SENATE BILL REPORT

HB 2660

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 of Second Reading

Title: An act relating to transportation revenue.

Brief Description: Addressing transportation revenue.

Sponsors: Representatives Clibborn, Ryu, Moeller, Finn, Billig, Eddy, Fitzgibbon and Moscoso; by request of Governor Gregoire.

Brief History: Passed House: 3/08/12, 56-42.

Committee Activity:

Staff: Amanda Cecil (786-7429)

Background: Funding for statewide transportation comes from a variety of taxes and fees that are imposed on drivers, vehicles and fuels. The largest single source of transportation revenue comes from the state's motor vehicle fuel tax of $0.375 per gallon of gasoline and diesel.

Vehicle dealers may charge a documentary service fee to recover administrative costs. Administrative costs include collecting taxes and fees; verifying and clearing titles; transferring titles; and perfecting, satisfying, or releasing liens. A dealer can charge the documentary service fee under the following conditions: the dealer must disclose the fee in writing; the dealer must disclose in writing that the fee is negotiable; the dealer cannot represent that the fee is required by the state; the dealer must separately designate the fee from the selling price and other charges; and the dealer must disclose the fee in advertisements as an addition to the selling price. The current maximum document fee is up to $150 per vehicle sale or lease until June 30, 2014. On July 1, 2014, the fee reverts to a maximum of $50.

Summary of Bill: The following fee increases are made:

Document

Current Fee

Proposed Fee

Proposed Increase

Abstract of Driver's Record (ADR)

$10.00

$13.00

$3.00

Certificate of Ownership (Title) Application

$5.00

$15.00

$10.00

Original Issue License Plates (Per Plate)

$0

$10.00

$10.00

Original Issue Motorcycle Plates

$0

$4.00

$4.00

Motorcycle Replacement Plates

$2.00

$4.00

$2.00

Vehicle Dealer Original License

$750.00

$975.00

$225.00

Vehicle Dealer License Renewal License

$250.00

$325.00

$75.00

Late Transfer Penalty

$25-100

$50-$125

$25

Electric Vehicle Fee

$0

$100.00

$100.00

The vehicle dealer's documentary service fee reversion date of June 30, 2014, is removed and the fee is permanently set at $150.

A public transportation grant program account is created in the state treasury until July 1, 2015, at which point the account expires.

Various technical corrections are made resulting from the 2010 and 2011 vehicle registration statutes recodification.

Appropriation: None.

Fiscal Note: Available.

[OFM requested ten-year cost projection pursuant to I-960.]

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on October 1, 2012