CERTIFICATION OF ENROLLMENT

                   SUBSTITUTE HOUSE BILL 2858

                        55th Legislature

                      1998 Regular Session

Passed by the House March 7, 1998  Yeas 96   Nays 0 Speaker of the       House of Representatives Passed by the Senate March 5, 1998   Yeas 49   Nays 0

CERTIFICATE I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2858  as passed by the House of Representatives and the Senate on the dates hereon set forth.

President of the Senate

Chief Clerk

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                   State of Washington

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                    SUBSTITUTE HOUSE BILL 2858

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                     AS AMENDED BY THE SENATE

             Passed Legislature - 1998 Regular Session

State of Washington      55th Legislature     1998 Regular Session

By House Committee on Transportation Policy & Budget (originally sponsored by Representatives Zellinsky and Fisher)

Read first time 02/02/98.  Referred to Committee on .

Reflecting current practice for payment of taxes on rental cars.  

    AN ACT Relating to payment of taxes on rental cars; amending RCW 82.44.023; creating a new section; and declaring an emergency.

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

    Sec. 1.  RCW 82.44.023 and 1994 c 227 s 3 are each amended to read as follows:

    Rental cars as defined in RCW 46.04.465 are exempt from the taxes imposed in RCW 82.44.020 (1) and (2).  When a rental car ceases to be used for rental car purposes ((and at the time of its retail sale, the excise tax imposed in RCW 82.44.020 (1) and (2) shall be imposed in an amount equal to one-twelfth of the annual excise tax then in effect, for each full month remaining in the vehicle's registration year)) the year and month tabs on the license plates shall be altered by the rental car company in such a manner as to render the plate void of any designation of month and year.  The department of licensing shall, by rule, set forth the process of alteration and shall provide at no cost to the rental car company, any materials necessary to render the plate void of any designation of the month and year tabs.  At the time of retail sale, motor vehicle excise tax and applicable licensing fees will be collected for a full twelve months.

NEW SECTION. Sec. 2.  The vehicle services division of the department of licensing shall convene a study group to include representatives from the department of licensing, the department of revenue, the rental car industry, and the franchised vehicle dealers industry.  The study group shall conduct an assessment of the registration year impact during the period of January 1, 1997, through July 1, 1999, upon the requirements of RCW 46.16.006, 82.08.020, and chapter 82.44 RCW and whether the tax rate currently set on car rental transactions provides revenue neutrality.  The study group shall report its findings and recommendations, if any, to the transportation committees of the house of representatives and senate by December 31, 1998.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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