BILL REQ. #: S-4005.1
| State of Washington | 60th Legislature | 2008 Regular Session |
Read first time 01/25/08. Referred to Committee on Ways & Means.
AN ACT Relating to exemption of car sharing from retail sales and use tax; amending RCW 81.104.170; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.14 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 car sharing is an
important element of transportation demand management that contributes
to commute trip reduction and results in fewer vehicle miles traveled
on streets and highways. The legislature intends to provide tax
incentives to car sharing organizations for the purpose of encouraging
the availability and use of car sharing as an element of transportation
demand management.
NEW SECTION. Sec. 2 A new section is added to chapter 82.08 RCW
to read as follows:
The tax levied by RCW 82.08.020(1) does not apply to the use of
vehicles provided by a nonprofit car sharing entity or car sharing
business. For purposes of this section, "car sharing business" means
a business that provides car sharing, as defined in RCW 82.70.010,
under the following conditions:
(1) More than fifty percent of the sales of the business consist of
car sharing primarily for hourly use;
(2) Members reserve and access vehicles through a self-service,
fully automated reservation system, and a separate written agreement is
not required each time a member reserves and uses a vehicle;
(3) A majority of member reservations during the preceding calendar
year were for periods of eight hours or less;
(4) Members pay a membership fee that is separate from the hourly
charge for use of a vehicle;
(5) The cost of insurance, fuel, and vehicle maintenance is
included in either the membership fee or the hourly charge for use of
a vehicle; and
(6) Vehicles are accessed by members at dispersed locations that
are not owned or controlled by the car sharing business, and the median
number of vehicles at a location is two or fewer.
NEW SECTION. Sec. 3 A new section is added to chapter 82.12 RCW
to read as follows:
The tax imposed by RCW 82.12.020 does not apply to the use of
vehicles for car sharing provided by a nonprofit car sharing entity or
a car sharing business. For purposes of this section, "car sharing
business" means a business that provides car sharing, as defined in RCW
82.70.010, under the following conditions:
(1) More than fifty percent of the sales of the business consist of
car sharing primarily for hourly use;
(2) Members reserve and access vehicles through a self-service,
fully automated reservation system, and a separate written agreement is
not required each time a member reserves and uses a vehicle;
(3) A majority of member reservations during the preceding calendar
year were for periods of eight hours or less;
(4) Members pay a membership fee that is separate from the hourly
charge for use of a vehicle;
(5) The cost of insurance, fuel, and vehicle maintenance is
included in either the membership fee or the hourly charge for use of
a vehicle; and
(6) Vehicles are accessed by members at dispersed locations that
are not owned or controlled by the car sharing business, and the median
number of vehicles at a location is two or fewer.
NEW SECTION. Sec. 4 A new section is added to chapter 82.14 RCW
to read as follows:
The taxes authorized by this chapter do not apply to the use of
vehicles provided by a nonprofit car sharing entity or car sharing
business. For purposes of this section, "car sharing business" means
a business that provides car sharing, as defined in RCW 82.70.010,
under the following conditions:
(1) More than fifty percent of the sales of the business consist of
car sharing primarily for hourly use;
(2) Members reserve and access vehicles through a self-service,
fully automated reservation system, and a separate written agreement is
not required each time a member reserves and uses a vehicle;
(3) A majority of member reservations during the preceding calendar
year were for periods of eight hours or less;
(4) Members pay a membership fee that is separate from the hourly
charge for use of a vehicle;
(5) The cost of insurance, fuel, and vehicle maintenance is
included in either the membership fee or the hourly charge for use of
a vehicle; and
(6) Vehicles are accessed by members at dispersed locations that
are not owned or controlled by the car sharing business, and the median
number of vehicles at a location is two or fewer.
Sec. 5 RCW 81.104.170 and 1997 c 450 s 5 are each amended to read
as follows:
Cities that operate transit systems, county transportation
authorities, metropolitan municipal corporations, public transportation
benefit areas, and regional transit authorities may submit an
authorizing proposition to the voters and if approved by a majority of
persons voting, fix and impose a sales and use tax in accordance with
the terms of this chapter, solely for the purpose of providing high
capacity transportation service.
The tax authorized pursuant to this section shall be in addition to
the tax authorized by RCW 82.14.030 and shall be collected from those
persons who are taxable by the state pursuant to chapters 82.08 and
82.12 RCW upon the occurrence of any taxable event within the taxing
district. The maximum rate of such tax shall be approved by the voters
and shall not exceed one percent of the selling price (in the case of
a sales tax) or value of the article used (in the case of a use tax).
The maximum rate of such tax that may be imposed shall not exceed
nine-tenths of one percent in any county that imposes a tax under RCW
82.14.340, or within a regional transit authority if any county within
the authority imposes a tax under RCW 82.14.340. The exemptions in RCW
82.08.820 and 82.12.820 are for the state portion of the sales and use
tax and do not extend to the tax authorized in this section. The tax
authorized in this section does not apply to the use of vehicles
provided by a car sharing business under sections 2, 3, and 4 of this
act.