AN
ACT Relating to the decriminalization of license fraud violations and
establishing a license fraud task force in the Washington state patrol;
amending RCW 47.68.240, 47.68.255, 82.48.020, 82.49.010, 82.50.400, 88.02.118,
and 82.32.090; reenacting and amending RCW 46.16.010; creating new sections;
and prescribing penalties.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature recognizes that there are residents of this state who intentionally
register motor vehicles in other states to evade payment of taxes and fees
required by the laws of this state. This results in a substantial loss of
revenue to the state. It is the intent of the legislature to decriminalize
license fraud and impose stronger civil penalties upon residents who defraud
the state, thereby enhancing compliance with state registration laws and
increasing state revenues. To further enhance enforcement and collection
efforts, the legislature intends to create a license fraud task force within
the Washington state patrol.
NEW
SECTION. Sec. 2. The
task force consists of staff from the Washington state patrol, the department
of revenue, and the attorney general's office. The task force personnel are:
(1)
One Washington state patrol sergeant, who has overall responsibility to
coordinate the task force;
(2)
Three Washington state patrol detectives, to investigate license fraud;
(3)
One department of revenue tax discovery agent, to assess and recover delinquent
tax, penalties, and interest;
(4)
One assistant attorney general, to provide legal services to the task force;
and
(5)
One clerical support person, for administrative support for the task force as a
whole.
NEW
SECTION. Sec. 3. A
penalty assessed pursuant to RCW 46.16.010 (1)(a) and (2), 47.68.255, or
82.48.020 is due and payable when the person incurring it receives a notice in
writing from the state patrol stating the violation and advising the person
that the penalty is due. The state patrol may, upon written application for
review received within fifteen days from the date of the penalty assessment,
remit or mitigate a penalty. Procedures for these actions are governed by
chapter 34.05 RCW. The penalty notice has the effect of an agency order.
Sec.
4. RCW
46.16.010 and 1997 c 328 s 2 and 1997 c 241 s 13 are each reenacted and amended
to read as follows:
(1)
It is ((unlawful)) a violation for a person to operate any
vehicle over and along a public highway of this state without first having
obtained and having in full force and effect a current and proper vehicle
license and display vehicle license number plates therefor as by this chapter provided.
((Failure to make initial registration before operation on the highways of
this state is a misdemeanor, and any person convicted thereof shall be punished
by a fine of no less than three hundred thirty dollars, no part of which may be
suspended or deferred.))
(a)
Failure to make initial registration of a vehicle before operating it on the
highways of this state is a violation of this section. Anyone who violates
this section is liable for a penalty of three hundred fifty dollars for each
violation in addition to all other penalties provided by law. Persons
violating this subsection shall make payment as prescribed in subsection (2)(b)
of this section.
(b)
Failure to renew an expired registration before operation on the highways of
this state is a traffic infraction, which shall not be resolved through the
civil process instituted under this section.
(2)(a)
The licensing of a vehicle in another state by a resident of this state, as
defined in RCW 46.16.028, ((evading)) to avoid the payment of any
tax or license fee imposed in connection with registration, is a ((gross
misdemeanor punishable as follows:)) violation of this section, and
violators are liable for a monetary penalty not less than one thousand dollars
but not more than ten thousand dollars for each violation.
(((a)
For a first offense, up to one year in the county jail and a fine equal to
twice the amount of delinquent taxes and fees, no part of which may be
suspended or deferred;))
(b)
((For a second or subsequent offense, up to one year in the county jail and
a fine equal to four times the amount of delinquent taxes and fees, no part of
which may be suspended or deferred;)) The penalty provided in subsection
(1)(a) of this section and this subsection is due and payable when the person
incurring it receives a notice in writing from the state patrol describing the
violation and advising the person that the penalty is due. The state patrol
may, upon written application for review, received within fifteen days, remit
or mitigate a penalty provided for in this section or discontinue an action to
recover the penalty upon such terms it deems proper and may ascertain the facts
in a manner and under rules it deems proper. If the amount of the penalty is
not paid to the state patrol within fifteen days after receipt of the notice
imposing the penalty, or application for remission or mitigation has not been
made within fifteen days after the violator has received notice of the
disposition of the application, the attorney general shall bring an action in
the name of the state of Washington in the superior court of Thurston county or
of any other county in which the violator resides or does business, to recover
the penalty, administrative fees, and attorneys' fees and costs incurred in
recovering the penalties. All penalties recovered under this section shall be
paid into the state treasury and credited to the state patrol highway account
of the motor vehicle fund for the license fraud task force.
