Inquiry of the Week (8/30/99)

Question:

Request for summary of statutes that would be repealed if Initiative 695 were approved in the November election.

Answer:

Section 3 of Initiative 695 sets out 44 statutes that would be repealed if the voters approve the initiative November 2. Of particular significance are sections RCW 46.16.060, which repeals the current license fee (which would be replaced by the proposed uniform $30 fee); RCW 82.44.020, which imposes the 2.2 percent motor vehicle excise tax; RCW 82.44.110, 82.44.150 and 82.44.155, which provide for the distribution of the motor vehicle excise tax; RCW 82.44.130, which will by being repealed have the effect of making motor vehicles subject to ad valorem tax; RCW 82.50.410, which imposes a 1.1 percent travel trailer and camper tax; and RCW 82.50.510, which provides for the distribution of the trailer/camper excise tax.

The following provides a brief summary of the statutes scheduled for repeal by the initiative:

1. RCW 46.16.060. Establishes an annual vehicle license fee of $27.75. However, if the vehicle was previously licensed in Washington and not elsewhere, the fee is $23.75. An additional 50-cent fee is added to the license fee for payment into the Department of Licensing services account. The section also establishes a $29.75 annual fee for house-moving dollies, used to move buildings or homes on a highway under special permit. The fees imposed by this section do not apply to trucks, buses, for-hire vehicles, commercial trailers, and pole trailers,

2. RCW 46.16.061. Establishes an additional 10-cent fee on vehicles (not trucks, buses, commercial trailers, etc.). The proceeds of this fee are to be used by the Legislative Transportation Committee and the Department of Transportation for special highway studies and other studies provided by law.

3. RCW 46.16.650. Establishes an additional one dollar per license plate fee for the purchase of license plates by new vehicle registrants.

4. RCW 82.44.010. Provides definitions for the terms "Department," "motor vehicle," and "truck-type power or trailing unit" for use in chapter 82.44 RCW, dealing with the motor vehicle excise tax. The definition of the term "motor vehicle" specifically excludes certain vehicles (dock and warehouse tractors, lumber carriers ("spiders"), motor vehicles used entirely on private property, motor vehicles owned by nonresident military personnel, and vehicles with exempt licenses), thus also excluding such vehicles from application of the motor vehicle excise tax.

5. RCW 82.44.015. Provides tax exemption from motor vehicle excise tax for ride-sharing passenger motor vehicles.

6. RCW 82.44.020. Imposes basic excise tax on motor vehicles (2.2 percent of vehicle's value) plus clean air excise tax ($2.00). Also imposes excise tax on truck-type power units (.58 percent of the vehicle's value).

7. RCW 82.44.022. Establishes a credit against motor vehicle excise tax for personal-use vehicles equal to the lesser of the tax or $30.

8. RCW 84.22.023. Exempts rental cars from the motor vehicle excise tax.

9. RCW 82.44.025. Exempts vehicles of the Taipei Economic and Cultural Office from the motor vehicle excise tax.

10. RCW 82.44.030. Establishes $2.00 excise tax on dealer's license plates.

11. RCW 82.44.041. Establishes formula for determining value of vehicles for use in calculating motor vehicle excise tax. For the first year of service of a non-truck vehicle, the value equals 100 percent of the suggested retail price, excluding taxes, transportation, preparation costs, and optional equipment; the applicable percentage drops to 52 percent after 7 years and to 10 percent after 12 years. Special rules are established for vehicles whose suggested retail price is either unavailable or unascertainable.

12. RCW 82.44.060. Payment of the excise tax is due at the time the vehicle is registered and licensed or when the license and registration is renewed. Special rules apply to vehicles having dealer's licenses or which are proportionally registered. No additional tax is required to be paid upon the transfer of vehicle ownership if the excise tax has already been paid for the year in which the transfer occurs.

13. RCW 82.44.065. Provides mechanism (Administrative Procedures Act) by which person may appeal department of license's valuation of vehicle determined under RCW 82.44.041.

14. RCW 82.44.080. Advises that motor vehicle excise tax is additional to all other licenses and taxes that may be imposed.

15. RCW 82.44.090. Makes it criminal to issue license without first collecting motor vehicle excise tax.

16. RCW 82.44.100. Requires county auditor to give a receipt showing the motor vehicle excise tax has been paid.

17. RCW 82.44.110. Provides for disposition of the revenue raised by the motor vehicle excise tax: 1.71 percent to department of licensing to defray administrative costs; 8.712 percent for Puget Sound capital construction; 4.351 percent to Puget Sound ferry operations; 6.286 percent to the city police and fire protection assistance account; 5.628 percent into the municipal sales and use tax equalization account; 1.71 percent into the county sales and use tax equalization account; 51.203 percent into the transportation fund for transportation purposes and activities (planning, development of capital projects, high capacity transportation systems, high occupancy vehicle lanes, or public transportation system contribution matches required by federal or transportation improvement board programs); 3.892 percent for county criminal justice assistance account; .778 percent for municipal criminal justice assistance account distributions under RCW 82.14.320; .778 percent for municipal criminal justice assistance account distributions under RCW 82.14.330; 3.153 percent for the county public health account; 10.422 percent into the motor vehicle fund; 1.377 percent into the distressed county assistance account.

18. RCW 82.44.120. Provides that if person is entitled to refund of vehicle license fee, he or she is also entitled to refund of excise tax. If there has been an overpayment of $10 or more, the refund will be made (conversely, if there has been an underpayment, the department will seek payment.) A claim for a refund must be filed within three years of payment. Any person who makes a false statement to receive a refund for which he or she is not entitled is guilty of a gross misdemeanor.

19. RCW 82.44.130. Provides that no motor vehicle shall be listed or assessed for ad valorem taxation "so long as this chapter remains in effect."

