HOUSE BILL REPORT

HB 208

BYRepresentatives Appelwick, Taylor, Sprenkle, Holland and Sayan; by request of Department of Revenue

Modifying conveyance tax collection procedures.

House Committe on Ways & Means/Revenue

Majority Report:     The substitute bill be substituted therefore and the substitute bill do pass.  (10)

     Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Madsen, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE FEBRUARY 10, 1987

BACKGROUND:

At present, the Department of Revenue is responsible for collection of the conveyance tax, and for printing, distributing and accounting for conveyance tax stamps and receipts.  The department estimates that this activity costs approximately $46,000 per fiscal year, including the salaries and benefits of 1.5 FTE employees plus the costs associated with obtaining and distributing and conveyance tax stamps.

SUMMARY:

Responsibility for collection of the conveyance tax is transferred to the county treasurers.  The option of incorporating collection of the conveyance tax and the real estate excise tax into the same form and process is provided.  Sections of RCW 82.20 relating to conveyance tax stamps are repealed.  A process for redemption of outstanding conveyance tax stamps is provided, with a deadline of July 1, 1988.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill defines enforcement powers through the establishment of liens on property; interest rates against the amount of tax owed after 30 days; and other penalty provisions.

Revenue:   The bill has a revenue impact.

Fiscal Note:    Attached.

Effective Date:The bill contains an emergency clause and takes effect July 1, 1987.

House Committee ‑ Testified For:     Barney McClure, Department of Revenue.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Modifies conveyance tax collection procedures; places responsibility for collection to county treasurers and eliminates need for conveyance tax stamps.

House Committee - Testimony Against: None Presented.