Notice of Introduction for House Bill 1572 - Update: 10 Year Analysis Complete

Office of Financial Management

Having trouble viewing this email? View it as a Web page.

Bookmark and Share

You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.

Please note: This email message was sent from a notification-only address. Please do not reply to this message.

HB 1572, titled AN ACT Relating to modifying the sales and use tax treatment of motor vehicles purchased by rental car companies, has been introduced in the House of Representatives. 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

   Business & Occupation Tax

   Retail Sales Tax

Total

 

2022

$ -140,000

$ 72,410,000

$ 72,270,000

2023

-250,000

125,390,000

$ 125,140,000

2024

-250,000

128,600,000

$ 128,350,000

2025

-260,000

131,800,000

$ 131,540,000

2026

-260,000

135,110,000

$ 134,850,000

2027

-270,000

138,510,000

$ 138,240,000

2028

-280,000

142,220,000

$ 141,940,000

2029

-290,000

145,920,000

$ 145,630,000

2030

-290,000

149,730,000

$ 149,440,000

2031

-300,000

153,630,000

$ 153,330,000

 

Total:

$ -2,590,000

$ 1,323,320,000

$ 1,320,730,000





Department of Licensing:

This bill will have a positive but indeterminate cash receipts impact. The bill creates tax preferences for the rental car companies by eliminating the sales and use tax for electric, hydrogen and hybrid vehicles. Car rental companies may increase the number of vehicles subject to the preference in their rental car fleets. In those cases, the collection of DOL fees associated with the electric, hydrogen and hybrid vehicles ($150 and $75 fees) would increase. Currently there are no available projections to determine the potential magnitude of the increase.

 



Ten-year projection prepared in consultation with the following agencies:

Department of Revenue
Department of Licensing


Bill sponsors and contact information:

Representative Joe Fitzgibbon, Prime Sponsor
Democrat
(564) 888-2362
joe.fitzgibbon@leg.wa.gov

Representative Davina Duerr
Democrat
(425) 318-1303
DUERR_DA@leg.wa.gov




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

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