Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Transportation Committee

HB 2357

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.

Brief Summary of Bill

Allows for semiannual or quarterly payment plans for certain motor vehicle excise tax assessments that are equal to or greater than $200 and due on or after January 1, 2019.

Background:

A Regional Transit Authority (RTA) is authorized to use its tax revenues to develop and operate a high capacity transportation system. There is currently one RTA, Sound Transit, which operates light rail, commuter rail service, and express bus service. The boundaries of the Sound Transit district generally follow the urban growth boundaries of King, Pierce, and Snohomish counties.

After the approval of the most recent system expansion plan in 2016, Sound Transit imposes the following taxes within the boundaries of the Sound Transit district:

a sales and use tax of 1.4 percent;
a motor vehicle excise tax (MVET) of 1.1 percent;
a property tax of 25 cents per $1,000 of assessed valuation; and
a rental car sales and use tax of 0.8 percent.

Summary of Bill:

The registered owner of a vehicle subject to an MVET imposed by certain regional transit authorities, currently limited to Sound Transit, may enter into a semiannual or quarterly payment plans for MVET assessments that are equal to or greater than $200 and due on or after January 1, 2019.

A $5 service fee must be assessed for each payment under a payment plan.

The Department of Licensing, the Washington State Patrol, and Sound Transit are required to provide a report on implementation of, and potential improvements to, the payment plan system by November 15, 2020.