(c)
((For fines levied under (b) of this subsection, an amount equal to the
avoided taxes and fees owed shall be deposited in the vehicle licensing fraud
account created in the state treasury;
(d))) The
avoided taxes and fees shall be deposited and distributed in the same manner as
if the taxes and fees were properly paid in a timely fashion.
(3)
These provisions shall not apply to the following vehicles:
(a)
Electric-assisted bicycles;
(b)
Farm vehicles if operated within a radius of fifteen miles of the farm where
principally used or garaged, farm tractors and farm implements including
trailers designed as cook or bunk houses used exclusively for animal herding
temporarily operating or drawn upon the public highways, and trailers used
exclusively to transport farm implements from one farm to another during the
daylight hours or at night when such equipment has lights that comply with the
law;
(c)
Spray or fertilizer applicator rigs designed and used exclusively for spraying
or fertilization in the conduct of agricultural operations and not primarily for
the purpose of transportation, and nurse rigs or equipment auxiliary to the use
of and designed or modified for the fueling, repairing, or loading of spray and
fertilizer applicator rigs and not used, designed, or modified primarily for
the purpose of transportation;
(d)
Fork lifts operated during daylight hours on public highways adjacent to and
within five hundred feet of the warehouses which they serve: PROVIDED FURTHER,
That these provisions shall not apply to vehicles used by the state parks and recreation
commission exclusively for park maintenance and operations upon public highways
within state parks;
(e)
"Special highway construction equipment" defined as follows: Any
vehicle which is designed and used primarily for grading of highways, paving of
highways, earth moving, and other construction work on highways and which is
not designed or used primarily for the transportation of persons or property on
a public highway and which is only incidentally operated or moved over the
highway. It includes, but is not limited to, road construction and maintenance
machinery so designed and used such as portable air compressors, air drills,
asphalt spreaders, bituminous mixers, bucket loaders, track laying tractors,
ditchers, leveling graders, finishing machines, motor graders, paving mixers,
road rollers, scarifiers, earth moving scrapers and carryalls, lighting plants,
welders, pumps, power shovels and draglines, self-propelled and tractor-drawn
earth moving equipment and machinery, including dump trucks and tractor-dump
trailer combinations which either (i) are in excess of the legal width, or (ii)
which, because of their length, height, or unladen weight, may not be moved on
a public highway without the permit specified in RCW 46.44.090 and which are not
operated laden except within the boundaries of the project limits as defined by
the contract, and other similar types of construction equipment, or (iii) which
are driven or moved upon a public highway only for the purpose of crossing such
highway from one property to another, provided such movement does not exceed
five hundred feet and the vehicle is equipped with wheels or pads which will
not damage the roadway surface.
Exclusions:
"Special
highway construction equipment" does not include any of the following:
Dump
trucks originally designed to comply with the legal size and weight provisions
of this code notwithstanding any subsequent modification which would require a
permit, as specified in RCW 46.44.090, to operate such vehicles on a public
highway, including trailers, truck-mounted transit mixers, cranes and shovels,
or other vehicles designed for the transportation of persons or property to
which machinery has been attached.
(4)
The following vehicles, whether operated solo or in combination, are exempt from
license registration and displaying license plates as required by this chapter:
(a)
A converter gear used to convert a semitrailer into a trailer or a two-axle
truck or tractor into a three or more axle truck or tractor or used in any
other manner to increase the number of axles of a vehicle. Converter gear
includes an auxiliary axle, booster axle, dolly, and jeep axle.
(b)
A tow dolly that is used for towing a motor vehicle behind another motor
vehicle. The front or rear wheels of the towed vehicle are secured to and rest
on the tow dolly that is attached to the towing vehicle by a tow bar.
Sec.
5. RCW
47.68.240 and 1993 c 238 s 3 are each amended to read as follows:
Any
person violating any of the provisions of this chapter, or any of the rules,
regulations, or orders issued pursuant thereto, shall be guilty of a
misdemeanor and shall be punished as provided under chapter 9A.20 RCW, except
that any person violating any of the provisions of RCW 47.68.220((,)) or
47.68.230((, or 47.68.255)) shall be guilty of a gross misdemeanor which
shall be punished as provided under chapter 9A.20 RCW. In addition to, or in
lieu of, the penalties provided in this section, or as a condition to the
suspension of a sentence which may be imposed pursuant thereto, for violations
of RCW 47.68.220 and 47.68.230, the court in its discretion may prohibit the
violator from operating an aircraft within the state for such period as it may
determine but not to exceed one year. Violation of the duly imposed
prohibition of the court may be treated as a separate offense under this
section or as a contempt of court.
