Z-1222               _______________________________________________

                                                   HOUSE BILL NO. 1940

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Walk, Schmidt, Zellinsky, Pruitt, S. Wilson, Spanel and Schoon;by request of Governor Gardner

Read first time 2/1/88 and referred to Committee on Transportation.

AN ACT Relating to motor vehicle excise tax; amending RCW 82.44.110; and reenacting and amending RCW 82.44.020.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 82.44.020, chapter 15, Laws of 1961 as last amended by section 1, chapter 260, Laws of 1987 and by section 5, chapter 9, Laws of 1987 1st ex. sess. and RCW 82.44.020 are each reenacted and amended to read as follows:

          (1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses.  The annual amount of such excise tax shall be two percent of the fair market value of such vehicle.

          (2) An additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the fair market value of such vehicle.

          (3) Effective with January, 1989, motor vehicle license expirations, ((and ending after December, 1990, expirations,))  an additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise tax shall be one-tenth of one percent of the fair market value of such vehicle.

          (4) The department of licensing and county auditors shall collect the additional tax imposed by subsections (2) and (3) of this section for any registration year for the months of that registration year in which such additional tax is effective, and in the same manner and at the same time as the tax imposed by subsection (1) of this section.

          (5) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

          (6) An additional tax is imposed equal to the taxes payable under subsections (1) and (2) of this section multiplied by the rate specified in RCW 82.02.030.

          (7) Washington residents, as defined in RCW 46.16.028, who license motor vehicles in another state or foreign country and avoid Washington motor vehicle excise taxes are liable for such unpaid excise taxes.  The department of revenue may assess and collect the unpaid excise taxes under chapter 82.32 RCW, including the penalties and interest provided therein.

        Sec. 2.  Section 82.44.110, chapter 15, Laws of 1961 as last amended by section 7, chapter 9, Laws of 1987 1st ex. sess. and RCW 82.44.110 are each amended to read as follows:

          The county auditor shall regularly, when remitting license fee receipts, pay over and account to the director of licensing for the excise taxes collected under the provisions of this chapter.  The director shall forthwith transmit the excise taxes to the state treasurer, ninety-eight percent of which excise tax revenue shall upon receipt thereof be credited by the state treasurer to the general fund, and two percent of which excise tax revenue shall be credited by the state treasurer to the motor  vehicle fund to defray administrative and other expenses incurred by the state department of licensing in the collection of the excise tax:  PROVIDED, That:

          (1) One hundred percent of the proceeds of the additional tax imposed by RCW 82.44.020(2) shall be credited by the state treasurer to the Puget Sound capital construction account in the motor vehicle fund;

          (2) One hundred percent of the proceeds of the additional tax imposed by RCW 82.44.020(3) shall be credited by the state treasurer to the Puget Sound ferry operations account in the motor vehicle fund; and

          (3) All revenues collected under RCW 82.44.020(6) shall be credited by the state treasurer to the general fund.

The department of transportation shall submit a report to the legislative transportation committee and the office of financial management by September 30, 1988, and September 30, 1992, describing the impact of the additional tax imposed by RCW 82.44.020(3) on ferry routes, proposed fares, subsidy ratios, and capital plans.