WSR 97-07-069

PROPOSED RULES

DEPARTMENT OF LICENSING

[Filed March 19, 1997, 10:08 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-11-104.

Title of Rule: Chapter 308-57 WAC, Motor vehicle excise tax.

Purpose: Maintenance of rules pertaining to motor vehicle excise tax.

Statutory Authority for Adoption: RCW 46.01.110.

Statute Being Implemented: Chapters 82.44 and 82.50 RCW.

Summary: Amend rules to be compatible with amendments enacted to motor vehicle excise tax laws.

Reasons Supporting Proposal: A review of the WAC chapter indicated the rules needed to be amended to be compatible with present language contained in chapters 82.44 and 82.50 RCW.

Name of Agency Personnel Responsible for Drafting: Marlene Epp, 1125 Washington Street S.E., Olympia, WA, (360) 902-3823; Implementation: Eric Anderson, 1125 Washington Street S.E., Olympia, WA, (360) 902-4045; and Enforcement: Nancy Kelly, 1125 Washington Street S.E., Olympia, WA, (360) 902-3754.

Name of Proponent: Department of Licensing, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: New section WAC 308-57-135, establishing excise tax fee schedule four for use on combination power units.

Proposal Changes the Following Existing Rules: Repealing WAC 308-57-220, effective date of rule has expired; WAC 308-57-250, rule is based on an RCW provision that has been repealed; WAC 308-57-310 and 308-57-320, rule is no longer applicable; WAC 308-57-410 and 308-57-440, rule is not applicable; and WAC 308-57-420 and 308-57-430, duplication of RCW provision.

Amending WAC 308-57-005, adding definitions for excise tax fee schedule four, five and six and making administrative amendments; WAC 308-57-010, adding excise tax fee schedules four and six; WAC 308-57-110, adding excise tax fee schedule five. Deleting vehicle classes not applicable to fee schedules one and five; WAC 308-57-120, adding excise tax fee schedule six. Deleting vehicle classes not applicable to fee schedules two and six; WAC 308-57-140, adding vehicle use classes exempt from motor vehicle excise tax. Making administrative amendments; and WAC 308-57-020, 308-57-030, 308-57-130, 308-57-210, 308-57-230 and 308-57-240, making administrative amendments.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required pursuant to RCW 19.85.939 [19.85.030]. The proposed rule making does not impose more than minor cost on businesses in a industry.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The contents of the proposed rules are explicitly and specifically dictated by statute.

Hearing Location: Highways-Licenses Building, Conference Room 303, 1125 Washington Street S.E., Olympia, WA, on May 7, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Jack Lince by May 6, 1997, TDD (360) 664-8885.

Submit Written Comments to: Jack L. Lince, Contracts Manager, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, FAX (360) 664-0831, by May 6, 1997.

Date of Intended Adoption: May 14, 1997.

March 18, 1997

Nancy Kelly, Administrator

Title and Registration Services

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-005 Definitions. The following definitions apply to the terminology used in this chapter:

(1) (("Department" means the department of licensing.

(2))) "Excise tax ((depreciation)) fee schedule one" means the ((statutory)) depreciation table ((as)) described in RCW 82.44.041 (3)(b).

(((3))) (2) "Excise tax ((depreciation)) fee schedule two" means the ((statutory)) depreciation table ((as)) described in RCW 82.44.041(1).

(((4))) (3) "Excise tax ((depreciation)) fee schedule three" means the ((statutory)) depreciation table ((as)) described in RCW 82.50.425(2).

(((5))) (4) "Excise tax fee schedule four" means the depreciation table established for power units towing trailers with permanent plates issued in accordance with RCW 46.16.068.

(5) "RTA excise tax fee schedule five" means the depreciation table described in RCW 82.44.041 (3)(b) for use in the Central Puget Sound Regional Transit Authority area.

(6) "RTA excise tax fee schedule six" means the depreciation table described in RCW 82.44.041(1) for use in the Central Puget Sound Regional Transit Authority area.

(7) "Fleet" means any person ((or any type of business entity who is a registered owner of)) with fifteen or more vehicles registered in the same name.

(((6))) (8) "Light duty truck" means a truck which is smaller than a truck type power unit. The empty scale weight is six thousand pounds or less. It includes vehicles such as pickup trucks, vans, and utility vehicles.

(((7))) (9) "MSRP" means the base manufacturer's suggested retail price as defined in RCW 82.44.041(3) and 82.50.425.

(((8) "One hundred ten percent rule" means the limit of excise tax increase pursuant to RCW 82.44.041.

(9))) (10) "Purchase price" means the selling price of the vehicle before deducting for trade-in value or adding sales/use tax.

