2969-S AMH NEAL 55

~~42,000 lbs........... $ 456.00 $ 546.00~~

~~44,000 lbs........... $ 466.00 $ 556.00~~

~~46,000 lbs........... $ 501.00 $ 591.00~~

~~48,000 lbs........... $ 522.00 $ 612.00~~

~~50,000 lbs........... $ 566.00 $ 656.00~~

~~52,000 lbs........... $ 595.00 $ 685.00~~

~~54,000 lbs........... $ 642.00 $ 732.00~~

~~56,000 lbs........... $ 677.00 $ 767.00~~

~~58,000 lbs........... $ 704.00 $ 794.00~~

~~60,000 lbs........... $ 750.00 $ 840.00~~

~~62,000 lbs........... $ 804.00 $ 894.00~~

~~64,000 lbs........... $ 822.00 $ 912.00~~

~~66,000 lbs........... $ 915.00 $ 1,005.00~~

~~68,000 lbs........... $ 954.00 $ 1,044.00~~

~~70,000 lbs........... $ 1,027.00...... $ 1,117.00~~

~~72,000 lbs........... $ 1,098.00...... $ 1,188.00~~

~~74,000 lbs........... $ 1,193.00...... $ 1,283.00~~

~~76,000 lbs........... $ 1,289.00...... $ 1,379.00~~

~~78,000 lbs........... $ 1,407.00...... $ 1,497.00~~

~~80,000 lbs........... $ 1,518.00...... $ 1,608.00~~

~~82,000 lbs........... $ 1,623.00...... $ 1,713.00~~

~~84,000 lbs........... $ 1,728.00...... $ 1,818.00~~

~~86,000 lbs........... $ 1,833.00...... $ 1,923.00~~

~~88,000 lbs........... $ 1,938.00...... $ 2,028.00~~

~~90,000 lbs........... $ 2,043.00...... $ 2,133.00~~

~~92,000 lbs........... $ 2,148.00...... $ 2,238.00~~

~~94,000 lbs........... $ 2,253.00...... $ 2,343.00~~

~~96,000 lbs........... $ 2,358.00...... $ 2,448.00~~

~~98,000 lbs........... $ 2,463.00...... $ 2,553.00~~

~~100,000 lbs.......... $ 2,568.00...... $ 2,658.00~~

~~102,000 lbs.......... $ 2,673.00...... $ 2,763.00~~

~~104,000 lbs.......... $ 2,778.00...... $ 2,868.00~~

~~105,500 lbs.......... $ 2,883.00...... $ 2,973.00~~))

Effective

Gross October 1, 2002, Effective

Weight through September 30, 2003 October 1, 2003

Schedule A Schedule B Schedule A Schedule B

4,000 $37 $37 $37 $37

6,000 44 44 44 44

8,000 55 55 55 55

10,000 62 62 62 62

12,000 77 77 81 81

14,000 88 88 93 93

16,000 99 99 105 105

18,000 148 148 159 159

20,000 165 165 177 177

22,000 178 178 192 192

24,000 192 192 207 207

26,000 203 203 219 219

28,000 239 239 259 259

30,000 276 276 298 298

32,000 332 332 360 360

34,000 353 353 382 382

36,000 382 382 415 415

38,000 420 420 456 456

40,000 480 480 522 522

42,000 499 589 542 632

44,000 510 600 554 644

46,000 549 639 596 686

48,000 572 662 621 711

50,000 620 710 674 764

52,000 652 742 709 799

54,000 704 794 765 855

56,000 742 832 807 897

58,000 772 862 840 930

60,000 822 912 895 985

62,000 882 972 960 1,050

64,000 902 992 981 1,071

66,000 1,004 1,094 1,093 1,183

68,000 1,047 1,137 1,140 1,230

70,000 1,127 1,217 1,227 1,317

72,000 1,205 1,295 1,312 1,402

74,000 1,310 1,400 1,426 1,516

76,000 1,415 1,505 1,542 1,632

78,000 1,545 1.635 1,683 1,773

80,000 1,667 1,757 1,816 1,906

82,000 1,783 1,873 1,942 2,032

84,000 1,898 1,988 2,068 2,158

86,000 2,014 2,104 2,194 2,284

88,000 2,129 2,219 2,320 2,410

90,000 2,245 2,335 2,446 2,536

92,000 2,360 2,450 2,572 2,662

94,000 2,476 2,566 2,698 2,788

96,000 2,591 2,681 2,824 2,914

98,000 2,707 2,797 2,950 3,040

100,000 2,822 2,912 3,076 3,166

102,000 2,938 3,028 3,202 3,292

104,000 3,053 3,143 3,328 3,418

105,500 3,169 3,259 3,454 3,544

Schedule A applies to vehicles either used exclusively for hauling logs or that do not tow trailers. Schedule B applies to vehicles that tow trailers and are not covered under Schedule A.

