SENATE BILL REPORT

SB 5858

BYSenators 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

Senate Hearing Date(s):March 4, 1987

Majority Report:  That Substitute Senate Bill No. 5858 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Cantu, Lee, Sellar, Vognild, West.

Senate Staff:Patrick Woods (786-7430)

                  March 5, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):March 6, 1987

Majority Report:  That Substitute Senate Bill No. 5858 as recommended by Committee on Commerce & Labor be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Kreidler, Lee, McDonald, Owen, Rasmussen, Rinehart, Saling, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7715)

                  March 9, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 1987

BACKGROUND:

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

SUMMARY:

The Department of Revenue is authorized to designate county auditors in the state to act as its collecting 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.

County auditors that are designated as agents are required to transmit sales tax revenues to the State Treasurer minus a $2 fee for each transaction.  Applicants may apply within four years from the date of payment for refunds to the Department of Revenue when sales taxes are not considered to be legally due.  The Department is authorized to collect sales tax in accordance with existing administrative procedures.

Revenue received by the state treasurer is deposited in the general fund.  Fees collected by the county auditor are deposited in the county current expense fund.  A duplicate of the transmittal report of the state treasurer is forwarded to the Department of Revenue.

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

EFFECT OF PROPOSED SUBSTITUTE:

Technical changes are made clarifying the application of the act to mobile homes and mobile home dealers.  Specific requirements placed on the state treasurer and county auditor regarding crediting of funds and notification are deleted.

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: COMMERCE & LABOR:  No one

Senate Committee - Testified: WAYS & MEANS:  No one