BILL REQ. #:  H-2629.1 

Read first time 04/14/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to the airplane excise tax; amending RCW 82.48.010, 82.48.020, 82.48.030, 82.48.070, 82.48.080, 82.48.110, 47.68.230, and 82.48.090; adding a new section to chapter 82.48 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 82.48.010 and 1995 c 318 s 4 are each amended to read as follows:
     For the purposes of this chapter, unless otherwise required by the context:
     (1) "Department" means the department of licensing.
     (2) "Aircraft" means any weight-carrying device or structure for navigation of the air which is designed to be supported by the air;
     (((2) "Secretary" means the secretary of transportation;))
     (3) "Person" includes a firm, partnership, limited liability company, or corporation((;
     (4) "Small multi-engine fixed wing" means any piston-driven multi-engine fixed wing aircraft with a maximum gross weight as listed by the manufacturer of less than seventy-five hundred pounds; and
     (5) "Large multi-engine fixed wing" means any piston-driven multi-engine fixed wing aircraft with a maximum gross weight as listed by the manufacturer of seventy-five hundred pounds or more)).

Sec. 2   RCW 82.48.020 and 2000 c 229 s 4 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)) constitutes the necessary evidence of aircraft use or intended use. ((The tax shall)) The amount of the tax is one percent of the taxable value of the aircraft, as determined under section 3 of this act less seventy-five thousand dollars.
     (2) The tax imposed under this section must be collected annually or under a staggered collection schedule as required by the ((secretary)) department 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))) (3) 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 imposed under this section are liable for ((such)) the unpaid excise tax. A violation of this subsection is a gross misdemeanor.
     (4) The department of revenue may, under chapter 82.32 RCW, assess and collect the unpaid excise tax imposed under ((chapter 82.32 RCW)) this section, including the penalties and interest provided in chapter 82.32 RCW.
     (((3))) (5) Except as provided under subsection((s (1) and (2))) (3) of this section, a violation of this chapter is a misdemeanor punishable as provided in chapter 9A.20 RCW.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.48 RCW to read as follows:
     (1)(a) Except as otherwise provided in this section, taxable value is based on the most recent purchase price of the aircraft, depreciated according to the year of the most recent purchase of the aircraft. For purposes of this subsection, "purchase price" means the consideration, whether money, credit, rights, or other property expressed in terms of money paid or given or contracted to be paid or given by the purchaser to the seller for the aircraft.
     (b) For aircraft for which the most recent purchase price was not indicative of the fair market value of the aircraft at the time of purchase, the department may appraise the aircraft. If the department appraises the aircraft, the taxable value is based on the department's appraisal of fair market value of the aircraft at the time of the most recent purchase, depreciated according to the year of the most recent purchase of the aircraft.
     (c) For aircraft acquired other than by purchase, including aircraft manufactured, constructed, or assembled by the owner, the department must appraise the aircraft before registration. In such cases, the taxable value is the fair market value at the time of the department's appraisal. For subsequent years, taxable value is based on the department's appraisal of fair market value of the aircraft, depreciated according to the year that the owner acquired the aircraft or, in the case of aircraft manufactured, constructed, or assembled by the owner, the year that the aircraft became operational.
     (2)(a) An appraisal conducted by the department:
     (i) Need not include a physical inspection of the aircraft; and
     (ii) May be based on any guidebook, report, or compendium of recognized standing in the aviation industry and information provided to the department by the owner of the aircraft.
     (b) Any aircraft owner disputing the department's appraised value under this section may petition for a conference with the department as provided under RCW 82.32.160 or for reduction of the tax due as provided under RCW 82.32.170.
     (3)(a) The department must prepare a depreciation schedule for use in the determination of the taxable value for the purposes of this chapter. The schedule must be based upon information available to the department pertaining to the current fair market value of aircraft.
     (b) The department must recommend a depreciation schedule to the fiscal committees of the senate and house of representatives by December 31, 2011, for enactment in law during the 2012 legislative session for use in the determination of taxable value for taxes due under this chapter during calendar year 2013 and subsequent calendar years.
     (4) The department may adopt any rules necessary to implement this section, including any rules necessary to provide a reasonable method or methods to determine the fair market value of an aircraft.
     (5) For purposes of this section, "department" means the department of revenue.

