Notice of Introduction for House Bill 1572 - Update: 10 Year Analysis Complete
Office of the Governor / Office of Financial Management sent this bulletin at 05/10/2021 09:23 AM PDT
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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 |
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