HOUSE BILL REPORT

                  HB 1842

                       As Passed House

                       March 15, 1993

Title:  An act relating to county vehicle license fees.

Brief Description:  Authorizing exemptions from county vehicle license fees.

Sponsors:  Representatives R. Fisher, Wood, King, Scott, Conway, Karahalios, Roland and Flemming.

Brief History:

  Reported by House Committee on:

Transportation, February 23, 1993, DP;

Passed House, March 15, 1993, 97-0.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.  Signed by 23 members:  Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Finkbeiner; Forner; Fuhrman; Hansen; Horn; Johanson; J. Kohl; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; and Wood.

Staff:  Brad Lovaas (786-7307).

Background:  As part of the 1990 transportation revenue package, the Legislature authorized counties to impose several different "local option" taxes to raise revenue for local transportation purposes.  One of the local option taxes is an addition to the state motor vehicle registration fee and is not to exceed $15.

The 1991 Legislature authorized a refund process that a county could initiate.  To qualify for a refund, an individual must be a registered owner residing within the boundaries of the county and a) be 61 years or older at the time of the payment of the fee and have had an income of less than $18,000 for the previous year, or b) have a physical disability.

The counties which have instituted the local option $15 fee have found the refund process is cost prohibitive and confusing to the public.  The public has been confused as to why they first have to pay the fee and then apply for a refund.

Summary of Bill:  The current refund process is changed to an exemption process.  The qualification specifying that an individual had to be 61 years or older and make less than $18,000 a year is changed to 61 years or older and make less than an amount prescribed by the county legislative authority.

Fiscal Note:  Requested February 16, 1993.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The refund process will be less expensive to administer.

Testimony Against:  None.

Witnesses:  George Walk, Pierce, King and Snohomish counties.