Sec. 4   RCW 82.48.030 and 1983 2nd ex.s. c 3 s 22 are each amended to read as follows:
     (1) ((The amount of the tax imposed by this chapter for each calendar year shall be as follows:

Sec. 5   RCW 82.48.070 and 1987 c 220 s 7 are each amended to read as follows:
     The ((secretary shall)) department must give a receipt to each person paying ((the)) excise tax under this chapter.

Sec. 6   RCW 82.48.080 and 1995 c 170 s 2 are each amended to read as follows:
     The ((secretary shall)) department must regularly pay to the state treasurer the excise taxes collected under this chapter((, which shall be credited by the state treasurer as follows: Ninety percent to the general fund and ten percent to the aeronautics account in the transportation fund for administrative expenses)) for deposit into the general fund.

Sec. 7   RCW 82.48.110 and 1967 ex.s. c 9 s 6 are each amended to read as follows:
     ((The first tax to be collected under this chapter shall be for the calendar year 1968.)) (1) No aircraft with respect to which the excise tax imposed by this chapter is payable ((shall)) may be listed and assessed for ad valorem taxation so long as this chapter remains in effect((, and any such assessment heretofore made except under authority of section 13, chapter 49, Laws of 1949 and section 82.48.110, chapter 15, Laws of 1961 is hereby directed to be canceled: PROVIDED, That)).
     (2) Any aircraft, whether or not subject to the provisions of this chapter, with respect to which the excise tax imposed by this chapter will not be paid or has not been paid for any year ((shall)) must be listed and assessed for ad valorem taxation in that year, and the ad valorem tax liability resulting from such listing and assessment ((shall)) must be collected in the same manner as though this chapter had not been passed((: PROVIDED FURTHER, That this chapter shall not be construed to affect any ad valorem tax based upon assessed valuations made in 1948 and/or any preceding year for taxes payable in 1949 or any preceding year, which ad valorem tax liability tax for any such years shall remain payable and collectible in the same manner as though this chapter had not been passed)).

Sec. 8   RCW 47.68.230 and 2005 c 341 s 1 are each amended to read as follows:
     (1) It ((shall be)) is unlawful for any person to operate or cause or authorize to be operated any civil aircraft within this state unless such aircraft has an appropriate effective certificate, permit, or license issued by the United States, if such certificate, permit, or license is required by the United States, and a current registration certificate issued by the ((secretary of transportation)) department of licensing, if registration of the aircraft with the department of ((transportation)) licensing is required by this chapter. It ((shall be)) is unlawful for any person to engage in aeronautics as an airman or airwoman in the state unless the person has an appropriate effective airman or airwoman certificate, permit, rating, or license issued by the United States authorizing him or her to engage in the particular class of aeronautics in which he or she is engaged, if such certificate, permit, rating, or license is required by the United States.
     (2) Where a certificate, permit, rating, or license is required for an airman or airwoman by the United States, it ((shall)) must be kept in his or her personal possession when he or she is operating within the state. Where a certificate, permit, or license is required by the United States or by this chapter for an aircraft, it ((shall)) must be carried in the aircraft at all times while the aircraft is operating in the state and ((shall)) must be conspicuously posted in the aircraft where it may be readily seen by passengers or inspectors. Such certificates ((shall)) must be presented for inspection upon the demand of any peace officer, or any other officer of the state or of a municipality or member, official, or employee of the department of transportation authorized pursuant to this chapter to enforce the aeronautics laws, or any official, manager, or person in charge of any airport, or upon the reasonable request of any person.

Sec. 9   RCW 82.48.090 and 1992 c 154 s 2 are each amended to read as follows:
     In case a claim is made by any person that the person has paid an erroneously excessive amount of excise tax under this chapter, the person may apply to the department of ((transportation)) licensing for a refund of the claimed excessive amount together with interest at the rate specified in RCW 82.32.060. The department of ((transportation shall)) licensing must review such application, and if it determines that an excess amount of tax has actually been paid by the taxpayer, such excess amount and interest at the rate specified in RCW 82.32.060 ((shall)) must be refunded to the taxpayer by means of a voucher approved by the department of ((transportation)) licensing and by the issuance of a state warrant drawn upon and payable from such funds as the legislature may provide for that purpose. No refund ((shall)) may be allowed, however, unless application for the refund is filed with the department of ((transportation)) licensing within ninety days after the claimed excessive excise tax was paid and the amount of the overpayment exceeds five dollars.

NEW SECTION.  Sec. 10   This act takes effect January 1, 2012.