20. RCW 82.44.140. Duties required of county auditor by chapter may be performed by any other person designated by the director of licensing.

21. RCW 82.44.150. Provides that the director of licensing shall notify the state treasurer of the amount of excise tax remitted during the prior quarter. Provides computation for determining a municipality's share of the motor vehicle excise tax. Provides for quarterly distribution of the excise tax: to the high capacity transportation account for mass rapid transit or passenger ferries; to the central Puget Sound public transportation systems account; and to the public transportation systems account for other counties. Provides for the distribution of excise tax monies collected under RCW 3.58.273. Recipients must provide an annual report to the department of licensing.

22. RCW 82.44.155. Provides for ratable distribution of the motor vehicle excise tax on basis of population to city police and fire protection assistance account for police and fire protection.

23. RCW 82.44.157. Funds distributed to cities or towns may be transferred to another unit of local government under government service agreement.

24. RCW 82.44.160. Provides for annual distribution of motor vehicle excise tax monies to the municipal research council. The distribution comes from city police and fire protection account monies and from the municipal sales and use tax equalization tax account. Monies are to be used for studies and research in municipal government, publications, educational, conferences, and in furnishing technical, consultative, and field services to cities and towns in problems relating to planning, public health, municipal sanitation, fire protection, law enforcement, postwar improvements, public works, and in all matters relating to city and town government.

25. RCW 82.44.170. Provides formula for reporting of motor vehicle excise tax from any IRP (International Registration Plan) jurisdiction where excise tax monies are commingled with license fees.

26. RCW 82.44.180. Creates the "transportation fund" in the state treasury into which motor vehicle excise tax and travel trailers and campers excise tax monies are deposited. Monies may only be used if appropriated and are limited to transportation purposes and activities and for the state patrol (non-highway policing). Creates central Puget Sound public transportation account within transportation account for allocation by transportation improvement board to public transportation improvements in the region. Creates public transportation systems account in the transportation account for planning, capital projects development, high capacity transportation systems, high occupancy vehicle lanes and facilities, other related roadway projects, and for project funding matches.

27. RCW 82.44.900. Establishes a "severability clause" for the provisions of chapter 82.44 RCW (e.g., if one section is found unconstitutional, other sections, in most instances, remain unaffected).

28. RCW 82.50.010. Provides definitions for chapter 82.50 RCW, relating to the travel trailers and campers excise tax.

29. RCW 82.50.060. Provides that travel trailers and campers excise tax is additional to all other licenses and taxes.

30. RCW 82.50.090. Makes it unlawful for county auditor to issue a receipt for the tax without actually collecting the tax.

31. RCW 82.50.170. Provides that person who has erroneously paid travel trailers excise tax may, within 13 months, apply in writing for a refund. Provides for payment (or collection) of tax amount erroneously paid or received, if the amount exceeds $10. A false statement made in effort to collect a refund is a gross misdemeanor.

32. RCW 82.50.250. Term "house trailer" should be construed to include "mobile home and travel trailer."

33. RCW 82.50.400. Imposes annual excise tax on travel trailers and campers, to be paid at time of registration. License plates may not be issued until tax paid. Persons who would otherwise be liable for tax but who license in another state are guilty of a gross misdemeanor. Department of licensing can assess and collect unpaid tax plus penalties and interests.

34. RCW 82.50.405. Imposes an additional $2.00 clean air excise tax on travel trailers and campers. Tax is payable at time of annual vehicle registration; no license may be issued without payment of tax. No additional tax need be paid upon transfer during the registration year, if tax has already been paid.

35. RCW 82.50.410. Sets travel trailer and campers excise tax rate at 1.1 percent of the value of the trailer or camper. Provides for dealer license plates (excise tax of $2.00).

36. RCW 82.50.425. Establishes formula for determining value of travel trailers and campers for use is calculating excise tax. For the first year, the value equals 100 percent of the suggested retail price, excluding taxes, transportation and preparation costs, and optional equipment; the applicable percentage drops to 50 percent after 9 years and 20 percent after 15 years. Special rules are established for vehicles whose suggested retail price is unavailable or unascertainable.

37. RCW 82.50.435. Provides for appeal of department's determination of trailer or camper's value.

38. RCW 82.50.440. Requires county auditor or department of licensing to give a receipt showing tax has been paid, including the name of the taxpayer and a description of the travel trailer or camper.

39. RCW 82.50.460. Requires the director of the department of licensing to annually notify the trailer or camper owner of the amount of tax payable during the succeeding registration year, along with the due date.

40. RCW 82.50.510. County auditor shall regularly remit travel trailer and camper excise tax to state treasurer. Treasurer distributes the tax funds on a quarterly basis as follows: 13.64 percent to cities and towns; 13.64 percent to counties; 63.64 percent to schools; and 9.08 percent to the transportation fund (RCW 82.44.180).

41. RCW 82.50.520. Establishes exemptions from the travel trailer and campers excise tax: unoccupied trailers and campers when part of inventory; trailer or camper owned by government or political subdivision; trailer or camper owned by nonresident and licensed in another state; trailers eligible to be used with a dealer's license plate.

42. RCW 82.50.530. Provides that mobile homes, travel trailers and campers which are part of inventory, held for sale by a dealer, shall not be subject to ad valorem tax. (However, if park trailer has "substantially lost its identity as a mobile unit," permanently fixed in location, etc., it will consider real property and be subject to ad valorem tax.

43. RCW 82.50.540. Travel trailers and campers taxed and licensed under chapter 82.50 RCW shall be allowed to use public roads and highways, subject to motor vehicle laws.

44. RCW 82.50.901. Sets effective dates for various sections of chapter 82.50 RCW.

For more on Initiative 695 see our Initiative 695 Resource Center.