FINAL BILL REPORT

SSB 5858

                                   C 89 L 87

BYSenate Committee on Commerce & Labor (originally sponsored by Senators Johnson, Warnke, Talmadge, Stratton, Bottiger, McDermott, Bailey, von Reichbauer, Cantu, Lee and McDonald)

Adopting procedures for the collection of the sales tax on the sale of mobile homes by dealers or selling agents.

Senate Committee on Commerce & Labor and Committee on Ways & Means

House Committe on Housing

SYNOPSIS AS ENACTED

BACKGROUND:

The Department of Revenue requires the majority of mobile home dealers to submit retail sales taxes on a monthly basis to the Department.  Periodically, due to business failures, the Department has been unable to collect sales taxes that are owed by mobile home dealers.

SUMMARY:

The Department of Revenue is authorized to designate county auditors to act as its collection agents for sales tax on mobile homes.  A designated agent is required to collect the sales tax on mobile homes at the time of transfer of ownership from a mobile home dealer to the new owner.  An exception is made for an applicant having a written statement from the Department of Revenue indicating that sales tax is not due on that transaction.  It is the duty of an applicant to disclose the selling price of the mobile home.

Designated agents are required to transmit sales tax revenues to the State Treasurer less a $2 processing fee for each transaction.  Applications for refunds of taxes not considered legally due may be made within four years of the date of payment.  The Department is authorized to collect sales tax in accordance with existing administrative procedures.

The Director of the Department of Licensing is also authorized to act as a designated agent for the collection of sales tax.

VOTES ON FINAL PASSAGE:

      Senate    45     1

      House 98   0

EFFECTIVE:April 20, 1987