(((10))) (11) "Registered within a county" means the county ((that)) which the vehicle registered owner indicates as ((it's)) their resident address.

(((11))) (12) "Tax code" means a two-digit alpha, numeric, or alpha-numeric representation of a value assigned by the department of revenue to passenger vehicles, ((motorhomes,)) light duty trucks, and ((motorhomes)) motor homes prior to vehicle model year 1986. This value represents the value of the vehicle when first offered for sale. In 1986 and thereafter, the MSRP is used to represent the value of the vehicle.

(((12))) (13) "Truck type power unit" means trucks as ((described)) defined in RCW ((82.44.041(1))) 82.44.010(3). This includes vehicles with ((CIR (circus),)) FIX (fixed load), or TOW (tow truck) use classes, regardless of scale weight; CMB (combination), COM (commercial), FAR (farm), FCB (farm combination), F/H (for hire), LOG (logging trucks), STA (stage), and ((other)) TRK (trucks whose empty scale weights exceed six thousand pounds and whose declared gross weight does not exceed twelve thousand pounds) use class. ((This also includes vehicles which would normally be considered light duty trucks but weigh more than six thousand pounds empty.

(13))) (14) "Truck type trailing unit" means trailers as ((described)) defined in RCW ((82.44.041(1))) 82.44.010(3). This includes trailers with ((CIR (circus), FIX (fixed load), C/G (converter gear))) CMB (combination), LOG (logging), and COM (commercial) use classes.

(((14))) (15) "Value code" means the value which is used to calculate the excise tax. In determining the value code, it may be a tax code, purchase price, assessor's appraisal, or MSRP.

(16) "Regional Transit Authority" or "(RTA)" means the Central Puget Sound Regional Transit Authority.

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-005, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-010 Premise for assessing excise tax. Truck type power units and trailing units are taxed according to the most recent purchase price and purchase year and the depreciation rates in excise tax ((depreciation)) fee schedules two, four or six. All other vehicles are taxed using the value of the vehicle when it was first offered for sale and the ((statutory depreciation rates)) appropriate excise tax fee schedule. Current physical condition, mileage, or monetary value of a particular vehicle is not used to determine excise tax.

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-010, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-020 Modified vehicles. All new or unused vehicles modified by a licensed ((primary or secondary)) manufacturer, ((such as a)) including but not limited to, van conversions ((or)), sport utility vehicles, and limousines, ((for example,)) shall be taxed according to the MSRP provided by the ((primary or secondary)) modifying manufacturer ((of the modified vehicle)). If the vehicle is modified by someone other than a licensed manufacturer, ((the department shall use)) the original MSRP ((of)) issued for the vehicle prior to the modifications plus the costs of the modifications shall be used.

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-020, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-030 Declaration of value. If there is no tax code for a model year 1985 or older model vehicle((s)) and there is no MSRP information available for a model year 1986 or newer model vehicle((s)), ((the department may require)) the owner may be required to provide a certified declaration of original value and supporting documentation to be used as the basis for assessing the excise tax. ((Documentation supporting this valuation may also be required as deemed necessary by the department.))

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-030, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-110 Excise tax ((depreciation)) fee schedules one and five. ((The following)) Vehicles with the following use classes ((shall be)) are taxed according to excise tax ((depreciation)) fee schedule one and when applicable, schedule five:

CAB (taxicab)

COM (commercial) (if powered and the scale weight is six thousand pounds or less)

CYC (motorcycle)

FAR (farm) (if powered and the scale weight is six thousand pounds or less)

F/H (for hire) (if six or fewer seats or if more than six seats and the scale weight is six thousand pounds or less)

((H/C (horseless carriage) (if the license fee is not based on gross weight or if the license fee is based on gross weight and the scale weight is six thousand pounds or less)))

MH (((motorhome))) (motor home)

PAS (passenger)

PER (nonpowered personal use trailer)

((RES (restored) (if the license fee is not based on gross weight or if the license fee is based on gross weight and the scale weight is six thousand pounds or less)))

STA (stage) (if six or fewer seats or if more than six seats and the scale weight is six thousand pounds or less)

TLR (nonpowered trailer)

TRK (if the scale weight is six thousand pounds or less)

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-110, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-120 Excise tax ((depreciation)) fee schedules two and six. ((The following)) Vehicles with the following use classes ((will be)) are taxed according to excise tax ((depreciation)) fee schedule two and when appropriate, schedule six:

((CIR (circus)))

FIX (fixed load)

((C/G (converter gear)))

COM (commercial) (if powered and the scale weight exceeds six thousand pounds or if nonpowered regardless of the scale weight)

F/H (for hire) (if more than six seats and the scale weight exceeds six thousand pounds)

FAR (farm) (if scale weight exceeds six thousand pounds)

