Z-142                 _______________________________________________

                                                   SENATE BILL NO. 5327

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Patterson, Craswell, Metcalf, Vognild and McMullen; by request of Governor

Read first time 1/20/89 and referred to Committee on   Transportation.

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

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

        Sec. 1.  Section 1, chapter 191, Laws of 1988 and RCW 82.44.020 are each 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, 1991, 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.