(2) Every truck, motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle or unless the vehicle is used only for the purpose of transporting any well drilling machine, air compressor, rock crusher, conveyor, hoist, donkey engine, cook house, tool house, bunk house, or similar machine or structure attached to or made a part of such vehicle.

(3) The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:

(a) The new license fee will be one-twelfth of the fee listed above for the new gross weight, multiplied by the number of months remaining in the period for which licensing fees have been paid, including the month in which the new gross weight is effective.

(b) Upon surrender of the current certificate of registration or cab card, the new licensing fees due shall be reduced by the amount of the licensing fees previously paid for the same period for which new fees are being charged.

((~~(2)~~)) (4) The proceeds from the fees collected under ((~~subsection (1) of~~)) this section shall be distributed in accordance with RCW 46.68.035.

Sec. 102. RCW 46.68.035 and 2000 2nd sp.s. c 4 s 8 are each amended to read as follows:

All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:

(1) The sum of two dollars for each vehicle shall be deposited into the multimodal transportation account, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of two dollars shall be credited to the current county expense fund.

(2) The remainder shall be distributed as follows:

(a) 23.677 percent of the proceeds collected on the rate in effect September 30, 2002, shall be deposited into the state patrol highway account of the motor vehicle fund;

(b) 1.521 percent of the proceeds collected on the rate in effect September 30, 2002, shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund; ((~~and~~))

(c) ((~~The remaining~~)) 74.802 percent of the proceeds collected on the rate in effect on September 30, 2002, shall be deposited into the motor vehicle fund; and

(d) The remaining proceeds collected on the difference between the current rate and the rate in effect on September 30, 2002, shall be deposited in the freight mobility strategic investment account.

PART II - FUEL TAX

Sec. 201. RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:

(1) A motor vehicle fuel tax rate of twenty-three cents per gallon ((~~shall apply~~)) applies to the sale, distribution, or use of motor vehicle fuel.

(2) Beginning October 1, 2002, an additional and cumulative motor vehicle fuel tax rate of four cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(3) Beginning April 1, 2003, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

Sec. 202. RCW 46.68.090 and 1999 c 269 s 2 and 1999 c 94 s 6 are each reenacted and amended to read as follows:

(1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for purposes enumerated in (a) and (b) of this subsection. The remaining net tax amount shall be distributed monthly by the state treasurer in ((~~the proportions set forth in (c) through (l) of this~~)) accordance with subsections (2) through (4) of this section.

(a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;

(b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly((;)).

((~~(c)~~)) (2) All of the remaining net tax amount collected under RCW 82.36.025(1) and 82.38.030(1) must be distributed in the proportions set forth in (a) through (j) of this subsection.

(a) For distribution to the motor vehicle fund an amount equal to 44.387 percent to be expended for highway purposes of the state, as defined in RCW 46.68.130;

((~~(d)~~)) (b) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.

The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:

(i) Accident experience;

(ii) Fatal accident experience;

(iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and

(iv) Continuity of development of the highway transportation network.

Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection ((~~(1)(d)~~)) (2)(b);

((~~(e)~~)) (c) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;

((~~(f)~~)) (d) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;

((~~(g)~~)) (e) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent;

((~~(h)~~)) (f) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent and expended in accordance with RCW 47.26.086;

((~~(i)~~)) (g) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent in accordance with RCW 46.68.110;

((~~(j)~~)) (h) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent: (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

((~~(k)~~)) (i) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;

((~~(l)~~)) (j) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent and expended in accordance with RCW 36.79.020.

((~~(2)~~)) (3)All the remaining net tax amount collected under the additional tax rates levied under RCW 82.36.025 (2) and (3) and 82.38.030 (2) and (3) must be distributed to the motor vehicle fund.

(4) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

NEW SECTION. Sec. 203. A new section is added to chapter 46.68 RCW to read as follows:

There is hereby created the freight mobility strategic investment account. All money deposited in the account shall be used by the department of transportation for:

(1) Improving the freight transportation highway system by constructing projects selected by the freight mobility strategic investment board.

(2) The department may pledge any money in the freight mobility strategic investment account for debt service on bonds issued to finance projects authorized under subsection (1) of this section.

(3) Money in the freight mobility strategic investment account of the motor vehicle fund that is not required by the department for payment of principal or interest on bond issues or for any of the other purposes authorized in this section may be invested by the treasurer in bonds and obligations of the nature eligible for the investment of current state funds as provided in RCW 43.84.080.

