HOUSE BILL REPORT

SSB 5107

As Amended by the House

BYSenate Committee on Transportation (originally sponsored by Senators Conner, Barr, Peterson, Patterson, Vognild, Bauer and Deccio)

Levying motor vehicle excise tax only for the actual license period.

House Committe on Transportation

Majority Report:  Do pass with amendments.  (22)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Cantwell, Cooper, Day, Doty, Fisch, Fisher, Gallagher, Hankins, Haugen, Heavey, Kremen, Prince, C. Smith, Spanel, Sutherland, Todd, Vekich, J. Williams and Zellinsky.

House Staff:Robin Rettew (786-7306)

AS PASSED HOUSE APRIL 14, 1987

BACKGROUND:

The vehicle registration year begins on the first day of the month in which a vehicle is registered, regardless of the day of the month on which it is registered.  For example, if the initial registration is transacted on March 28, the registration year is from March 1st to February 28th.  The motor vehicle excise tax is paid for the year at the time of registration.

SUMMARY:

The Department of Licensing and the Department of Revenue must, by January 1, 1988, propose to the legislature a method of vehicle registration which levies excise tax only for the effective registration period.

Revenue:    The original bill had a revenue impact--approximate loss of $3 million per year.  The bill as amended has a negligible impact.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Senator Paul Conner.

House Committee - Testified Against:      Janet Cunningham, Washington State New Car Dealers Association.

House Committee - Testimony For:    It is unfair to assess a use tax for a portion of a month.

House Committee - Testimony Against:      The fiscal impact of the bill, as originally drafted, is too great.