[atlas:bill]

AN ACT Relating to transportation financing; amending RCW 46.16.0621, 46.16.070, 46.68.035, 46.16.071, 82.08.020, 82.12.020, 82.12.045, 82.38.030, 82.38.035, 82.38.045, 82.38.047, and 82.38.075; reenacting and amending RCW 46.68.090 and 82.36.025; adding a new section to chapter 46.04 RCW; and providing an effective date.

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

Sec. 1. RCW 46.16.0621 and 2000 1st sp.s. c 1 s 1 are each amended to read as follows:

(1) License tab fees shall be thirty dollars per year for motor vehicles, regardless of year, value, make, or model, beginning January 1, 2000.

(2) For the purposes of this section, "license tab fees" are defined as the general fees paid annually for licensing motor vehicles, including cars, sport utility vehicles, and motorcycles((~~, and motor homes~~)).

NEW SECTION. Sec. 2. A new section is added to chapter 46.04 RCW to read as follows:

"Gross weight portion of the current combined licensing fees" means the amounts listed in RCW 46.16.070, Schedule A, less twenty‑five dollars and seventy‑five cents, and the amounts listed in Schedule B, less twenty‑five dollars and seventy‑five cents and less an additional ninety dollars if the requested gross weight is over forty thousand pounds.

Sec. 3. RCW 46.16.070 and 1994 c 262 s 8 are each amended to read as follows:

(1) In lieu of all other vehicle licensing fees, unless specifically exempt, and in addition to ((~~the excise tax prescribed in chapter 82.44 RCW and~~)) the mileage fees prescribed for buses and stages in RCW 46.16.125, there shall be paid and collected annually for each truck, motor truck, truck tractor, road tractor, tractor, bus, auto stage, motor home, or for hire vehicle with seating capacity of more than six, based upon the declared combined gross weight or declared gross weight ((~~thereof pursuant to the provisions of~~)) under chapter 46.44 RCW, the following licensing fees by such gross weight:

