SENATE BILL REPORT

SB 5384

BYSenators Patterson, Craswell, Bender, McMullen and von Reichbauer

Exempting state ferry fuel from sales and use tax.

Senate Committee on Transportation

Senate Hearing Date(s):February 8, 1989

Majority Report:  Do pass.

      Signed by Senators Patterson, Chairman; von Reichbauer, Vice Chairman; Barr, Bender, Conner, DeJarnatt, Hansen, McMullen, Madsen, Murray, Sellar, Thorsness.

Senate Staff:Gene Schlatter (786-7316)

                  February 9, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1989; March 6, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bluechel, Cantu, Hayner, Johnson, Lee, Matson, Newhouse, Smith, Williams.

Senate Staff:Terry Wilson (786-7715)

                  March 15, 1989

AS PASSED SENATE, MARCH 14, 1989

BACKGROUND:

Fuel used for nonhighway purposes is not subject to the 18 cents per gallon gas tax, but is subject to sales and use tax unless specifically exempted.  Public transportation systems are exempt from both fuel taxes and sales and use taxes.  The Washington State ferry system is exempt from the fuel tax, but is subject to the sales and use tax.

SUMMARY:

Fuel purchased for marine use by the state ferry system is exempt from the sales and use tax.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: TRANSPORTATION:  Harold Parker, Marine Division, Washington State Department of Transportation; Ben Dysart, Washington State Ferry Riders Coalition

Senate Committee - Testified: WAYS & MEANS:  Terry McCarthy, Department of Transportation