HOUSE BILL REPORT

HB 1689

BYRepresentatives Kremen, Gallagher and S. Wilson; by request of  Department of Licensing

Revising provisions for refund of licensing fees.

House Committe on Transportation

Majority Report:  Do pass.  (24)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Betrozoff, Cooper, G. Fisher, R. Fisher, Gallagher, Hankins, Haugen, Heavey, Jones, Kremen, R. Meyers, Nelson, Patrick, Prentice, Prince, Smith, D. Sommers, Todd, Walker and Zellinsky.

House Staff:Louise Bray (786-7322)

AS PASSED HOUSE MARCH 6, 1989

BACKGROUND:

The Department of Licensing is required under current law to refund any overpayment of $5.00 or more and to collect any underpayment of $5.00 or more.  If a license fee required under Title 46 RCW is paid erroneously, in whole or in part, a person is entitled to a refund, provided he or she applies for such refund within 13 months of the claimed erroneous payment.  Current law does not provide a refund/collection procedure for vessels.

According to an analysis prepared by the Department of Licensing in December, 1987, the cost to process these refunds/collections is 4.48 times the rate of return for the category $5.00 to $9.99.  The error rate should be reduced dramatically when the County Auditor Automation Program comes on line.

SUMMARY:

The Department of Licensing is required to refund overpayments and collect underpayments of license fees/excise taxes for motor vehicles, mobile homes, campers, travel trailers and vessels if the error is $10.00 or more.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Nancy Kelly, Department of Licensing.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The cost to process shortages and overages under current law exceeds any net return to the state.

House Committee - Testimony Against:      None Presented.