This bill amends existing laws regarding the sale of abandoned vehicles by registered tow truck operators in Washington State. It clarifies that the gross proceeds from these sales are to be treated as the sale of tangible personal property rather than as automobile towing and storage services, thus subjecting them to different tax regulations. Specifically, it introduces new sections to chapters 82.04 and 82.08 RCW, which outline the tax obligations for registered tow truck operators when selling abandoned vehicles at public auctions or to licensed vehicle wreckers, hulk haulers, or scrap processors. The bill also allows registered tow truck operators to deduct surplus proceeds that must be transmitted to the Department of Licensing from their taxable amounts.

Additionally, the bill repeals certain previous provisions that may conflict with the new regulations and specifies that the tax characterization for wholesale purchases of abandoned vehicles by auto wreckers, scrap processors, and hulk haulers remains unchanged. The act is set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 82.04.040