SENATE BILL REPORT

SHB 2076

BYHouse Committee on Revenue (originally sponsored by Representatives Pruitt, Fraser, G. Fisher, Phillips and Brekke)

Collecting a tire disposal fee per vehicle per year at the time of vehicle registration.

House Committe on Revenue

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Metcalf, Chairman; Bauer, Kreidler, Owen, Sutherland.

Senate Staff:Gary Wilburn (786-7453)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES, MARCH 31, 1989

BACKGROUND:

In 1985, the Legislature established a vehicle tire recycling program and imposed an annual assessment on retail sales of new replacement vehicle tires.  The rate of assessment is twelve hundredths of one percent (.12 percent) of the gross proceeds of vehicle tires sold by persons engaged in business in the state.  The assessment does not apply to tires on new vehicles nor to retreads or used tires.

Monies from the assessment are placed in the vehicle tire recycling account within the State Treasury.  These monies may be used for: 1) assisting the state and local governments for the removal of discarded vehicle tires from unauthorized tire dump sites; and 2) assisting local governments in planning, enforcement, and financing of solid waste and proper disposal and recycling of discarded tires.  Monies in the account are appropriated to the Department of Ecology for the purposes stated above.

For the 1987-89 biennium, the vehicle tire recycling account contains approximately $310,000.

SUMMARY:

Effective with purchases of vehicle registrations with December, 1990 or later expiration dates, a new fee of $1.00 per vehicle is imposed.  The current excise tax of .12 percent of the gross proceeds of new replacement tires remains in effect until January 1, 1990.

The new $1.00 per vehicle fee will be collected by the Department of Licensing.  The Department of Revenue will collect the existing excise tax on tires until its expiration date.

The new $1.00 per vehicle fee expires for vehicle registrations with December, 1995 or later expirations dates.  An appropriate standing committee of the Legislature shall at that time review the appropriateness of continuing the $1.00 fee in relation to progress made in cleaning up tire dump sites and accomplishment of tire recycling programs.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENTS: 

The amendment replaces the original bill.  A $1.00 per tire fee on new replacement tires is imposed for five years beginning July 1, 1989.  The funds will be used for grants to local governments for on-site shredding and recycling projects and enforcement programs, for public information and education regarding proper tire disposal, and for studies of alternatives to land disposal.

Senate Committee - Testified: No one