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                 SECOND ENGROSSED HOUSE BILL 1016

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State of Washington      54th Legislature     1995 Regular Session

 

By Representatives K. Schmidt and Kremen

 

Prefiled 12/30/94.  Read first time 01/09/95.  Referred to Committee on Transportation.

 

Exempting state and county ferry fuel sales and use tax.


    AN ACT Relating to state and county ferries; amending RCW 82.38.030, 82.36.410, and 47.56.725; creating a new section; and making an appropriation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    NEW SECTION.  Sec. 1.  The legislature finds and declares that permanently locating the USS Missouri in the city of Bremerton will be of significant economic, historical, and educational benefit to the state of Washington.  The Washington state ferries will play a significant role in providing access to the USS Missouri for visitors coming from the east side of Puget Sound.  The increase in ridership associated with the attraction will require an investment in new pedestrian facilities that connect the attraction to the Bremerton ferry terminal.  In addition, the placement of the USS Missouri requires complex anchorage and dolphins to protect ferry system navigation lanes.  This act supports, in part, the required infrastructure investments and provides financial resources for the Washington state ferries to accomplish the objectives.

 

    Sec. 2.  RCW 82.38.030 and 1989 c 193 s 3 are each amended to read as follows:

    (1) There is hereby levied and imposed upon special fuel users a tax at the rate computed in the manner provided in RCW 82.36.025 per gallon or each one hundred cubic feet of compressed natural gas measured at standard pressure and temperature on the use of special fuel in any motor vehicle, or a ferry owned or operated by the state of Washington or one of its political subdivisions, operated upon the highways or waterways of this state during the fiscal year for which such rate is applicable.

    (2) The tax shall be collected by the special fuel dealer and shall be paid over to the department as hereinafter provided:  (a) With respect to all special fuel delivered by a special fuel dealer into supply tanks of motor vehicles or into storage facilities used for the fueling of motor vehicles at unbonded service stations in this state; or (b) in all other transactions where the purchaser is not the holder of a valid special fuel license issued pursuant to this chapter allowing the purchase of untaxed special fuel, except sales of special fuel for export.  To claim an exemption on account of sales by a licensed special fuel dealer for export, the purchaser shall obtain from the selling special fuel dealer, and such selling special fuel dealer must furnish the purchaser, an invoice giving such details of the sale for export as the director may require, copies of which shall be furnished the department and the entity of the state or foreign jurisdiction of destination which is charged by the laws of that state or foreign jurisdiction with the control or monitoring or both, of the sales or movement of special fuel in that state or foreign jurisdiction.

    (3) The tax shall be paid over to the department by the special fuel user as hereinafter provided with respect to the taxable use of special fuel upon which the tax has not previously been imposed.

    It is expressly provided that delivery of special fuel may be made without collecting the tax otherwise imposed, when such deliveries are made by a bonded special fuel dealer to special fuel users who are authorized by the department as hereinafter provided, to purchase fuel without payment of tax to the bonded special fuel dealer.

 

    Sec. 3.  RCW 82.36.410 and 1973 c 95 s 5 are each amended to read as follows:

    All moneys collected by the director shall be transmitted forthwith to the state treasurer, together with a statement showing whence the moneys were derived, and shall be by him credited to the motor vehicle fund.  All revenues from fuel purchased for marine use by the state ferry system shall be credited to the Puget Sound ferry operations account created under RCW 47.60.530.  All revenues from fuel purchased for marine use by Pierce, Skagit, and Whatcom counties for county ferry operations shall be credited to the motor vehicle fund and distributed under RCW 46.68.100(3) and allocated according to RCW 47.56.725.  All revenues from fuel purchased by Wahkiakum county for county ferry operations shall be directly reimbursed by the state treasurer to the Wahkiakum county treasurer.

 

    Sec. 4.  RCW 47.56.725 and 1991 c 310 s 1 are each amended to read as follows:

    (1) The department is hereby authorized to enter into a continuing agreement with Pierce, Skagit, and Whatcom counties pursuant to which the department shall, from time to time, direct the distribution to each of the counties the amounts authorized in subsection (2) of this section in accordance with RCW 46.68.100.

    (2) The department is authorized to include in each agreement a provision for the distribution of funds to each county to reimburse the county for fifty percent of the deficit incurred during each previous fiscal year in the operation and maintenance of the ferry system owned and operated by the county.  The total amount to be reimbursed to Pierce, Skagit, and Whatcom counties collectively shall not exceed one million dollars in any biennium.  Refunds of motor vehicle fuel taxes for county ferry operations shall not be considered in the amount to be reimbursed.  Each county agreement shall contain a requirement that the county shall maintain tolls on its ferries at least equal to tolls in place on January 1, 1990.

    (3) The annual fiscal year operating and maintenance deficit, if any, shall be determined by Pierce, Skagit, and Whatcom counties subject to review and approval of the department.  The annual fiscal year operating and maintenance deficit is defined as the total of operations and maintenance expenditures less the sum of ferry toll revenues and that portion of fuel tax revenue distributions which are attributable to the county ferry as determined by the department.  Distribution of the amounts authorized by subsection (2) of this section by the state treasurer shall be directed by the department upon the receipt of properly executed vouchers from each county.

    (4) The county road administration board may evaluate requests by Pierce, Skagit, Wahkiakum, and Whatcom counties for county ferry capital improvement funds.  The board shall evaluate the requests and, if approved by a majority of the board, submit the requests to the legislature for funding out of the amounts available under RCW 46.68.100(3).  Any county making a request under this subsection shall first seek funding through the public works trust fund, or any other available revenue source, where appropriate.

 

    NEW SECTION.  Sec. 5.  The sum of three million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1997, from the Puget Sound ferry operations account to the Washington state ferries of the department of transportation for the purpose of reimbursing Kitsap county and the Port of Bremerton for construction of facilities supporting the placement of and access to the national tourist attraction USS Missouri.

 


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