AN ACT Relating to specifying the documentation that must be provided to determine when sales tax applies to the sale of a motor vehicle to an enrolled tribal member; adding a new section to chapter 82.08 RCW; and prescribing penalties.

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

NEW SECTION.  Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

(1) The tax imposed in this chapter applies when a retail vehicle dealer makes a sale of a vehicle to an enrolled member of a federally recognized Indian tribe located in the state, unless the seller:

(a) Is provided the following by the buyer:

(i) The buyer's currently valid tribal membership or citizenship card;

(ii) The buyer's currently valid certificate of tribal enrollment; or

(iii) A letter signed by a tribal official confirming the buyer's current tribal membership status; and

(b)(i) Delivers the vehicle to the buyer at a location on a reservation of a federally recognized Indian tribe. The seller must document the delivery by doing the following:

(A) Entering the delivery location into an online system maintained by the department and recording the result; and

(B) Completing a declaration signed by the seller attesting that delivery was made to that location.

(ii) No other proof of delivery will be accepted in place of or required in addition to the requirements in (b)(i)(A) and (B) of this subsection.

(2) The seller must retain copies of the documentation required under (1) of this section for the period required in RCW 82.32.070.

(3) The department may only require a seller to retain the documentation required under subsection (1) of this section; however, buyers claiming an exemption under this section must, upon request from the department, provide to the department records necessary to verify the buyer's eligibility for the exemption provided in this section.

(4)(a) Any person making fraudulent statements, which includes the offer of fraudulent identification or fraudulently procured identification to a seller, in order to purchase a passenger vehicle without paying retail sales tax under this section is guilty of perjury under chapter 9A.72 RCW.

(b) Any person making a tax exempt purchase under this section by displaying proof of identification not his or her own, or counterfeit identification, with intent to violate the provisions of this section, is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to one hundred percent of the state and local sales tax due on such purchase. In addition, the person is liable for any penalties and interest imposed under chapter 82.32 RCW.

(c) Any seller that makes tax-exempt sales under this section and who has actual knowledge that the buyer's documentation required by subsection (1) of this section is fraudulent is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one thousand dollars or one hundred percent of the state and local sales tax due on such sales. In addition, both the buyer and the seller are liable for any penalties and interest imposed under chapter 82.32 RCW.

(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Passenger vehicle" means a passenger car, as defined in RCW 46.04.382.

(b) "Retail vehicle dealer" means the same as in RCW 46.70.011.

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