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 not subject to tax as automobile towing and storage services but rather as the sale of tangible personal property. Additionally, it allows registered tow truck operators to deduct any surplus proceeds that must be transmitted to the Department of Licensing from the taxable amounts. The bill also establishes that taxes must be collected on retail sales of abandoned vehicles at public auctions or to licensed vehicle wreckers, hulk haulers, or scrap processors, unless specifically exempted.

Furthermore, the bill repeals certain sections from previous legislation that may conflict with the new provisions and specifies that the tax characterization for wholesale purchases of abandoned vehicles by licensed 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