DECLARED GROSS WEIGHT SCHEDULE A SCHEDULE B

4,000 lbs. $ 37.00 $ 37.00

6,000 lbs. $ 44.00 $ 44.00

8,000 lbs. $ 55.00 $ 55.00

10,000 lbs. $ 62.00 $ 62.00

12,000 lbs. $ 72.00 $ 72.00

14,000 lbs. $ 82.00 $ 82.00

16,000 lbs. $ 92.00 $ 92.00

18,000 lbs. $ 137.00 $ 137.00

20,000 lbs. $ 152.00 $ 152.00

22,000 lbs. $ 164.00 $ 164.00

24,000 lbs. $ 177.00 $ 177.00

26,000 lbs. $ 187.00 $ 187.00

28,000 lbs. $ 220.00 $ 220.00

30,000 lbs. $ 253.00 $ 253.00

32,000 lbs. $ 304.00 $ 304.00

34,000 lbs. $ 323.00 $ 323.00

36,000 lbs. $ 350.00 $ 350.00

38,000 lbs. $ 384.00 $ 384.00

40,000 lbs. $ 439.00 $ 439.00

42,000 lbs. $ 456.00 $ 546.00

44,000 lbs. $ 466.00 $ 556.00

46,000 lbs. $ 501.00 $ 591.00

48,000 lbs. $ 522.00 $ 612.00

50,000 lbs. $ 566.00 $ 656.00

52,000 lbs. $ 595.00 $ 685.00

54,000 lbs. $ 642.00 $ 732.00

56,000 lbs. $ 677.00 $ 767.00

58,000 lbs. $ 704.00 $ 794.00

60,000 lbs. $ 750.00 $ 840.00

62,000 lbs. $ 804.00 $ 894.00

64,000 lbs. $ 822.00 $ 912.00

66,000 lbs. $ 915.00 $ 1,005.00

68,000 lbs. $ 954.00 $ 1,044.00

70,000 lbs. $ 1,027.00 $ 1,117.00

72,000 lbs. $ 1,098.00 $ 1,188.00

74,000 lbs. $ 1,193.00 $ 1,283.00

76,000 lbs. $ 1,289.00 $ 1,379.00

78,000 lbs. $ 1,407.00 $ 1,497.00

80,000 lbs. $ 1,518.00 $ 1,608.00

82,000 lbs. $ 1,623.00 $ 1,713.00

84,000 lbs. $ 1,728.00 $ 1,818.00

86,000 lbs. $ 1,833.00 $ 1,923.00

88,000 lbs. $ 1,938.00 $ 2,028.00

90,000 lbs. $ 2,043.00 $ 2,133.00

92,000 lbs. $ 2,148.00 $ 2,238.00

94,000 lbs. $ 2,253.00 $ 2,343.00

96,000 lbs. $ 2,358.00 $ 2,448.00

98,000 lbs. $ 2,463.00 $ 2,553.00

100,000 lbs. $ 2,568.00 $ 2,658.00

102,000 lbs. $ 2,673.00 $ 2,763.00

104,000 lbs. $ 2,778.00 $ 2,868.00

105,500 lbs. $ 2,883.00 $ 2,973.00

Schedule A applies to vehicles either used exclusively for hauling logs or that do not tow trailers. Schedule B applies to vehicles that tow trailers and are not covered under Schedule A.

(2) Every truck, motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle or unless the vehicle is used only for the purpose of transporting any well drilling machine, air compressor, rock crusher, conveyor, hoist, donkey engine, cook house, tool house, bunk house, or similar machine or structure attached to or made a part of such vehicle.

(3) Beginning with all motor vehicle registrations that are due or become due on July 1, 2002, and thereafter, there will be paid and collected annually a twenty-percent surcharge on the gross weight portion of the current combined licensing fees.

(4) The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:

(a) The new license fee will be one-twelfth of the fee listed above for the new gross weight, multiplied by the number of months remaining in the period for which licensing fees have been paid, including the month in which the new gross weight is effective.

(b) Upon surrender of the current certificate of registration or cab card, the new licensing fees due shall be reduced by the amount of the licensing fees previously paid for the same period for which new fees are being charged.

((~~(2)~~)) (5) The proceeds from the fees collected under ((~~subsection (1) of~~)) this section shall be distributed in accordance with RCW 46.68.035.

Sec. 4. RCW 46.68.035 and 2000 2nd sp.s. c 4 s 8 are each amended to read as follows:

All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:

(1) The sum of two dollars for each vehicle shall be deposited into the multimodal transportation account, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of two dollars shall be credited to the current county expense fund.

(2) The proceeds from the surcharge collected under RCW 46.16.070(3) must be deposited into the motor vehicle fund.

(3) All fees collected under RCW 46.16.070(1) for motor homes, less the distribution required under subsection (1) of this section, must be deposited into the motor vehicle fund.

(4) The remainder shall be distributed as follows:

(a) 23.677 percent shall be deposited into the state patrol highway account of the motor vehicle fund;

(b) 1.521 percent shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund; and

Sec. 5. RCW 46.16.071 and 1996 c 315 s 4 are each amended to read as follows:

(1) In addition to the fees set forth in RCW 46.16.070, there shall be paid and collected annually upon registration, a fee of one dollar for each motor home, truck, motor truck, truck tractor, road tractor, tractor, bus, auto stage, or for hire vehicle with seating capacity of more than six, notwithstanding the provisions of RCW 46.16.070.

(2) In addition to the fees set forth in RCW 46.16.085, there shall be paid and collected annually upon registration, a fee of one dollar for each trailer, semitrailer, and pole trailer, notwithstanding the provisions of RCW 46.16.085.

(3) The proceeds from the fees collected under subsections (1) and (2) of this section shall be deposited into the highway safety fund, except that for each vehicle registered by a county auditor or agent to a county auditor under RCW 46.01.140, the proceeds shall be credited to the current county expense fund.

Sec. 6. RCW 46.68.090 and 1999 c 269 s 2 and 1999 c 94 s 6 are each reenacted and amended to read as follows:

(1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for purposes enumerated in (a) and (b) of this subsection. The remaining net tax amount shall be distributed monthly by the state treasurer in ((~~the proportions set forth in (c) through (l)~~)) accordance with subsections (2) and (3) of this ((~~subsection~~)) section.

(a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;

(b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly((;)).

(2) All of the remaining net tax amount collected under RCW 82.36.025(1) and 82.38.030(1) shall be distributed as set forth in (a) through (j) of this subsection.

