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 the sale of automobile towing and storage services, which are subject to different tax regulations. Specifically, it introduces new sections to chapters 82.04 and 82.08 RCW, stating that registered tow truck operators must collect applicable taxes when selling abandoned vehicles at public auctions or to licensed vehicle wreckers, hulk haulers, or scrap processors. Additionally, it allows operators to deduct surplus proceeds that must be transmitted to the Department of Licensing from taxable amounts.

The bill also 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