H-224                _______________________________________________

                                                   HOUSE BILL NO. 1782

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Nelson and Sprenkle

Read first time 2/3/89 and referred to Committee on Revenue. Referred 2/6/89 to Committee on Transportation.

AN ACT Relating to a retail sales tax to encourage purchase of fuel-efficient vehicles; and adding a new section to chapter 82.08 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

          The tax levied by RCW 82.08.020 on a personal motor vehicle, as defined in RCW 82.44.010(, as amended by chapter --- (H-220), Laws of 1989), shall be increased or decreased in relation to the fuel use efficiency of the vehicle.  The state energy office shall adopt by rule a reference fuel efficiency standard.  The standard shall be based on the federal corporate average fuel economy standard or other appropriate criteria as determined by the office.  All electric, propane, and natural gas-powered vehicles, and those rated at three or more miles per gallon greater than the reference fuel efficiency standard shall pay fifty percent of the tax levied by RCW 82.08.020.  Vehicles rated at less than three miles per gallon more through two miles per gallon less than the reference fuel efficiency standard shall pay one hundred percent of the tax levied by RCW 82.08.020.  Vehicles rated at greater than two miles per gallon less through five miles per gallon less than the reference fuel efficiency standard shall pay one hundred and twenty-five percent of the tax levied by RCW 82.08.020.  Vehicles rated at greater than five miles per gallon less than the reference fuel efficiency standard shall pay one hundred and seventy-five percent of the tax levied by RCW 82.08.020.