SENATE BILL REPORT

EHB 559

BYRepresentatives Appelwick, Walk, Sutherland, Barnes, Patrick, Dellwo, Heavey, Wang, Hankins, Gallagher, C. Smith, Doty, Schmidt, Betrozoff, J. Williams, Day, Brough, Cantwell, K. Wilson, Fisher, Zellinsky, Haugen, Fisch, Jacobsen, Todd, P. King, Jesernig, May, Winsley and Schoon

Extending and revising vanpool laws.

House Committe on Transportation

Rereferred House Committee on Ways & Means/Revenue

Senate Committee on Transportation

Senate Hearing Date(s):March 31, 1987

Majority Report:     Do pass.

     Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Bender, Conner, DeJarnatt, Garrett, Halsan, Nelson, Patterson, Smitherman, von Reichbauer, West.

Senate Staff:Gene Baxstrom (786-7303)

                April 1, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):April 3, 1987

Majority Report:     Do pass.

     Signed by Senators McDermott, Chairman; Bluechel, Cantu, Craswell, Fleming, Lee, McDonald, Rasmussen, Talmadge, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Stephen Rose (786-7443)

                April 6, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 3, 1987

BACKGROUND:

Chapter 166, Laws of 1980, exempted from the state motor vehicle excise tax and the state sales and use tax vans which are used regularly as ride- sharing vehicles by not less than seven persons, including the driver. Current law defines a ride-sharing vehicle as a passenger motor vehicle with a seating capacity not to exceed 15 persons, including the driver, when it is being used for commuter ride sharing or for ride sharing for the elderly and the handicapped.

In 1982 the Legislature expanded the exemption for the motor vehicle excise tax to also include 1) vans used regularly as ride-sharing vehicles by as few as five persons, including the driver, when at least three of those persons are confined to wheelchairs when riding, and 2) vehicles with a seating capacity greater than fifteen persons which otherwise qualify as ride-sharing vehicles and which are used exclusively for ride sharing for the elderly or the handicapped by not fewer than seven persons, including the driver.

In 1980 the Legislature provided that the above tax exemptions would expire January 1, 1988.  Currently, about 1,000 public transit, private nonprofit, corporate, and privately-operated vanpools utilize these tax exemptions. While public transit vans are otherwise exempted from the motor vehicle excise tax, these vehicles would be subject to the sales and use tax after January 1, 1988.

There is currently no required identification for vehicles utilizing the ride-sharing tax exemptions and it is difficult to identify that population of vehicles.  This lack of identification may enable persons to claim the exemptions when they are not entitled to do so.

Chapter 111, Laws of 1979, defined ride-sharing vehicles and prescribed their relationship in terms of insurance, for-hire vehicles and public vehicle uses.  The Industrial Insurance Act was amended at that time to exempt from workers compensation, coverage while driving employees of employers that owned ride-sharing vehicles.  It is not clear whether that exemption applies to drivers operating vanpools owned by transit agencies since those agencies exist to provide transportation services.  The Department of Labor and Industries maintains that the hours of such employment are not exempted from industrial insurance.

SUMMARY:

The January 1, 1988 expiration date for the motor vehicle excise tax and sales and use tax exemptions for ride-sharing vehicles is changed to June 30, 1995.

A special license plate is required for ride-sharing vehicles claiming an excise or sales and use tax exemption.  A $25 annual fee is imposed for the special plates, except that those vehicles otherwise qualifying for tax exempt plates (government vehicles) are exempted from the renewal fee.  Revenue from the plate fee is to be deposited into the Motor Vehicle Fund.

Commuter ride-sharing drivers are excluded from the definition of worker, under the State Industrial Insurance Act, in the course of his or her employment as a driver for the owner or lessee of the ride-sharing vehicle.

Fiscal Note:    available

Effective Date:The special license provisions take effect January 1, 1988.

Senate Committee - Testified:   TRANSPORTATION:  Larry Roediger, Department of Transportation

Senate Committee - Testified:   WAYS & MEANS:  No one