Governing for Results 13 - Washington State Digital Archives

Department of Licensing;
Department of Revenue
Automated Valuation System
When citizens and businesses purchase vehicles and vessels from dealers, the
dealers collect sales tax on the value of the purchase. If citizens make these
purchases and sales tax was not collected, use tax is collected when the
vehicle/vessel is titled. Because of the varying valuation systems, sometimes
agents and subagents incorrectly or inconsistently applied the use tax laws
resulting in varying values. Department of Revenue, Department of Licensing,
Washington State Auditors Association, and the Washington Association of
Vehicle Subagents partnered to develop the new Automated Valuation System.
The system verifies the taxable value of most transactions at Department of
Revenue offices, Department of Licensing offices, county auditor and subagent
locations.
Results
★ More accurate use tax values resulted in an additional $6,115,343 for August,
September and October 2000 compared with the same three months in 1999.
Projected additional revenue is $24 million annually.
★ Uniform application of use tax laws and procedures prevents 'shopping' for
the best tax rate and provides consistency between Departments of Licensing
and Revenue field offices.
★ Saves Subagents, Agents, and Department of Licensing the time spent
phoning Department of Revenue to verify valuations.
★ Generates reports that each office may utilize to identify trends and training
issues.
★ Phase 2 of the project, to be implemented in late Spring 2001, will include
motor homes, travel trailers, campers and vessels.
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