Sec.
6. RCW
47.68.255 and 1996 c 184 s 3 are each amended to read as follows:
(1)
A person who is required to register an aircraft under this chapter and who
registers an aircraft in another state or foreign country ((evading)) avoiding
the Washington aircraft ((excise tax is guilty of a gross misdemeanor)) taxes,
commits a violation of this section and is liable for those unpaid taxes and
for a monetary penalty not less than one thousand dollars but not more than ten
thousand dollars for each violation. ((For a second or subsequent
offense, the person convicted is also subject to a fine equal to four times the
amount of avoided taxes and fees, no part of which may be suspended or
deferred. Excise taxes owed and fines assessed shall be deposited in the
manner provided under RCW 46.16.010(2).))
(2) The penalty provided in this section is due and payable when
the person incurring it receives a notice in writing from the state patrol
describing the violation and advising the person that the penalty is due. The
state patrol may, upon written application for review, received within fifteen
days, remit or mitigate a penalty provided for in this section or discontinue
an action to recover the penalty upon such terms it deems proper and may
ascertain the facts in a manner and under rules it deems proper. If the amount
of the penalty is not paid to the state patrol within fifteen days after
receipt of the notice imposing the penalty, or application for remission or
mitigation has not been made within fifteen days after the violator has
received notice of the disposition of the application, the attorney general
shall bring an action in the name of the state of Washington in the superior
court of Thurston county or of any other county in which the violator does
business, to recover the penalty, administrative fees, and attorneys' fees.
All penalties recovered under this section shall be paid into the state
treasury and credited to the state patrol highway account of the motor vehicle
fund for the license fraud task force. The department of revenue may assess
and collect the unpaid excise tax under chapter 82.32 RCW, including the
penalties and interest provided in chapter 82.32 RCW.
Sec.
7. RCW
82.48.020 and 1993 c 238 s 5 are each amended to read as follows:
(1)
An annual excise tax is hereby imposed for the privilege of using any aircraft
in the state. A current certificate of air worthiness with a current
inspection date from the appropriate federal agency and/or the purchase of
aviation fuel shall constitute the necessary evidence of aircraft use or
intended use. The tax shall be collected annually or under a staggered
collection schedule as required by the secretary by rule. No additional tax
shall be imposed under this chapter upon any aircraft upon the transfer of
ownership thereof, if the tax imposed by this chapter with respect to such
aircraft has already been paid for the year in which transfer of ownership
occurs. A violation of this subsection is a misdemeanor punishable as provided
under chapter 9A.20 RCW.
(2)(a)
Persons who are required to register aircraft under chapter 47.68 RCW and who
register aircraft in another state or foreign country and avoid the Washington
aircraft ((excise tax are liable for such unpaid excise tax)) taxes,
violate this section and are liable for a monetary penalty of not less than one
thousand dollars but not more than ten thousand dollars for each violation.
((A violation of this subsection is a gross misdemeanor.))
(b)
The penalty provided in this section is due and payable when the person
incurring it receives a notice in writing from the state patrol describing the
violation and advising the person that the penalty is due. The state patrol
may, upon written application for review, received within fifteen days, remit
or mitigate a penalty provided for in this section or discontinue an action to
recover the penalty upon such terms it deems proper and may ascertain the facts
in a manner and under rules it deems proper. If the amount of the penalty is
not paid to the state patrol within fifteen days after receipt of the notice
imposing the penalty, or application for remission or mitigation has not been
made within fifteen days after the violator has received notice of the
disposition of the application, the attorney general shall bring an action in
the name of the state of Washington in the superior court of Thurston county or
of any other county in which the violator resides or does business, to recover
the penalty, administrative fees, and attorneys' fees. In all such actions,
the procedure and rules of evidence are the same as an ordinary civil action
except as otherwise provided in this chapter. All penalties recovered under
this section shall be paid into the state treasury and credited to the state
patrol highway account of the motor vehicle fund for the license fraud task
force.
(3)
The department of revenue may assess and collect the unpaid excise tax under
chapter 82.32 RCW, including the penalties and interest provided in chapter
82.32 RCW.
(((3)))
(4) Except as provided under subsections (1) and (2) of this section, a
violation of this chapter is a misdemeanor punishable as provided in chapter
9A.20 RCW.
Sec.
