HOUSE BILL REPORT

SSB 6376

BYSenate Committee on Transportation (originally sponsored by Senators Nelson, McMullen, Metcalf and Bender; by request of Governor)

Extending one element of the motor vehicle excise tax.

House Committe on Transportation

Majority Report:  Do pass with amendments.  (20)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Day, Doty, Fisher, Fox, Gallagher, Hankins, Haugen, Jacobsen, Jones, Meyers, Prince, Schmidt, Smith, D. Sommers, Sutherland, Vekich, J. Williams and S. Wilson.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Betrozoff, Heavey, Kremen and Patrick.

House Staff:Gene Schlatter (786-7316)

AS PASSED HOUSE MARCH 8, 1988

BACKGROUND:

A temporary .1 percent increase in the motor vehicle excise tax (MVET) was passed last session to help fund the Ferry System operating budget through this biennium.  The .1 percent will generate about $21 million in 1987-89.  The temporary rate increase is scheduled to sunset in December 1989.

Without this temporary increase the Ferry System would have required, once again, a transfer from the Capital Construction Account to the operating budget in order to maintain a fare/subsidy ratio of 70/30 percent.

SUMMARY:

The .1 percent motor vehicle excise tax increase is extended until December 1990.  A joint committee is created to study the MVET.  The committee is composed of 15 members.  The chairpersons of the House and Senate Ways and Means and Transportation Committees shall each appoint three of their members to the joint committee.  The Directors of the Office of Financial Management and the Department of Licensing (DOL) and the Secretary of the Department of Transportation (DOT) shall each appoint a member.

The joint committee shall report its findings, and any recommended changes, to the House and Senate Standing Committees on Transportation and Ways and Means by November 1, 1988.  The committee terminates in November 1988.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Bob Benson, Office of Financial Management; Martin Sangster, Washington Trucking Association; Harold Parker, Marine Division, Department of Transportation; Jo Ann Young, Ferry Riders Coalition; Ben Dysart, Ferry Riders Coalition.

House Committee - Testified Against:      Martin Sangster, Washington Trucking Association.

House Committee - Testimony For:    Identified revenues for the marine operating budget are provided for the 1989-91 biennium.  Without extension of the MVET, transfers from capital to operating would probably become necessary again.

House Committee - Testimony Against:      The MVET is already too high and other sources of revenue should be made available for the marine operating budget.