Sec. 204. RCW 82.38.030 and 2001 c 270 s 6 are each amended to read as follows:

(1) There is hereby levied and imposed upon special fuel users a tax at the rate ((~~computed in the manner provided in RCW 82.36.025 on each~~)) of twenty-three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature.

(2) Beginning October 1, 2002, an additional and cumulative special fuel tax rate of four cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature is imposed on special fuel users.

(3)February 27, 2002, Beginning April 1, 2003, an additional and cumulative special fuel tax rate of three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature is imposed on special fuel users.

(5) The tax ((~~imposed by subsection (1) of this section~~)) is imposed when:

(a) Special fuel is removed in this state from a terminal if the special fuel is removed at the rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(b) Special fuel is removed in this state from a refinery if either of the following applies:

(i) The removal is by bulk transfer and the refiner or the owner of the special fuel immediately before the removal is not a licensee; or

(ii) The removal is at the refinery rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(i) The entry is by bulk transfer and the importer is not a licensee; or

(ii) The entry is not by bulk transfer;

(d) Special fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the special fuel;

(e) Blended special fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended special fuel subject to tax is the difference between the total number of gallons of blended special fuel removed or sold and the number of gallons of previously taxed special fuel used to produce the blended special fuel;

(f) Dyed special fuel is used on a highway, as authorized by the internal revenue code, unless the use is exempt from the special fuel tax;

(g) Special fuel purchased by an international fuel tax agreement licensee under RCW 82.38.320 is used on a highway; and

(h) Special fuel is sold by a licensed special fuel supplier to a special fuel distributor, special fuel importer, or special fuel blender and the special fuel is not removed from the bulk transfer-terminal system.

((~~(3)~~)) (6) The tax imposed by this chapter, if required to be collected by the licensee, is held in trust by the licensee until paid to the department, and a licensee who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW. A person, partnership, corporation, or corporate officer who fails to collect the tax imposed by this section, or who has collected the tax and fails to pay it to the department in the manner prescribed by this chapter, is personally liable to the state for the amount of the tax.

Sec. 205. RCW 82.38.035 and 2001 c 270 s 7 are each amended to read as follows:

(1) A licensed supplier shall remit tax on special fuel to the department as provided in RCW 82.38.030((~~(2)~~)) (5)(a). On a two-party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer shall remit the tax.

(2) A refiner shall remit tax to the department on special fuel removed from a refinery as provided in RCW 82.38.030((~~(2)~~)) (5)(b).

(3) An importer shall remit tax to the department on special fuel imported into this state as provided in RCW 82.38.030((~~(2)~~)) (5)(c).

(4) A blender shall remit tax to the department on the removal or sale of blended special fuel as provided in RCW 82.38.030((~~(2)~~)) (5)(e).

(5) A dyed special fuel user shall remit tax to the department on the use of dyed special fuel as provided in RCW 82.38.030((~~(2)~~)) (5)(f).

Sec. 206. RCW 82.38.045 and 1998 c 176 s 54 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030((~~(1)~~)) if, at the time of removal:

(1) The position holder with respect to the special fuel is a person other than the terminal operator and is not a licensee;

(2) The terminal operator is not a licensee;

(3) The position holder has an expired internal revenue service notification certificate issued under chapter 26, C.F.R. Part 48; or

(4) The terminal operator had reason to believe that information on the notification certificate was false.

Sec. 207. RCW 82.38.047 and 1998 c 176 s 55 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030((~~(1)~~)) if, in connection with the removal of special fuel that is not dyed or marked in accordance with internal revenue service requirements, the terminal operator provides a person with a bill of lading, shipping paper, or similar document indicating that the special fuel is dyed or marked in accordance with internal revenue service requirements.

Sec. 208. RCW 82.38.075 and 1983 c 212 s 1 are each amended to read as follows:

In order to encourage the use of nonpolluting fuels, an annual license fee in lieu of the tax imposed by RCW 82.38.030 shall be imposed upon the use of natural gas as defined in this chapter or on liquified petroleum gas, commonly called propane, which is used in any motor vehicle, as defined in RCW 46.04.320, which shall be based upon the following schedule as adjusted by the formula set out below:

VEHICLE TONNAGE (GVW) FEE

0 - 6,000 $ 45

6,001 - 10,000 $ 45

10,001 - 18,000 $ 80

18,001 - 28,000 $110

28,001 - 36,000 $150

36,001 and above $250

To determine the actual annual license fee imposed by this section for a registration year, the appropriate dollar amount set out in the above schedule shall be multiplied by the ((~~motor vehicle~~)) special fuel tax rate ((~~in cents per gallon~~)) as established by RCW ((~~82.36.025~~)) 82.38.030 effective on July 1st of the preceding calendar year and the product thereof shall be divided by 12 cents.

