HOUSE BILL REPORT

EHB 1545

BYRepresentatives Schmidt, R. Fisher, Betrozoff, Jacobsen, Rust, Holland, Walk, Wood, H. Sommers, Walker, Sprenkle, Hankins, S. Wilson, Patrick, Smith, Haugen, Horn and Winsley; by request of Legislative Transportation Committee

Increasing penalties for registering a vehicle in another state.

House Committe on Transportation

Majority Report:  Do pass with amendments.  (24)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Betrozoff, Cantwell, Cooper, G. Fisher, R. Fisher, Gallagher, Hankins, Heavey, Jones, Kremen, R. Meyers, Nelson, Patrick, Prentice, Prince, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

House Staff:Louise Bray (786-7322)

AS PASSED HOUSE MARCH 8, 1989

BACKGROUND:

The Joint Committee on Motor Vehicle Excise Tax was created by Chapter 191, Laws of 1988.  The Committee was created to review the historical and current distributions of the tax, as well as administration, enforcement and collection of the tax.

The Committee consists of 12 legislators from the House and Senate Transportation and Fiscal Committees, plus three agency designees.

The Committee received testimony regarding motor vehicle tax fraud from the Washington State Patrol and the Department of Revenue.  The Committee found that residents of this state are intentionally registering their vehicles in other jurisdictions to evade payment of the motor vehicle excise tax, registration fees and sales tax.

The Committee recommended certain changes to the penalties for evading applicable motor vehicle taxes and fees.

SUMMARY:

BILL AS AMENDED:  The fine for initially failing to register a motor vehicle is doubled from $165 to $330.

It is a gross misdemeanor for a resident of this state to intentionally register his or her motor vehicle in another jurisdiction to evade payment of taxes and fees due the state, and is punishable by up to one year in the county jail and a fine equal to double the delinquent taxes and fees.  On second and subsequent offenses the fine is treble the amount of delinquent taxes and fees.

All persons who have failed to register may do so until September 1, 1989, without imposition of administrative penalties.  Traffic infraction and misdemeanor violations are not waived.

AMENDED BILL COMPARED TO ORIGINAL:  An effective date and amnesty provisions are added.

Fiscal Note:      Requested January 31, 1989.

House Committee ‑ Testified For:    Phil Peterson, Washington State Patrol.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The state is losing money because of individuals who intentionally register their vehicles in another jurisdiction to evade payment of taxes and fees due the state.  It is hoped that stiffer penalties will increase compliance.

House Committee - Testimony Against:      None Presented.