8. RCW
82.49.010 and 1993 c 238 s 6 are each amended to read as follows:
(1)
An excise tax is imposed for the privilege of using a vessel upon the waters of
this state, except vessels exempt under RCW 82.49.020. The annual amount of
the excise tax is one-half of one percent of fair market value, as determined
under this chapter, or five dollars, whichever is greater. Violation of this
subsection is a misdemeanor.
(2)(a)
A person((s)) who ((are)) is required under chapter
88.02 RCW to register a vessel in this state and who registers the
vessel in another state or foreign country and avoids the Washington
watercraft ((excise tax are guilty of a gross misdemeanor and are liable for
such unpaid excise tax)) taxes, violates this section and is liable for
those taxes and a monetary penalty not less than one thousand dollars but not
more than ten thousand dollars for each violation. ((The department of
revenue may assess and collect the unpaid excise tax under chapter 82.32 RCW,
including the penalties and interest provided in chapter 82.32 RCW.))
(b)
The penalty provided in this section is due and payable when the person
incurring it receives a notice in writing from the state patrol describing the
violation and advising the person that the penalty is due. The state patrol
may, upon written application for review, received within fifteen days, remit
or mitigate a penalty provided for in this section or discontinue an action to
recover the penalty upon such terms it deems proper and may ascertain the facts
in a manner and under rules it deems proper. If the amount of the penalty is
not paid to the state patrol within fifteen days after receipt of the notice
imposing the penalty, or application for remission or mitigation has not been
made within fifteen days after the violator has received notice of the
disposition of the application, the attorney general shall bring an action in
the name of the state of Washington in the superior court of Thurston county or
of any other county in which the violator resides or does business, to recover
the penalty, administrative fees, and attorneys' fees. All penalties recovered
under this section shall be paid into the state treasury and credited to the
state patrol highway account of the motor vehicle fund for the license fraud
task force.
(3)
The excise tax upon a vessel registered for the first time in this state shall
be imposed for a twelve-month period, including the month in which the vessel
is registered, unless the director of licensing extends or diminishes vessel
registration periods for the purpose of staggered renewal periods under RCW
88.02.050. A vessel is registered for the first time in this state when the
vessel was not registered in this state for the immediately preceding
registration year, or when the vessel was registered in another jurisdiction
for the immediately preceding year. The excise tax on vessels required to be
registered in this state on June 30, 1983, shall be paid by June 30, 1983.
Sec.
9. RCW
82.50.400 and 1993 c 238 s 7 are each amended to read as follows:
(1)
An annual excise tax is imposed on the owner of any travel trailer or camper
for the privilege of using such travel trailer or camper in this state. The
excise tax hereby imposed shall be due and payable to the department of
licensing or its agents at the time of registration of a travel trailer or
camper. Whenever an application is made to the department of licensing or its
agents for a license for a travel trailer or camper there shall be collected,
in addition to the amount of the license fee or renewal license fee, the amount
of the excise tax imposed by this chapter, and no dealer's license or license
plates, and no license or license plates for a travel trailer or camper may be
issued unless such tax is paid in full. No additional tax shall be imposed
under this chapter upon any travel trailer or camper upon the transfer of
ownership thereof, if the tax imposed by this chapter with respect to such
travel trailer or camper has already been paid for the registration year or
fractional part thereof in which such transfer occurs. Violation of this
subsection is a ((misdemeanor)) violation of RCW 46.16.010 (1)(a) and
(2), and penalties apply.
(2)
Persons who are required to license travel trailers or campers under chapter
46.16 RCW and who license travel trailers or campers in another state or
foreign country to avoid the Washington travel trailer or camper tax are ((guilty
of a gross misdemeanor and are liable for such unpaid excise tax)) in
violation of RCW 46.16.010 (1)(a) and (2), and penalties apply. The
department of revenue may assess and collect the unpaid excise tax under
chapter 82.32 RCW, including the penalties and interest provided in chapter
82.32 RCW.
Sec.
10. RCW
88.02.118 and 1996 c 184 s 4 are each amended to read as follows:
(1)(a)
It is a ((gross misdemeanor punishable as provided under chapter 9A.20 RCW))
violation for any person owning a vessel subject to taxation under
chapter 82.49 RCW to register a vessel in another state to avoid Washington
state vessel ((excise tax)) taxes required under chapter 82.49
RCW or to obtain a vessel dealer's registration for the purpose of ((evading
excise tax)) avoiding taxes on vessels under chapter 82.49 RCW. ((For
a second or subsequent offense, the person convicted is also subject to a fine
equal to four times the amount of avoided taxes and fees, no part of which may
be suspended or deferred. Excise taxes owed and fines assessed shall be
deposited in the manner provided under RCW 46.16.010(2).))