The department of licensing, in addition to the foregoing fee, shall charge a further fee of five dollars as a handling charge for each license issued.

The director of licensing shall be authorized to prorate the vehicle tonnage fee so that the annual license required by this section will correspond with the staggered vehicle licensing system.

A decal or other identifying device issued upon payment of these annual fees shall be displayed as prescribed by the department as authority to purchase this fuel.

Persons selling or dispensing natural gas or propane may not sell or dispense this fuel for their own use or the use of others into tanks of vehicles powered by this fuel which do not display a valid decal or other identifying device as provided in this section.

Vehicles registered in jurisdictions outside the state of Washington are exempt from this section.

Any person selling or dispensing natural gas or propane into the tank of a motor vehicle powered by this fuel, except as prescribed in this chapter, is subject to the penalty provisions of this chapter.

Sec. 209. RCW 43.84.092 and 2001 2nd sp.s. c 14 s 608, 2001 c 273 s 6, 2001 c 141 s 3, and 2001 c 80 s 5 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public health supplemental account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the freight mobility strategic investment account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

PART III - SALES TAX ON MOTOR VEHICLES

Sec. 301. RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price. A portion of the tax collected under this subsection (1) on each retail sale of a motor vehicle, as defined in RCW 46.04.320, must be deposited in the multimodal transportation account created in RCW 47.66.070. The amounts deposited in the multimodal transportation account will be:

(a) Effective July 1, 2005, through June 30, 2006, one-tenth of one percent of the selling price;

(b) Effective July 1, 2006, through June 30, 2007, two-tenths of one percent of the selling price;

(d) Effective July 1, 2008, through June 30, 2009, four-tenths of one percent of the selling price;

(e) Effective July 1, 2009, and thereafter, five-tenths of one percent of the selling price.

(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.

(3) The taxes imposed under this chapter shall apply to successive retail sales of the same property.

(4) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 302. RCW 82.12.020 and 1999 c 358 s 9 are each amended to read as follows:

(1) There is hereby levied and there shall be collected from every person in this state a tax or excise for the privilege of using within this state as a consumer: (a) Any article of tangible personal property purchased at retail, or acquired by lease, gift, repossession, or bailment, or extracted or produced or manufactured by the person so using the same, or otherwise furnished to a person engaged in any business taxable under RCW 82.04.280 (2) or (7); or (b) any canned software, regardless of the method of delivery, but excluding canned software that is either provided free of charge or is provided for temporary use in viewing information, or both.

(2) This tax shall apply to the use of every service defined as a retail sale in RCW 82.04.050(3)(a) and the use of every article of tangible personal property, including property acquired at a casual or isolated sale, and including byproducts used by the manufacturer thereof, except as hereinafter provided, irrespective of whether the article or similar articles are manufactured or are available for purchase within this state.

(3) Except as provided in RCW 82.12.0252, payment by one purchaser or user of tangible personal property or service of the tax imposed by chapter 82.08 or 82.12 RCW shall not have the effect of exempting any other purchaser or user of the same property or service from the taxes imposed by such chapters.

(4) The tax shall be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rates in effect for the retail sales tax under RCW 82.08.020.

(5) A portion of the use tax revenue collected on the rate provided in RCW 82.08.020(1) (a) through (e) will be deposited in the multimodal transportation account under RCW 47.66.070.

NEW SECTION. Sec. 303. A new section is added to chapter 82.32 RCW to read as follows:

(1) The tax imposed and collected under chapters 82.08 and 82.12 RCW on highway projects qualifying under this subsection (1), less any credits allowed under chapter 82.14 RCW, must be transferred to the multimodal transportation account under RCW 47.66.070. A highway project qualifies under this section if it is constructed in whole or in part with funds:

(a) Collected under RCW 82.36.025 (2) or (3); or

(b) Obtained through the sale of bonds authorized by this act.

(2) This transaction is exempt from the requirements in RCW 43.135.035(4).

(3) The department of transportation shall report the amount of sales or use tax eligible for transfer under this section to the department of revenue.

PART IV - BOND AUTHORIZATION

NEW SECTION. Sec. 401. In order to provide funds necessary for the location, design, right of way, and construction of selected state and local highway improvements, there shall be issued and sold upon the request of the transportation commission a total of three billion five hundred million dollars of general obligation bonds of the state of Washington.

