SENATE BILL REPORT

SSB 6376

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

Senate Hearing Date(s):February 5, 1988

Majority Report:  That Substitute Senate Bill No. 6376 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Patterson, Chairman; von Reichbauer, Vice Chairman; Barr, Bender, McMullen, Metcalf, Owen, Sellar.

Senate Staff:Robin Rettew (786-7306)

                  March 4, 1988

House Committe on Transportation

AS PASSED SENATE, FEBRUARY 12, 1988

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 is extended until December, 1990.  A joint committee is created to study the Motor Vehicle Excise Tax.  The committee is composed of 15 members.  The chairperson of the House and Senate Ways and Means and Transportation shall each appoint three of their members to the joint committee.  The director of the Office of Financial Management shall appoint three staff members to serve on the joint committee.

The joint committee shall report its findings, and any recommended changes, to the House and Senate standing committees on Transportation and Ways and Means by November 1, 1988.

Appropriation:    none

Revenue:    yes

Fiscal Note:      none requested

Senate Committee - Testified: Bob Benson, Office of Financial Management; Steve Lindstrom, Washington State Transit Association; Marty Sangster, Washington Trucking Association; Joann Young, Ferry Rider Coalition; Bob Dysert, Ferry Rider Coalition

HOUSE AMENDMENT:

The temporary .1 percent Motor Vehicle Excise Tax will become permanent, without enactment of another revenue source, by July 1, 1989.

Rather than three members being appointed by the Office of Financial Management (OFM) the bill now has one each from the Office of Financial Management, Department of Transportation and Department of Licensing.