Washington State House of Representatives	BILL ANALYSIS
Transportation Committee

HB 2216

Brief Description:  Clarifying vehicle license fees and distribution thereof.

Sponsors:  Representatives Hankins and Fisher.

Brief Summary of Bill

$Permanently deposits vehicle license fees into Motor Vehicle Fund.

Hearing Date:  4/9/01

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 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.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  The bill takes effect on July 1, 2001.