6582-S.E AMH COND H4505.1

ESSB 6582  - H AMD TO TR COMM AMD (H-4479.2/12)1243
     By Representative Condotta

OUT OF ORDER 03/03/2012

     On page 4, beginning on line 23 of the amendment, after "county" strike "based on the valuation schedules in RCW 82.44.035"

     On page 6, line 9 of the amendment, after "boundaries" strike "based on the valuation schedules in RCW 82.44.035"

     On page 6, after line 27 of the amendment, insert the following:

"NEW SECTION.  Sec. 6   A new section is added to chapter 82.44 RCW to read as follows:
     (1) The legislature finds that:
     (a) If a vehicle tax based on the value of the vehicle is imposed, vehicle owners have a right to a valuation schedule based on the vehicle's purchase price and not the manufacturer's suggested retail price; and
     (b) A motor vehicle excise tax must be calculated in an honest and accurate way so the burden on vehicle owners is not artificially inflated.
     (2) For the purpose of determining any motor vehicle excise tax otherwise authorized by law, any taxing district imposing a motor vehicle excise tax must set a vehicle's taxable value by using the depreciation schedule set forth in this section. The taxable value equals the product of a percentage based on a vehicle's year of service, as provided in subsection (3) of this section, and the latest purchase price of the vehicle. The purchase price for year of service is determined by the bill of sale provided by the buyer and seller, subject to the exemptions, exceptions, and definitions provided under this section, and which must be affirmed by declaration by both parties, to ensure an honest and accurate calculation of the tax and, combined with the appeal process in RCW 82.44.065, ensure that vehicle owners are taxed fairly.
     (3) For the purpose of determining the motor vehicle excise tax under this chapter, the value of a truck-type power or trailing unit, or motor vehicle, including a passenger vehicle, motorcycle, motor home, sport utility vehicle, or light duty truck is the latest purchase price of the vehicle, excluding applicable federal excise taxes, state and local sales or use taxes, transportation or shipping preparatory or delivery costs, multiplied by the following percentage based on year of service of the vehicle since its most recent sale. The year in which a purchase occurs is considered a first year of service.

YEAR OF SERVICEPERCENTAGE
1100
275
355
440
525
610
7 and over5


     (4) The reissuance of a certificate of title or vehicle registration for a truck-type power or trailing unit or motor vehicle, including a passenger vehicle, motorcycle, motor home, sport utility vehicle, or light duty truck because of the installation of the body or special equipment, must be treated as a sale, and the latest purchase price of the truck-type power or trailing unit or motor vehicle, including a passenger vehicle, motorcycle, motor home, sport utility vehicle, or light duty truck at that time, as determined by the department from such information as may be available, is considered its base value.
     (5) If the purchase price is unavailable or otherwise unascertainable or the reissuance of the certificate of title and vehicle registration is the result of a gift or inheritance, the department shall determine a value equivalent to the latest purchase price by using any information that may be available, including any guidebook, report, or compendium of recognized standing in the automotive industry or the selling price and year of sale of the vehicle. The department may use an appraisal by the county assessor. In valuing a vehicle for which the current value or selling price is not indicative of the value of similar vehicles of the same year and model, the department shall establish a value that more closely represents the average value of similar vehicles of the same year and model.
     (6) For the purposes of this chapter, the term "value" excludes value attributable to modifications of a motor vehicle and equipment that are designed to facilitate the use or operation of the motor vehicle by a person with disabilities.

NEW SECTION.  Sec. 7   RCW 82.44.035 (Valuation of vehicles) and 2010 c 161 s 910 & 2006 c 318 s 1 are each repealed.

Sec. 8   RCW 82.44.065 and 2010 c 161 s 912 are each amended to read as follows:
     If the department determines a value for a vehicle ((equivalent to a manufacturer's base suggested retail price)) under section 6 of this act or the value of a truck or trailer under ((RCW 82.44.035)) section 6 of this act, any person who pays a locally imposed tax for that vehicle may appeal the valuation to the department under chapter 34.05 RCW. If the taxpayer is successful on appeal, the department shall refund the excess tax in the manner provided in RCW 82.44.120."

     Renumber the remaining sections consecutively, correct any internal references accordingly, and correct the title.

EFFECT:  Repeals the existing local motor vehicle excise tax tables and implements a vehicle valuation process based on the last purchase price or the Department of Licensing establishing a value that more closely represents the average value of similar vehicles of the same year and model.

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