SENATE BILL REPORT

SB 5242

BYSenators McDermott, McDonald, Gaspard and Hayner; by request of Department of Revenue

Modifying conveyance tax collection procedures.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 29, 1987

Senate Staff:William Bafus (786-7437)

AS OF JANUARY 27, 1987

BACKGROUND:

At present, the Department of Revenue is responsible for collection of the conveyance tax, and for printing, distributing and accounting for conveyance tax stamps and receipts.  The Department estimates that this activity costs approximately $46,000 per fiscal year, including the salaries and benefits of 1.5 FTE employees plus the costs associated with obtaining and distributing the conveyance tax stamps.

SUMMARY:

Responsibility for collection of the conveyance tax is transferred to the county treasurers.  The option of incorporating collection of the conveyance tax and the real estate excise tax into the same form and process is provided.  Sections of RCW 82.20 relating to conveyance tax stamps are repealed.  A process for redemption of outstanding conveyance tax stamps is provided, with a deadline of July 1, 1988.

Revenue:    yes

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect on July 1, 1987.