FINAL BILL REPORT

SSB 6376

                                  C 191 L 88

BYSenate Committee on Transportation (originally sponsored by Senators Nelson, McMullen, Metcalf and Bender; by request of Governor)

Extending one element of the motor vehicle excise tax.

Senate Committee on Transportation

House Committe on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

A temporary .1 percent increase in the Motor Vehicle Excise Tax was passed last session to help fund the ferry system operating budget through this biennium.  The .1 percent will generate about $21 million in 1987-89.  The temporary rate increase is scheduled to sunset in December 1989.

Without this temporary increase, the ferry system would have required, once again, a transfer from the Capital Construction Account to the operating budget in order to maintain a fare/subsidy ratio of 70/30 percent.

SUMMARY:

The .1 percent Motor Vehicle Excise Tax increase for the marine operating budget is extended from December 1989 to December 1990.  A joint committee composed of 15 members is created to study the Motor Vehicle Excise Tax.  The chairperson of the House and Senate Ways and Means Committees, and the chairperson of the House and Senate Transportation Committees each appoint three members to the committee.  The remaining three members include individuals from the Departments of Licensing, Transportation and from the Office of Financial Management.

VOTES ON FINAL PASSAGE:

      Senate    27    20

      House 72  25 (House amended)

      Senate            (Senate concurred in part)

      House 76  20 (House receded)

      Senate    25    23 (Senate concurred)

EFFECTIVE:June 9, 1988