Notice of Committee and Senate Passage of Substitute Senate Bill 5137

Office of the Governor / Office of Financial Management sent this bulletin at 03/12/2019 12:52 PM PDT

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SSB 5137, titled AN ACT Relating to modifying the aircraft excise tax, has been passed by the Senate Committee on Transportation. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

Aircraft Excise Tax

2020

$ 61,000

2021

61,000

2022

61,000

2023

62,000

2024

62,000

2025

62,000

2026

63,000

2027

63,000

2028

63,000

2029

64,000

Total:

$ 622,000

Substitute Senate Bill 5137 includes new classifications in the excise tax schedule and raises taxes on existing aircraft; the tax increase for aircraft is varied depending on the size of the aircraft. The single engine aircraft tax is increased from $50 to up to $70. Multi-engine aircraft taxes are increased to make the schedule more progressive depending on the size of the aircraft, ranging from $85 to $120. Turbojet excise taxes range from $135 for single engine to $150 for multi-engine. Helicopter excise taxes will range from $65 to $120, depending on the type of engine. Drones weighing less than 55 pounds would be taxed at $15 drones weighing 55 or more pounds would be taxed at $30. The new $50 tax on electric aircraft would sunset January 1, 2039.

Cash receipts – determinate: Aviation Division records show some 6,600 registrations affected by the proposed tax increase, which when sorted by the various levels above would results in increased gross receipts of $61,000 annually. The effective date of the bill is January 1, 2020, and since the excise tax is due January 1 of each calendar year, fiscal year 2020 reflects a full year’s impact.

Cash receipts – indeterminate: There is some preliminary data available on “non-hobby” unmanned aircraft, but the Aviation Division has not yet confirmed that data with the Federal Aviation Administration (FAA). There is no data available for electric powered aircraft, so estimates would be speculative at this point. For example, if there were 1,000 small commercial unmanned aircraft paying the excise tax in Washington State, it would yield $15,000 in gross receipts annually, and 1,000 large commercial unmanned aircraft would yield $30,000 in gross receipts annually.

Note: This fiscal note reflects language in SSB 5137, 2019 Legislative Session.

CHANGE IN THIS PROPOSAL

-Definitions of large and small "multi-engine fixed wing" were deleted.

-Effective date has been specified to be January 1, 2020.

CURRENT LAW

Aircrafts as defined in RCW 82.48.010 that are used in the state are required to pay annual excise tax based on the types of aircraft defined in RCW 82.48.030.

PROPOSED

- The bill modifies the types of aircraft and the associated registration fees.

- It adds new types of aircrafts to RCW 82.48.030, such as gyrocopter, small and large commercial unmanned aircraft (i.e., drones).

- It defines “Electric equivalent” aircrafts with an expiration date for electric aircraft excise tax imposition to be January 1, 2039.

- There is no expiration date for excise tax being provided other than for "electric equivalent" aircrafts.

The Department of Transportation administers the aircraft excise tax. Therefore, this legislation results in no revenue impact to taxes administered by the Department of Revenue.

The following legislators voted do pass:

Senator Dean Takko
Democrat
(360) 786-7636
Dean.Takko@leg.wa.gov

Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov

Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov

Senator Annette Cleveland
Democrat
(360) 786-7696
Annette.Cleveland@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
Rebecca.Saldana@leg.wa.gov

Senator Claire Wilson
Democrat
(360) 786-7658
WILSON_CL@leg.wa.gov

Senator Emily Randall
Democrat
(360) 786-7650
RANDALL_EM@leg.wa.gov

Senator Liz Lovelett
Democrat
(360) 786-7678
Liz.Lovelett@leg.wa.gov

The following legislators voted to refer the bill without recommendation:

Senator Mike Padden
Republican
(360) 786-7606
Mike.Padden@leg.wa.gov

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Steve O'Ban
Republican
(360) 786-7654
Steve.OBan@leg.wa.gov

Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov

Not voting:

Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov

Senator Maureen Walsh
Republican
(360) 786-7630
Maureen.Walsh@leg.wa.gov

Senator Hans Zeiger
Republican
(360) 786-7648
Hans.Zeiger@leg.wa.gov

Senator John McCoy
Democrat
(360) 786-7674
John.McCoy@leg.wa.gov

Senator Lisa Wellman
Democrat
(360) 786-7641
Lisa.Wellman@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

SSB 5137, titled AN ACT Relating to modifying the aircraft excise tax, has been passed by the Senate. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

Aircraft Excise Tax

2020

$ 61,000

2021

61,000

2022

61,000

2023

62,000

2024

62,000

2025

62,000

2026

63,000

2027

63,000

2028

63,000

2029

64,000

Total:

$ 622,000

The following legislators voted yea:

Senator Steve Conway
Democrat
(360) 786-7656
Steve.Conway@leg.wa.gov

Senator Maureen Walsh
Republican
(360) 786-7630
Maureen.Walsh@leg.wa.gov

Senator Jim Honeyford
Republican
(360) 786-7684
Jim.Honeyford@leg.wa.gov

Senator Karen Keiser
Democrat
(360) 786-7664
Karen.Keiser@leg.wa.gov

Senator Brad Hawkins
Republican
(360) 786-7622
Brad.Hawkins@leg.wa.gov

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Sam Hunt
Democrat
(360) 786-7642
Sam.Hunt@leg.wa.gov

Senator Jeannie Darneille
Democrat
(360) 786-7652
DARNEILL_JE@leg.wa.gov

Senator John McCoy
Democrat
(360) 786-7674
John.McCoy@leg.wa.gov

Senator Bob Hasegawa
Democrat
(360) 786-7616
Bob.Hasegawa@leg.wa.gov

Senator Dean Takko
Democrat
(360) 786-7636
Dean.Takko@leg.wa.gov

Senator Shelly Short
Republican
(360) 786-7612
Shelly.Short@leg.wa.gov

Senator Christine Rolfes
Democrat
(360) 786-7644
Christine.Rolfes@leg.wa.gov

Senator Jamie Pedersen
Democrat
(360) 786-7628
Jamie.Pedersen@leg.wa.gov

Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov

Senator Judy Warnick
Republican
(360) 786-7624
Judith.Warnick@leg.wa.gov

Senator Marko Liias
Democrat
(360) 786-7640
Marko.Liias@leg.wa.gov

Senator Randi Becker
Republican
(360) 786-7602
Randi.Becker@leg.wa.gov

Senator Andy Billig
Democrat
(360) 786-7604
Andy.Billig@leg.wa.gov

Senator David Frockt
Democrat
(360) 786-7690
David.Frockt@leg.wa.gov

Senator Jeff Holy
Republican
(360) 786-7610
Jeff.Holy@leg.wa.gov

Senator Mark Mullet
Democrat
(360) 786-7608
Mark.Mullet@leg.wa.gov

Senator Annette Cleveland
Democrat
(360) 786-7696
Annette.Cleveland@leg.wa.gov

Senator Patty Kuderer
Democrat
(360) 786-7694
Patty.Kuderer@leg.wa.gov

Senator Lisa Wellman
Democrat
(360) 786-7641
Lisa.Wellman@leg.wa.gov

Senator Guy Palumbo
Democrat
(360) 786-7600
Guy.Palumbo@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
Rebecca.Saldana@leg.wa.gov

Senator Manka Dhingra
Democrat
(360) 786-7672
Manka.Dhingra@leg.wa.gov

Senator Keith Wagoner
Republican
(360) 786-7676
Keith.Wagoner@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov

Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov

Senator Jesse Salomon
Democrat
(360) 786-7662
SALOMON_JE@leg.wa.gov

Senator Claire Wilson
Democrat
(360) 786-7658
WILSON_CL@leg.wa.gov

Senator Emily Randall
Democrat
(360) 786-7650
RANDALL_EM@leg.wa.gov

Senator Liz Lovelett
Democrat
(360) 786-7678
Liz.Lovelett@leg.wa.gov

The following legislators voted nay:

Senator Mike Padden
Republican
(360) 786-7606
Mike.Padden@leg.wa.gov

Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov

Senator Mark Schoesler
Republican
(360) 786-7620
Mark.Schoesler@leg.wa.gov

Senator Hans Zeiger
Republican
(360) 786-7648
Hans.Zeiger@leg.wa.gov

Senator Barbara Bailey
Republican
(360) 786-7618
Barbara.Bailey@leg.wa.gov

Senator Kevin Van De Wege
Democrat
(360) 786-7646
Kevin.VanDeWege@leg.wa.gov

Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov

Senator Ann Rivers
Republican
(360) 786-7634
Ann.Rivers@leg.wa.gov

Senator Steve O'Ban
Republican
(360) 786-7654
Steve.OBan@leg.wa.gov

Senator John Braun
Republican
(360) 786-7638
John.Braun@leg.wa.gov

Senator Sharon Brown
Republican
(360) 786-7614
Sharon.Brown@leg.wa.gov

Senator Lynda Wilson
Republican
(360) 786-7632
Lynda.Wilson@leg.wa.gov

The following legislators were excused:

Senator Doug Ericksen
Republican
(360) 786-7682
Doug.Ericksen@leg.wa.gov

Senator Reuven Carlyle
Democrat
(360) 786-7670
Reuven.Carlyle@leg.wa.gov

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

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