((H/C (horseless carriage) (if the license fee is based on gross weight and the scale weight exceeds six thousand pounds)))

STA (stage) (if more than six seats and the scale weight exceeds six thousand pounds)

TRK (truck) (if the scale weight exceeds six thousand pounds),

TOW (powered tow truck)

LOG (powered logging truck)

LOG (nonpowered logging trailer/bunker)

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-120, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-130 Excise tax ((depreciation)) fee schedule three. ((A)) Vehicles with ((a)) the following use ((class of CMP (camper) or TVL (nonpowered travel trailer) shall be)) classes are taxed ((from)) according to excise tax ((depreciation)) fee schedule three((.)):

CMP (camper)

TVL (travel trailer, including tent trailers)

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-130, filed 1/29/91, effective 3/1/91.]

NEW SECTION

WAC 308-57-135 Excise tax fee schedule four. Powered vehicles with the following use classes are taxed according to excise tax fee schedule four:

CMB (combination power units, if the declared combined gross weight is greater than forty thousand pounds)

FCB (farm combination power units, if the declared combined gross weight is greater than forty thousand pounds)

[]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-140 Excise tax exemptions. The following vehicles are exempt from ((payment of)) excise ((tax)) taxes imposed in chapters 82.44 and 82.50 RCW:

(1) ((Any)) Vehicles with ((a)) tax code ((of)) 95 (vehicles taxed as personal property, such as ((a)) mobile homes);

(2) ((Any)) Vehicles with the following use classes: EX (exempt), FED (federally owned), FEX (farm exempt), H/D (house moving dolly), PED (moped), ORV (off road vehicle), SCH (private school), SNO (snowmobile), or SNX (exempt snowmobile);

(3) ((Any)) Vehicles registered ((in accordance with)) pursuant to WAC 308-96A-050, ((for)) (nonresident members of the armed forces);

(4) ((Any)) Vehicles registered ((in accordance with)) pursuant to WAC 308-96A-400, ((for members of Washington)) (Indian tribes and ((reservations recognized by the United States Department of the Interior)) tribal members);

(5) ((Any)) Vehicles registered ((in accordance with)) pursuant to WAC 308-96A-046, ((for disabled American veterans, former prisoners of war or their spouses)) (veteran's free license);

(6) Vehicles registered pursuant to WAC 308-96A-180, (rental cars);

(7) Passenger motor vehicles registered pursuant to WAC 308-96A-175 and 308-96A-176, ride-sharing and transportation needs ride-sharing vehicles; and

(8) Vehicles registered pursuant to WAC 308-96A-063, Foreign organization special license plate.

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-140, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-210 Excise tax in even dollars. ((The)) Individual vehicle excise ((tax shall be)) taxes are rounded to the nearest whole dollar ((for a twelve-month period)).

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-210, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 92-15-024, filed 7/6/92, effective 8/6/92)

WAC 308-57-230 Fleet abatement. A fleet vehicle, which is required to have a December registration expiration date, shall be charged excise tax based on the current depreciation rate for the number of months required to license through December 31 of the current year. If the ((vehicle is registered for the following year at the same time)) number of months to December 31 is fewer than four, an additional twelve months excise tax ((shall)) will be charged at the ((following year's)) current depreciation rate.

[Statutory Authority: RCW 46.01.110. 92-15-024, 308-57-230, filed 7/6/92, effective 8/6/92. Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-230, filed 1/29/91, effective 3/1/91.]

AMENDATORY SECTION (Amending WSR 91-04-026, filed 1/29/91, effective 3/1/91)

WAC 308-57-240 Nonfleet abatement. With department approval, the owner of a nonfleet vehicle may change the vehicle's registration expiration date. The owner shall be ((charged)) assessed excise tax based on the current depreciation rate for ((twelve months plus)) the number of months ((in excess of twelve to extend the registration period to the desired)) from the current expiration to the requested expiration date. ((Those months in excess of twelve shall be charged at the next year's depreciation rate. This option requires that)) The new expiration date must be greater than twelve months but not more than eighteen months from the current registration expiration date. New expiration dates may only be granted when validation tabs for the desired month and year are available ((and the total number of months may not exceed eighteen)).

[Statutory Authority: RCW 46.01.110 and 43.17.060. 91-04-026, 308-57-240, filed 1/29/91, effective 3/1/91.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 308-57-220 13-month leases.

WAC 308-57-250 Rental car abatement.

WAC 308-57-310 Use class and one hundred ten percent rule.

WAC 308-57-320 Trucks and one hundred ten percent rule.

WAC 308-57-410 Appeal process.

WAC 308-57-420 Taxes to be paid before appeal.

WAC 308-57-430 Effective date for appeals.

WAC 308-57-440 Hearings officer.

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