This bill amends RCW 82.04.040 and adds new sections to chapters 82.04 and 82.08 RCW to change how sales of abandoned vehicles are treated for state tax purposes. It directs that gross proceeds from sales of abandoned vehicles by a registered tow truck operator are taxed under chapter 82.04 as sales of tangible personal property rather than as towing and storage services, and it allows tow operators to deduct surplus proceeds they are required by law to transmit to the Department of Licensing under RCW 46.55.130 and 46.55.200 from amounts taxable under the new provision. The bill also creates a procedural tax collection duty: registered tow truck operators (and agents selling abandoned vehicles at public auction on their behalf) must collect retail sales tax under RCW 82.08.020 when making retail sales of abandoned vehicles at public auction or selling to licensed vehicle wreckers, hulk haulers, or scrap processors, unless a specific tax exemption applies. For purposes of the new law, “abandoned vehicle” and “registered tow truck operator” are defined by reference to RCW 46.55.010. The act includes a legislative finding that licensed wreckers, scrap processors, and hulk haulers generally make wholesale purchases and states that the act is not intended to change that tax characterization. It also specifies that RCW 82.32.805 and 82.32.808 do not apply, repeals certain uncodified sections (2023 c 416 ss. 5 and 6; 2019 c 357 ss. 1 and 3), and takes effect January 1, 2026. Important context is not included in the provided text: the bill references definitions and procedures in RCW 46.55.010, RCW 46.55.130, and RCW 46.55.200 but those texts are not provided here, and detailed tax rates, exemptions, and collection mechanics under RCW 82.08.020 and related tax chapters are not shown.

If enacted, starting January 1, 2026 registered tow truck operators who sell abandoned vehicles will have to collect and remit retail sales tax on those sales when they auction them or sell them to licensed wreckers, hulk haulers, or scrap processors, and agents running auctions for tow operators will have the same collection duty. Tow operators can reduce the taxable amount by subtracting any surplus proceeds they are already required to send to the Department of Licensing, so the immediate practical change is a new routine obligation to collect, document, and remit sales tax on abandoned-vehicle sales. The people most affected are registered tow truck operators and their auction agents (who will face new compliance, recordkeeping, and potential liability for uncollected tax), and buyers like licensed vehicle wreckers and scrap processors (who may need to provide proof of any exemption or adjust costs accordingly); the Department of Licensing continues to receive surplus proceeds under existing law. Important implementation details—exact definitions, how to calculate the tax base, available exemptions, and the content or effect of the repealed uncodified sections—rely on other cited statutes not included here, so some practical questions about when a sale is taxable or treated as a wholesale purchase remain uncertain.