Washington State Considers “Doc Fee” Bills
A bill that would allow vehicle dealers to triple documentation fees would also strengthen disclosure rules related to those fees.
OLYMPIA, Wash. — A bill that would allow vehicle dealers to triple documentation fees would also strengthen disclosure rules related to those fees.
The bill, which is being pushed by the Washington dealers association, would allow dealers to increase the fee to process deal-related paperwork from $50 to $150, according to The Seattle Times. However, it would also require that dealers, including powersports retailers, to inform customers that all fees are negotiable.
“Our association is
not making a big move against this particular bill – as virtually everything on
a sale is already negotiable. This bill, however, does add new disclosure
requirements. This is something dealers really need to be aware
of,” said Jim Boltz, president of the Washington State Motorsports Dealers Association.
Under Senate Bill 5816, Washington vehicle buyers must also be informed of the fee, and told that the cost is negotiable and not a required charge by the state. Details of the fee must also be printed on the purchasing paperwork in an easy-to-read font.
State law currently allows dealerships to charge customers $50 or less to cover processing of the licensing and the vehicle excise tax, as well as other administrative costs.
Sen. Tracey Eide (D-Wash.) sponsored the Senate measure as a way to give Washington motor vehicle dealers a fair shot when competing with dealerships in Oregon and Idaho, which have lower business taxes.
A Senate committee passed a version of the "documentary service fee" increase last week. The House is considering a similar measure.
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