HB 1011-S.E - DIGEST

(DIGEST AS PASSED LEGISLATURE)

     Exempts the fuel that is purchased for marine use by the state ferry system or by a county ferry system authorized under RCW 36.54.010.

     Provides that the act shall be null and void if appropriations are not approved.

VETO MESSAGE ON HB 1011-S

                   May 9, 1997

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval, Engrossed Substitute House Bill No. 1011 entitled:

"AN ACT Relating to state and county ferries;"

     Under current law, entities that are exempt from the fuel tax pay sales and use tax on their fuel.  Entities that are exempt from sales and use tax pay the fuel tax. 

     Engrossed Substitute House Bill No. 1011 would exempt state and county ferries from sales and use tax on fuel they purchase.  However, ferries are already exempt from paying the fuel tax on their fuel. 

     It would be poor precedent to begin allowing some entities to be exempt from both taxes. 

     For this reason, I have vetoed Engrossed Substitute House Bill No. 1011 in its entirety.

                   Respectfully submitted,

                   Gary Locke

                   Governor