NEW SECTION. Sec. 402. Upon the request of the transportation commission, as appropriate, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 46.68.090 in accordance with chapter 39.42 RCW. Bonds authorized by section 401 of this act shall be sold in the manner, at time or times, in amounts, and at the price as the state finance committee shall determine. No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

NEW SECTION. Sec. 403. The proceeds from the sale of bonds authorized by section 401 of this act shall be deposited in the motor vehicle fund. The proceeds shall be available only for the purposes enumerated in section 401 of this act, for the payment of bond anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting.

NEW SECTION. Sec. 404. Bonds issued under the authority of section 401 of this act shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal and interest on the bonds shall be first payable from the proceeds of the state excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW. Proceeds of these excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of RCW 47.10.843 through 47.10.848, and the legislature agrees to continue to impose these excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of section 401 of this act.

NEW SECTION. Sec. 405. Both principal and interest on the bonds issued for the purposes of section 401 of this act shall be payable from the highway bond retirement fund. The state finance committee may provide that a special account be created in the fund to facilitate payment of the principal and interest. The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on the bonds in accordance with the bond proceedings. The state treasurer shall withdraw revenues from the motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund, such amounts, and at such times, as are required by the bond proceedings.

Any funds required for bond retirement or interest on the bonds authorized by section 401 of this act shall be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels and that is, or may be, appropriated to the department of transportation for state highway purposes. Funds required shall never constitute a charge against any other allocations of motor vehicle fuel and special fuel tax revenues to the state, counties, cities, and towns unless the amount arising from excise taxes on motor vehicle and special fuels distributed to the state in the motor vehicle fund proves insufficient to meet the requirements for bond retirement or interest on any such bonds.

Any payments for bond retirement or interest on the bonds taken from other revenues from the motor vehicle fuel or special fuel taxes that are distributable to the state, counties, cities, and towns shall be repaid from the first revenues from the motor vehicle fuel or special fuel taxes distributed to the motor vehicle fund not required for bond retirement or interest on the bonds.

NEW SECTION. Sec. 406. Bonds issued under the authority of section 401 of this act and this section and any other general obligation bonds of the state of Washington that have been or that may be authorized and that pledge motor vehicle and special fuels excise taxes for the payment of principal and interest thereon shall be an equal charge against the revenues from such motor vehicle and special fuels excise taxes.

NEW SECTION. Sec. 407. Sections 401 through 406 of this act are each added to chapter 47.10 RCW.

PART V - REFERENDUM

NEW SECTION. Sec. 501. (1) The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at a special election to be held in this state on or before June 20, 2002, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation. The special election shall be limited to submission of this act to the people.

(2) If the people ratify this act, revenues generated shall be spent as detailed in House Bill No. . . . ., the 2001-03 state supplemental transportation budget. The primary emphasis of revenues raised shall be improving transportation safety, reducing congestion, and improving the movement of freight and goods. The legislature recognizes that the projects detailed in House Bill No. . . . . are based on assumptions that are beyond the legislature's control, such as availability of federal funds, interest rates, required public approval for certain projects, etc., and furthermore, that current laws authorize the state transportation commission to make necessary adjustments to the proposed projects as unforeseen circumstances may require. If additional funding for the projects contained in House Bill No. . . . . becomes available, the legislature urges the acceleration of project construction wherever possible.

(3) The attorney general shall prepare the explanatory statement required by RCW 29.81.250 and transmit that statement regarding the referendum to the secretary of state no later than the last Monday of April before the special election.

(4) The secretary of state shall prepare and distribute a voters' pamphlet addressing this referendum measure following the procedures and requirements of chapter 29.81 RCW, except that the secretary of state may establish different deadlines for the appointment of committees to draft arguments for and against the referendum, for submitting arguments for and against the referendum, and for submitting rebuttal statements of arguments for and against the referendum.

(5) A county auditor may conduct the voting at this special election in all precincts of the county by mail using the procedures set forth in chapter 29.36 RCW.

(6) Notwithstanding the provisions of RCW 29.62.020, the county canvassing board in each county shall canvass and certify the votes cast at this special election in that county to the secretary of state no later than the seventh day following the election. Notwithstanding the provisions of RCW 29.62.120, the secretary of state shall canvass and certify the returns from the counties no later than the ninth day following the special election.

(7) The secretary of state shall reimburse each county for the cost of conducting the special election in that county in the same manner as state primary and general election costs are reimbursed under RCW 29.13.047 (1) and (3).

NEW SECTION. Sec. 502. If ratified by the people under section 501 of this act, sections 101 and 102 of this act take effect October 1, 2002.

NEW SECTION. Sec. 503. Section 501 of 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."

Correct the title.