HB 2689

Brief Description: Requiring an electric motorcycle registration renewal fee.

Sponsors: Representatives Bergquist, Magendanz, Fitzgibbon, Walkinshaw, Kochmar, Rodne, Ryu, Gregerson and Tarleton.

Hearing Date: 2/3/14

Staff: Jerry Long (786-7306).

Background:

For Fiscal Year 2014 (FY), 62 electric motorcycles will pay the $100 electric vehicle fee implemented in 2012 (Engrossed House Bill 2660), and an estimated 69 will pay the fee in FY 2015. The renewal fee was implemented for electric vehicles that use propulsion units powered solely by electricity. The vehicle must be designed to have the capability to drive at a speed of more than 35 miles per hour. The fee applies to vehicle registration renewals that are due on or after February 1, 2013. This fee would expire on the effective date of legislation enacted by the Legislature that imposes a vehicle-miles-traveled fee or tax. The $100 fee is in addition to any other fees and taxes required at the time of annual registration renewal.

The fee was imposed to provide funds to mitigate the impact of vehicles on state roads and highways, and for the purpose of evaluating the feasibility of transitioning from a revenue collection system based on fuel taxes to a road user assessment system. Proceeds from the fee must be used for highway purposes, and must be deposited in the Motor Vehicle Fund.

If in any year the amount of proceeds from the fee collected under this section exceeds $1 million, the excess amount over $1 million must be deposited as follows:

• 70 percent to the Motor Vehicle Fund;

• 15 percent to the Transportation Improvement Account; and

• 15 percent to the Rural Arterial Trust Account.

Summary of Bill:

The bill reduces the existing electric motorcycle fee from $100 to $40 at the time of registration renewal.

Appropriation: None.

Fiscal Note: Available

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.