((~~(c)~~)) (a) For distribution to the motor vehicle fund ((~~an amount equal to 44.387 percent~~)) to be expended for highway purposes of the state as defined in RCW 46.68.130, the following amounts:

(i) 44.387 percent of the net tax amount collected under RCW 82.36.025(1); and

(ii) 100 percent of the net tax amount collected under RCW 82.36.025 (2), (3), and (4) and 82.38.030(2);

((~~(d)~~)) (b) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent of the net tax amount collected under RCW 82.36.025(1) to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.

The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:

(i) Accident experience;

(ii) Fatal accident experience;

(iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and

(iv) Continuity of development of the highway transportation network.

Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection ((~~(1)(d)~~)) (2)(b);

((~~(e)~~)) (c) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent of the net tax amount collected under RCW 82.36.025(1);

((~~(f)~~)) (d) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent of the net tax amount collected under RCW 82.36.025(1);

((~~(g)~~)) (e) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent of the net tax amount collected under RCW 82.36.025(1);

((~~(h)~~)) (f) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent of the net tax amount collected under RCW 82.36.025(1) and expended in accordance with RCW 47.26.086;

((~~(i)~~)) (g) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent of the net tax amount collected under RCW 82.36.025(1) in accordance with RCW 46.68.110;

((~~(j)~~)) (h) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent of the net tax amount collected under RCW 82.36.025(1): (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

((~~(k)~~)) (i) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent of the net tax amount collected under RCW 82.36.025(1). These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;

((~~(l)~~)) (j) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent of the net tax amount collected under RCW 82.36.025(1) and expended in accordance with RCW 36.79.020.

((~~(2)~~)) (3) All of the remaining net tax amount collected under RCW 82.36.025 (2), (3), and (4) and 82.38.030 (2), (3), and (4) shall be deposited into the motor vehicle fund.

(4) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

Sec. 7. RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.

(3) Beginning July 1, 2002, and through June 30, 2003, there is levied and collected an additional tax of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section.

(4) Beginning July 1, 2003, there is levied and collected an additional tax of one and one‑half percent of the selling price on each retail sale of a motor vehicle in this state, other than car rentals taxed under subsection (2) of this section.

(5) For purposes of subsections (3) and (4) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off‑road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.

(6) The revenue collected under subsections (3) and (4) of this section must be deposited into the multimodal transportation account created in RCW 47.66.070.

(7) The taxes imposed under this chapter shall apply to successive retail sales of the same property.

((~~(4)~~)) (8) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 8. RCW 82.12.020 and 1999 c 358 s 9 are each amended to read as follows:

(1) There is hereby levied and there shall be collected from every person in this state a tax or excise for the privilege of using within this state as a consumer: (a) Any article of tangible personal property purchased at retail, or acquired by lease, gift, repossession, or bailment, or extracted or produced or manufactured by the person so using the same, or otherwise furnished to a person engaged in any business taxable under RCW 82.04.280 (2) or (7); or (b) any canned software, regardless of the method of delivery, but excluding canned software that is either provided free of charge or is provided for temporary use in viewing information, or both.

(2) This tax shall apply to the use of every service defined as a retail sale in RCW 82.04.050(3)(a) and the use of every article of tangible personal property, including property acquired at a casual or isolated sale, and including byproducts used by the manufacturer thereof, except as hereinafter provided, irrespective of whether the article or similar articles are manufactured or are available for purchase within this state.

(3) Except as provided in RCW 82.12.0252, payment by one purchaser or user of tangible personal property or service of the tax imposed by chapter 82.08 or 82.12 RCW shall not have the effect of exempting any other purchaser or user of the same property or service from the taxes imposed by such chapters.

(4) The tax shall be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rates in effect for the retail sales tax under RCW 82.08.020.

Sec. 9. RCW 82.12.045 and 1996 c 149 s 19 are each amended to read as follows:

(1) In the collection of the use tax on motor vehicles, the department of revenue may designate the county auditors of the several counties of the state as its collecting agents. Upon such designation, it shall be the duty of each county auditor to collect the tax at the time an applicant applies for the registration of, and transfer of title to, the motor vehicle, except in the following instances:

(a) Where the applicant exhibits a dealer's report of sale showing that the retail sales tax has been collected by the dealer;

(b) Where the application is for the renewal of registration;

(c) Where the applicant presents a written statement signed by the department of revenue, or its duly authorized agent showing that no use tax is legally due; or

(d) Where the applicant presents satisfactory evidence showing that the retail sales tax or the use tax has been paid by ((~~him~~)) the applicant on the vehicle in question.

