Notice of Introduction for Engrossed Substitute Senate Bill 6354 - 10 Year Analysis Complete - System Update

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ESSB 6354, titled AN ACT Relating to advancing transportation electrification by expanding access to electric vehicles already being sold in Washington and increasing associated funding, has been introduced in 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		Motor Vehicle Dealer Original	Motor Vehicle Dealer Renewal	Total
2026		$0	$0	$0
2027		$2,000	$0	$2,000
2028		$0	$700	$700
2029		$0	$700	$700
2030		$0	$700	$700
2031		$0	$700	$700
2032		$0	$700	$700
2033		$0	$700	$700
2034		$0	$700	$700
2035		$0	$700	$700
Total:		$2,000	$5,600	$7,600

Department of Licensing:

This bill provides authorization for certain electric vehicle manufacturers to own and operate a motor vehicle dealership in Washington. They must fulfill Section 2 requirements.

Current motor vehicle dealer license fees are $975 for and original and $325 for annual renewals deposited in the Motor Vehicle Fund 108. DOL assumes at least two dealerships that would begin paying motor vehicle dealership fees if this bill were to be enacted. 

Section 6 provides $10,000 penalty per retail sale or lease for violation. The revenue impact of which is unknown. Typically, revenue from penalties are not forecasted. 

Section 7 increases allowable documentary fee per vehicle up to $225 from effective date to Dec 31, 2036 and up to $200 beginning January 1, 2037. Section 7 also mandates that until Dec 31, 2036, the dealer must transfer the first $25 of any documentary service fee collected to DOL with 25% deposited to Electric Vehicle Account (20J) and 75% deposited in the Multimodal Transportation Account (218).

DOL does not have data on the number of transactions in which vehicle dealers charge documentary service fees. For this analysis, DOL assumes that such fees may be charged in approximately 60 to 80 percent of dealer’s sales and lease transactions. The table below shows a low and high estimate with FY2027 reflecting a 50% ramp up due to remittance occurring during license renewal and FY2037 reflecting 50% due to mandate ending Dec 31, 2036.

This bill's revenue impact to DOL is partially indeterminate with a low and high estimate.

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

Department of Licensing

This engrossed bill is proposed by the Senate.

The substitute bill was proposed by:

Senate Committee on Transportation
(360) 786-7300



The original bill sponsors and contact information are:

Senator Marko Liias, Prime Sponsor
Democrat
(360) 786-7640
marko.liias@leg.wa.gov

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




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

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