HOUSE BILL REPORT

HB 2216

As Reported by House Committee On:

Transportation

Title:  An act relating to vehicle license fees.

Brief Description:  Clarifying vehicle license fees and distribution thereof.

Sponsors:  Representatives Hankins and Fisher.

Brief History:

Committee Activity:

Transportation:  4/9/01, 4/30/01 [DPS].

Brief Summary of Substitute Bill

$Clarifies vehicle license fees and distributions.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. Signed by 23 members: Representatives Fisher, Democratic Co‑Chair; Mitchell, Republican Co‑Chair; Cooper, Democratic Vice Chair; Ericksen, Republican Vice Chair; Hankins, Republican Vice Chair; Lovick, Democratic Vice Chair; Ahern, Anderson, Edmonds, Hatfield, Hurst, Jackley, Jarrett, Marine, Morell, Murray, Ogden, Reardon, Rockefeller, Romero, Simpson, Wood and Woods.

Minority Report:  Without recommendation. Signed by 4 members: Representatives Armstrong, G. Chandler, Mielke and Sump.

Staff:  Jerry Long (786‑7306).

Background:

Initiative 695, approved by Washington voters in November 1999, would have eliminated motor vehicle excise taxes and set motor vehicle registration fees at $30.  When the initiative was held invalid by the courts, the 2000 Legislature set motor vehicle registration fees at $30. The State Patrol Highway Account received an increase in revenue from an average of $20.35 per license fee to an average $26.10.

However, due to a revised definition of ?motor vehicles,@ non-motorized trailers were exempt from the new base fee.

Summary of  Substitute Bill:

Restores the application of the $30 license tab fee to all vehicles.  It returns the Washington State Patrol=s share of the revenue from each original and renewal license fee to $20.35.  The distribution fee to the Puget Sound Ferry Account remains the same, the basis for calculation is changed from a percentage to a flat $2.02 of each vehicle license.  All remaining revenue will be deposited into the Motor Vehicle Account.

Substitute Bill Compared to Original Bill:

The implementation date for section 1 has been changed from July 1, 2001 to September 1, 2001 in order to give the Department of Licensing time to implement the legislation.  Section 2 will still be implemented on July 1, 2001.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date of Substitute Bill:  The bill takes effect on September 1, 2001, except for section 2 which contains an emergency clause and takes effect on July 1, 2001.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.