SENATE BILL REPORT

SHB 1860

BYHouse Committee on Transportation (originally sponsored by Representatives Betrozoff, Walk, Schmidt, Patrick, S. Wilson, Ferguson, Silver and Miller)

Penalizing fraudulent failure to register vehicles, boats, or airplanes.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 24, 1988

Majority Report:  Do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Bender, DeJarnatt, Kiskaddon, McMullen, Metcalf, Owen, Sellar.

Senate Staff:Cathy Mayo (786-7304)

                  February 26, 1988

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 24, 1988

BACKGROUND:

Failure to renew your vehicle registration is a traffic infraction and failure to make the initial registration is a misdemeanor.  The minimum fine is $165, no part of which may be suspended or deferred.  Failure to renew or to initially register a boat is a misdemeanor, with a fine not to exceed $100/vessel for the first offense, $200/vessel for the second offense, and $400/vessel for the third and subsequent offenses.  Failure to renew or initially register an airplane is also a misdemeanor with a fine not to exceed $100.

The Department of Revenue has the authority to collect unpaid sales/use tax and motor vehicle excise tax relating to motor vehicles, aircraft and boats.  The department may assess a nine percent penalty upon assessment of the unpaid tax, 10 percent penalty upon a tax warrant being issued, and an additional 50 percent penalty if the department can prove the individual intended to evade the tax.

License fraud is a serious problem in this state.  In King County alone, one trooper working license fraud part-time referred cases to the department which resulted in collection of $411,674 and an additional $300,560 on departmental appeal.  A stronger criminal sanction may help in deterring license fraud and enhance collection and enforcement actions.

SUMMARY:

The fine for failing to initially register a motor vehicle is increased to $330, no part of which may be suspended or deferred.  This provision takes effect September 1, 1988.  All penalties imposed by the department associated with delinquent motor vehicle excise taxes are waived until September 1, 1988 in order to encourage voluntary compliance with the motor vehicle registration laws of this state.

All current and delinquent motor vehicle excise tax due for failing to initially register a motor vehicle, and, beginning September 1, 1988, all penalties imposed are placed in the State Patrol Highway Account.

The State Patrol is directed to develop a program to encourage residents to provide information on initial vehicle registration violators.  The program shall include payment of $50 to any person providing information that leads to the conviction of a person for violating initial registration requirements.

Appropriation:    none

Revenue:    yes

Fiscal Note:      none requested

Senate Committee - Testified: Capt. Rick Jensen, WSP (for)