HOUSE BILL REPORT

SB 6816

BYSenators Anderson, Bailey and Barr

Exempting milk pumping from the special fuel tax.

House Committe on Transportation

Majority Report:  Do pass.  (26)

      Signed by Representatives R. Fisher, Chair; Baugher, Vice Chair, Eastern Washington; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Basich, Bennett, Betrozoff, Cantwell, Cooper, Day, G. Fisher, Forner, Gallagher, Hankins, Heavey, Jones, Kremen, Nelson, Prentice, Prince, Smith, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

Minority Report:  Do not pass.  (1)

      Signed by Representative R. Meyers, Vice Chair, Western Washington.

House Staff:Roger Horn (786-7839)

AS PASSED HOUSE MARCH 1, 1990

BACKGROUND:

Some milk transport companies use trucks equipped with power take-off units to pick up milk from dairy farms.  These power take-off units are powered by fuel from the truck's fuel tank.

Fuel used for a non-highway purpose is exempt from the special fuel tax.  However, the Department of Revenue has not allowed milk transport companies to take an exemption on fuel used for this purpose because these trucks are not equipped with an accurate measuring device.  Trucks using power take-off units to deliver propane, fuel oil, or heating oil are allowed to use a formula to determine the amount of fuel they can claim as exempt.

SUMMARY:

For purposes of claiming a special fuel tax exemption, fuel used by power take-off units to pump milk into delivery trucks at dairy farms or dairy farm storage tanks may be measured at three-quarters of a gallon per thousand gallons picked up.  This is the same formula used for power take-off units pumping propane, fuel oil, and heating oil.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Ruth Thom, Lynden Transport, Incorporated.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Fuel used by power take-off units (PTO's) to pump milk qualifies for the special fuel tax exemption.  Milk transport companies using PTO's should not be penalized because PTO's do not come equipped with accurate measuring devices.  The formula to determine fuel used by PTO's is already allowed for fuel transport companies who use PTO's to pump their products.

House Committee - Testimony Against:      None.