Notice of Public Hearing of Substitute Senate Bill 5137

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SSB 5137, titled AN ACT Relating to modifying the aircraft excise tax, has been scheduled for a public hearing by the House Committee on Transportation.

Date and Time: 03/25/2019 3:30PM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm B, Olympia, WA

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 substitute bill was proposed by:

Senate Committee on Transportation
(360) 786-7300



The original bill sponsors and contact information are:

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

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


House Committee on Transportation members and contact information:

Representative Andrew Barkis
Republican
(360) 786-7824
Andrew.Barkis@leg.wa.gov

Representative Matt Boehnke
Republican
(360) 786-7986
BOEHNKE_MA@leg.wa.gov

Representative Kelly Chambers
Republican
(360) 786-7948
CHAMBERS_KE@leg.wa.gov

Representative Mike Chapman
Democrat
(360) 786-7916
Mike.Chapman@leg.wa.gov

Representative Tom Dent
Republican
(360) 786-7932
Tom.Dent@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7992
Beth.Doglio@leg.wa.gov

Representative Jeremie Dufault
Republican
(360) 786-7874
DUFAULT_JE@leg.wa.gov

Representative Debra Entenman
Democrat
(360) 786-7918
ENTENMAN_DE@leg.wa.gov

Representative Carolyn Eslick
Republican
(360) 786-7816
ESLICK_CA@leg.wa.gov

Representative Jake Fey
Democrat
(360) 786-7974
Jake.Fey@leg.wa.gov

Representative Keith Goehner
Republican
(360) 786-7954
GOEHNER_KE@leg.wa.gov

Representative Mia Gregerson
Democrat
(360) 786-7868
Mia.Gregerson@leg.wa.gov

Representative Morgan Irwin
Republican
(360) 786-7866
Morgan.Irwin@leg.wa.gov

Representative Shelley Kloba
Democrat
(360) 786-7900
Shelley.Kloba@leg.wa.gov

Representative John Lovick
Democrat
(360) 786-7804
John.Lovick@leg.wa.gov

Representative Bob McCaslin
Republican
(360) 786-7820
Bob.McCaslin@leg.wa.gov

Representative Jared Mead
Democrat
(360) 786-7892
MEAD_JA@leg.wa.gov

Representative Jeff Morris
Democrat
(360) 786-7970
Jeff.Morris@leg.wa.gov

Representative Ed Orcutt
Republican
(360) 786-7990
Ed.Orcutt@leg.wa.gov

Representative Lillian Ortiz-Self
Democrat
(360) 786-7972
Lillian.Ortiz-Self@leg.wa.gov

Representative Dave Paul
Democrat
(360) 786-7914
PAUL_DA@leg.wa.gov

Representative Mike Pellicciotti
Democrat
(360) 786-7898
Mike.Pellicciotti@leg.wa.gov

Representative Bill Ramos
Democrat
(360) 786-7852
RAMOS_BI@leg.wa.gov

Representative Marcus Riccelli
Democrat
(360) 786-7888
Marcus.Riccelli@leg.wa.gov

Representative Matt Shea
Republican
(360) 786-7984
Matt.Shea@leg.wa.gov

Representative Sharon Shewmake
Democrat
(360) 786-7854
SHEWMAKE_SH@leg.wa.gov

Representative Vandana Slatter
Democrat
(360) 786-7936
Vandana.Slatter@leg.wa.gov

Representative Gael Tarleton
Democrat
(360) 786-7860
Gael.Tarleton@leg.wa.gov

Representative Javier Valdez
Democrat
(360) 786-7818
Javier.Valdez@leg.wa.gov

Representative Luanne Van Werven
Republican
(360) 786-7980
Luanne.VanWerven@leg.wa.gov

Representative Jim Walsh
Republican
(360) 786-7806
Jim.Walsh@leg.wa.gov

Representative Sharon Wylie
Democrat
(360) 786-7924
Sharon.Wylie@leg.wa.gov

Representative Jesse Young
Republican
(360) 786-7964
Jesse.Young@leg.wa.gov



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

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