On September 14, 1996, approximately 1500 Pacific daylight time, a Bellanca 7ECA, N8809, and a Piper J3C-65, N88334, collided on a taxiway at Arlington Municipal Airport, Arlington, Washington (an uncontrolled airport.) The four aircraft occupants (the commercial pilot-in-command/flight instructor and a private pilot, who were in the Bellanca; and an airline transport pilot/owner and one passenger in the Piper) were not injured. However, the pilot-in-command of the Bellanca reported that both aircraft were substantially damaged in the collision. Both aircraft were operating under 14 CFR 91 and visual meteorological conditions prevailed at the time of the accident. The pilots of both aircraft reported that at the time of the accident, the Bellanca was taxiing in from landing and the Piper was taxiing for takeoff. The pilot-in-command of the Bellanca, who was sitting in the rear seat of the aircraft, stated that his airplane was taxiing southbound on a north-south parallel taxiway east of runway 16/34 and that the Piper was taxiing northbound on the same taxiway. He stated that he maneuvered to the extreme right of the taxiway but that the Piper continued ahead and the two aircraft collided, left wing to left wing, in spite of the Bellanca pilots' attempt to ensure clearance by moving to the side of the taxiway. The pilot-in-command of the Bellanca also said that he did not see the Piper as the aircraft neared, and assumed that his aircraft was "...well clear." The Piper pilot reported that the Bellanca landed to the south and turned left off the runway at the first turn-off (approximately 1,500 feet from the approach end of the runway), then turned right (southbound) onto the parallel taxiway. He stated that he did not see the Bellanca until the two aircraft collided, and that his aircraft ran into the Bellanca as a result. The Piper pilot stated that he was in the back seat of the Piper and that his front-seat passenger was a 10-year-old boy. Both aircraft involved had tailwheel landing gear.