Gandy v. State

Ott, J.

(dissenting) — The legislature, by Laws of 1959, Ex. Ses., chapter 5, § 1, p. 1664, amended Laws of 1955, chapter 389, § 5, p. 1645, as amended by Laws of 1959, Ex. Ses., chapter 3, §1, p. 1644 (RCW 82.04.040), to include another taxable event, that is, the leasing of tangible personal property. In White v. State, 49 Wn. (2d) 716, 725, 306 P. (2d) 230 (1957), we held that the event upon which the tax is imposed is “the transaction.” The transaction occurs when there is a change of ownership of the property, or when the right to possession transfers from one party to another. Olympic Motors v. McCroskey, 15 Wn. (2d) 665, 132 P. (2d) 355, 150 A. L. R. 1306 (1942). Laws of 1959, Ex. Ses., chapter 5, § 1, supra (RCW 82.04.040), added to the previous list of taxable events that of leasing personal *700property. It did not add the payment of rentals as a taxable event.

I agree with the majority that Laws of 1959, Ex.’ Ses., chapter 3, § 8, p. 1650 (RCW 82.08.090), authorizes the state tax commission to collect taxes on the events described in RCW 82.04.040, measured by the rentals received.: I do not agree with the majority’s conclusion that the payment of rentals is a taxable event. Had such been the legislative intent, this event would have been described in Laws of 1959, Ex. Ses., chapter 5, § 1, supra (RCW 82.04.040) * where the taxable events are described.

In the instant case, the event, that is, the transfer of possession of motor vehicles under the lease, occurred prior to the effective date of the amendment. Subsequent to this transfer, no event transpired upon which a sales or use tax might be imposed. The result of the majority’s conclusion is not to impose a double tax, but to impose a tax under circumstances not authorized by the legislature.

I would reverse the judgment of the trial court.

Hill and Foster, JJ., concur with Ott, J.

May 18,1961. Petition for rehearing denied.