel.

Staff: Janice Baumgardt (786-7319)


SENATE COMMITTEE ON WAYS & MEANS

Majority Report: That Substitute Senate Bill No. 6218 be substituted therefor, and the substitute bill do pass.Signed by Senators Prentice, Chair; Zarelli, Ranking Minority Member; Brandland, Hatfield, Hewitt, Hobbs, Honeyford, Keiser, Parlette, Rasmussen, Regala and Schoesler.

Minority Report: That it be referred without recommendation.Signed by Senators Fraser, Vice Chair, Capital Budget Chair; Kohl-Welles and Rockefeller.

Staff: Dean Carlson (786-7305)

Background: Under current law, certain vessels are subject to an excise tax of one-half of one percent of the fair market value of a vessel for the privilege of using it on the waters of this state.
The Department of Licensing (DOL) issues a decal for each vessel upon receipt of an application and registration fee.

Summary of Bill (Recommended Substitute): Historic vessels are defined as any vessel at least 60 years old and are only used for participation in club activities, exhibitions, tours, parades, and occasional pleasure boating, but does not include vessels that are used for commercial or rental purposes.

The excise tax for historic vessels is reduced to one-quarter of 1 percent of the fair market value from one-half of 1 percent. DOL is directed to create and issue a separate decal for historic vessels.

EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (Recommended Substitute): The age for determining what is a historic vessel is change from 40 years old to 60 years old. The provision that a boat licensed as a historic vessel can not be used for commercial or rental purposes is added.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Original Bill (Transportation): PRO: This bill will give a tax break to those who own older vessels and thereby support recreational boating.

Persons Testifying (Transportation): PRO: Senator Hatfield, prime sponsor; Jim King, Recreational Boating Association of Washington; Steve Greaves, Recreational Boating Association of Washington.

Staff Summary of Public Testimony on Substitute Bill (Ways & Means): PRO: If classic cars get a break on their licensing fees then so should classic boats. The wooden boat people are really in favor of this. These old boats really require a lot of investment to keep them going.

Persons Testifying (Ways & Means): Senator Hatfield, prime sponsor; James King, Recreational Boating Association of Washington.