SENATE BILL REPORT

SB 6558

BYSenators Deccio, Bauer and Johnson

Prohibiting the collection of underpayments of motor vehicle excise taxes caused by department error.

Senate Committee on Transportation

Senate Hearing Date(s):February 4, 1988

Senate Staff:Robin Rettew (786-7306)

AS OF FEBRUARY 3, 1988

BACKGROUND:

Motor vehicle excise tax is levied if the Department of Licensing or its agents fail to charge and collect the full amount of excise tax owed on a vehicle, the department bills the individual for the amount of excise tax owing, providing it is $5.00 or more. The department currently processes about 25,000 underpayments per fiscal year at a value of about $264,000.

SUMMARY:

The department is prohibited from collecting motor vehicle excise tax underpayments due to errors made by the department or its agents.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 28, 1988