HOUSE BILL REPORT

                 SSB 5876

                  As Passed House - Amended

                       April 12, 1993

Title:  An act relating to ride sharing, vanpools, and public transportation facilities and vehicles.

Brief Description:  Extending incentives for ride sharing and vanpools.

Sponsors:  Senate Committee on Transportation (originally sponsored by Senators Prentice, Skratek, Sellar, M. Rasmussen and Winsley).

Brief History:

  Reported by House Committee on:

Transportation, April 1, 1993, DPA;

  Passed House - Amended, April 12, 1993, 95-0.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass as amended.  Signed by 26 members:  Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.

Minority Report:  Do not pass.  Signed by 1 member:  Representative Schmidt, Ranking Minority Member.

Staff:  Brian McMorrow (786-7304).

Background:  The commute trip reduction law requires that major employers in the state's eight largest counties reduce the number of their employees traveling to work by single-occupant vehicle.  One effective strategy for meeting the commute trip reduction law's goals is to encourage commuters to participate in vanpool and ride-sharing programs.

Summary of Bill:  Passenger motor vehicles (vans and cars) that are used primarily as ride-sharing vehicles for commuter ride-sharing and do not exceed 10,000 pounds, and passenger motor vehicles that are used primarily as ride-sharing vehicles for the elderly or handicapped and carry at least five persons, including the driver, are exempt for 36 months from sales and use tax.  If the vehicles are used for ride-sharing for less than 36 months, the registered owner must notify the Department of Revenue and pay the appropriate sales or use tax due.

To qualify for the sales or use tax exemption, vehicles with five or six passengers, including the driver, operating within the state's eight largest counties will also be required to participate in a transit agency-sponsored or commute trip reduction law-required program.

Passenger motor vehicles (vans and cars) that are used primarily as ride-sharing vehicles and carry at least five persons including the driver, or at least four persons including the driver, when at least two persons are confined to wheelchairs while riding, are exempt from the motor vehicle excise tax.  Additionally, vehicles that are used primarily as commuter ride-sharing vehicles must not exceed 10,000 pounds.  The registered owner of a vehicle that is no longer primarily used for ride-sharing must notify the Department of Licensing (DOL) and pay the motor vehicle excise tax due. 

To qualify for the motor vehicle excise tax exemption, vehicles with five or six passengers, including the driver, operating within the state's eight largest counties will also be required to participate in a transit agency-sponsored or commute trip reduction law-required program.

A person who knowingly gives false information to DOL when applying for special plates required for ride-sharing vehicles may be guilty of a gross misdemeanor.

The Department of Licensing must adopt by rule a process for annually recertifying vehicles registered as ride-sharing vehicles to discourage abuse of tax exemptions.  The department, in consultation with the Department of Transportation, must submit a report to the Transportation committees assessing its ability to restrict the ride-sharing tax exemptions to bona fide ride-sharing vehicles.

The sunset on sales tax, use tax and motor vehicle excise tax exemptions for ride-sharing vehicles is repealed.

Fiscal Note:  Requested March 1, 1993.

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

Testimony For:  This bill encourages the use of ride-sharing vehicles as a way of reducing the number of single-occupant vehicles that travel on the state's highways during rush hour.

Testimony Against:  None.

Witnesses:  Ann Martin, King County, Washington State Ridesharing Organization, and ALT-TRANS.