(b)
The monetary penalty is not less than one thousand dollars but not more than
ten thousand dollars for each violation.
(2) The penalty provided in this section is due and payable when
the person incurring it receives a notice in writing from the state patrol
describing the violation and advising the person that the penalty is due. The
state patrol may, upon written application for review, received within fifteen
days, remit or mitigate a penalty provided for in this section or discontinue
an action to recover the penalty upon such terms it deems proper and may
ascertain the facts in a manner and under rules it deems proper. If the amount
of the penalty is not paid to the state patrol within fifteen days after
receipt of the notice imposing the penalty, or application for remission or
mitigation has not been made within fifteen days after the violator has
received notice of the disposition of the application, the attorney general
shall bring an action in the name of the state of Washington in the superior
court of Thurston county or of any other county in which the violator resides
or does business, to recover the penalty, administrative fees, and attorneys'
fees. In all such actions, the procedure and rules of evidence are the same as
an ordinary civil action except as otherwise provided in this chapter. All
penalties recovered under this section shall be paid into the state treasury
and credited to the state patrol highway account of the motor vehicle fund for
the license fraud task force.
Sec.
11. RCW
82.32.090 and 1996 c 149 s 15 are each amended to read as follows:
(1)
If payment of any tax due on a return to be filed by a taxpayer is not received
by the department of revenue by the due date, there shall be assessed a penalty
of five percent of the amount of the tax; and if the tax is not received on or
before the last day of the month following the due date, there shall be
assessed a total penalty of ten percent of the amount of the tax; and if the
tax is not received on or before the last day of the second month following the
due date, there shall be assessed a total penalty of twenty percent of the
amount of the tax. No penalty so added shall be less than five dollars.
(2)
If payment of any tax assessed by the department of revenue is not received by
the department by the due date specified in the notice, or any extension
thereof, the department shall add a penalty of ten percent of the amount of the
additional tax found due. No penalty so added shall be less than five dollars.
(3)
If a warrant be issued by the department of revenue for the collection of
taxes, increases, and penalties, there shall be added thereto a penalty of five
percent of the amount of the tax, but not less than ten dollars.
(4)
If the department finds that all or any part of a deficiency resulted from the
disregard of specific written instructions as to reporting or tax liabilities,
the department shall add a penalty of ten percent of the amount of the
additional tax found due because of the failure to follow the instructions. A
taxpayer disregards specific written instructions when the department of
revenue has informed the taxpayer in writing of the taxpayer's tax obligations
and the taxpayer fails to act in accordance with those instructions unless the
department has not issued final instructions because the matter is under appeal
pursuant to this chapter or departmental regulations. The department shall not
assess the penalty under this section upon any taxpayer who has made a good
faith effort to comply with the specific written instructions provided by the
department to that taxpayer. Specific written instructions may be given as a
part of a tax assessment, audit, determination, or closing agreement, provided
that such specific written instructions shall apply only to the taxpayer
addressed or referenced on such documents. Any specific written instructions
by the department of revenue shall be clearly identified as such and shall
inform the taxpayer that failure to follow the instructions may subject the
taxpayer to the penalties imposed by this subsection.
(5)(a)
If the department finds that all or any part of the deficiency resulted from an
intent to evade the tax payable hereunder, a further penalty of fifty percent
of the additional tax found to be due shall be added.
(b)
There is a rebuttable presumption of a tax deficiency and intent to avoid and
evade the tax under the motor vehicle excise tax under chapter 82.44 RCW, the
aircraft excise tax under chapter 82.48 RCW, the watercraft excise tax under
chapter 82.49 RCW, the trailers and campers excise tax under chapter 82.50 RCW,
or use tax under chapter 82.12 RCW, if there is a finding resulting from a
proceeding brought under RCW 46.16.010, 47.68.255, 82.48.020, 82.49.010, or
88.02.118, that the person failed to properly register or license a motor
vehicle, an aircraft, a watercraft, a trailer, or a camper.
(6)
The aggregate of penalties imposed under subsections (1), (2), and (3) of this
section shall not exceed thirty-five percent of the tax due, or twenty dollars,
whichever is greater. This subsection does not prohibit or restrict the
application of other penalties authorized by law.
(7)
The department of revenue may not impose both the evasion penalty and the
penalty for disregarding specific written instructions on the same tax found to
be due.
(8)
For the purposes of this section, "return" means any document a
person is required by the state of Washington to file to satisfy or establish a
tax or fee obligation that is administered or collected by the department of
revenue, and that has a statutorily defined due date.
