This bill amends RCW 82.08.020 to change Washington’s sales tax structure. It establishes a 6.5% tax on the selling price of retail sales of tangible personal property, certain digital goods and services (if included under RCW 82.04.050), extended warranties to consumers, and other sales included in RCW 82.04.050. It also imposes an additional 5.9% tax on the selling price of each retail car rental (regardless of vehicle registration), and it retains an existing additional 0.3% tax on retail sales of motor vehicles (other than retail car rentals) effective July 1, 2003. The bill clarifies that sales taxes apply to sales of motor vehicles purchased solely for use in retail car rentals, dedicates revenue from the 5.9% retail car rental tax and the 0.3% motor vehicle tax to the multimodal transportation account (RCW 47.66.070), and directs that 0.16% of taxes collected under the main subsection be deposited in the performance audits of government account (RCW 43.09.475) to fund comprehensive performance audits under RCW 43.09.470 (effective December 8, 2005). It confirms that the taxes apply to successive retail sales of the same property and that the rates apply to taxes under chapter 82.12 RCW as provided in RCW 82.12.020. This is a statutory amendment creating and specifying tax rates, revenue allocations, and applicability rules (a tax law change and procedural revenue dedication). The text references definitions and other provisions in RCW 82.04.050 and RCW 46.04.320 and invokes preemption of conflicting state regulations (WAC 458-20-180(11)), but the extracted facts do not include the definitions of “retail sale,” “motor vehicle” as used here, “retail car rental,” or “selling price,” so those specific terms and any differing prior statutory language are not shown in the provided material.

If enacted, businesses that rent cars and anyone who buys vehicles specifically to rent them will face new or clarified taxes that will raise their costs: retail car rentals will carry an extra 5.9% tax on the selling price and purchases of vehicles bought solely to be used as rental cars will be treated as taxable retail sales rather than exempt resale purchases. Other motor vehicle purchases (not rentals) remain subject to a continuing 0.3% vehicle tax, and a portion (0.16%) of the general sales taxes collected will be redirected to pay for comprehensive performance audits. The new and retained taxes will increase revenue earmarked for the state multimodal transportation account and for government performance audits, and renters will likely see some or all of the rental-tax cost passed through in higher rental rates. Key specifics that affect how big these practical impacts are remain unclear from the text provided: the law refers to but does not define terms such as “retail car rental,” “selling price,” and the referenced definitions of “retail sale” and “motor vehicle,” so it’s uncertain exactly which transactions and charges are covered and how exemptions apply.