(2) The term "motor vehicle," as used in this section means and includes all motor vehicles, trailers and semitrailers used, or of a type designed primarily to be used, upon the public streets and highways, for the convenience or pleasure of the owner, or for the conveyance, for hire or otherwise, of persons or property, including fixed loads, facilities for human habitation, and vehicles carrying exempt licenses.

(3) It shall be the duty of every applicant for registration and transfer of certificate of title who is subject to payment of tax under this section to declare upon ((~~his~~)) the application the value of the vehicle for which application is made, which shall consist of the consideration paid or contracted to be paid therefor.

(4) Each county auditor who acts as agent of the department of revenue shall at the time of remitting license fee receipts on motor vehicles subject to the provisions of this section pay over and account to the state treasurer for all use tax revenue collected under this section, after first deducting as ((~~his~~)) a collection fee the sum of two dollars for each motor vehicle upon which the tax has been collected. All revenue received by the state treasurer under this section shall be credited to the general fund. The auditor's collection fee shall be deposited in the county current expense fund. A duplicate of the county auditor's transmittal report to the state treasurer shall be forwarded forthwith to the department of revenue.

(5) Any applicant who has paid use tax to a county auditor under this section may apply to the department of revenue for refund thereof if he or she has reason to believe that such tax was not legally due and owing. No refund shall be allowed unless application therefor is received by the department of revenue within the statutory period for assessment of taxes, penalties, or interest prescribed by RCW 82.32.050(3). Upon receipt of an application for refund the department of revenue shall consider the same and issue its order either granting or denying it and if refund is denied the taxpayer shall have the right of appeal as provided in RCW 82.32.170, 82.32.180 and 82.32.190.

(6) The provisions of this section shall be construed as cumulative of other methods prescribed in chapters 82.04 to 82.32 RCW, inclusive, for the collection of the tax imposed by this chapter. The department of revenue shall have power to promulgate such rules as may be necessary to administer the provisions of this section. Any duties required by this section to be performed by the county auditor may be performed by the director of licensing but no collection fee shall be deductible by said director in remitting use tax revenue to the state treasurer.

(7) The use tax revenue collected under RCW 82.08.020 (3) and (4) will be deposited in the multimodal transportation account created in RCW 47.66.070.

Sec. 10. RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:

(1) A motor vehicle fuel tax rate of twenty-three cents per gallon ((~~shall apply~~)) applies to the sale, distribution, or use of motor vehicle fuel.

(2) Beginning July 1, 2002, an additional and cumulative motor fuel tax rate of three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(3) Beginning July 1, 2003, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(4) Beginning July 1, 2004, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

Sec. 11. RCW 82.38.030 and 2001 c 270 s 6 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 on each~~)) of twenty-three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature.

(2) Beginning July 1, 2002, an additional and cumulative tax rate of six cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(3) Beginning July 1, 2003, an additional and cumulative special fuel tax rate of three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(4) Beginning July 1, 2004, an additional and cumulative special fuel tax rate of three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(5) The tax is imposed ((~~by subsection (1) of this section is imposed~~)) when:

(a) Special fuel is removed in this state from a terminal if the special fuel is removed at the rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(b) Special fuel is removed in this state from a refinery if either of the following applies:

(i) The removal is by bulk transfer and the refiner or the owner of the special fuel immediately before the removal is not a licensee; or

(ii) The removal is at the refinery rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(i) The entry is by bulk transfer and the importer is not a licensee; or

(ii) The entry is not by bulk transfer;

(d) Special fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the special fuel;

(e) Blended special fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended special fuel subject to tax is the difference between the total number of gallons of blended special fuel removed or sold and the number of gallons of previously taxed special fuel used to produce the blended special fuel;

(f) Dyed special fuel is used on a highway, as authorized by the internal revenue code, unless the use is exempt from the special fuel tax;

(g) Special fuel purchased by an international fuel tax agreement licensee under RCW 82.38.320 is used on a highway; and

(h) Special fuel is sold by a licensed special fuel supplier to a special fuel distributor, special fuel importer, or special fuel blender and the special fuel is not removed from the bulk transfer-terminal system.

((~~(3)~~)) (6) The tax imposed by this chapter, if required to be collected by the licensee, is held in trust by the licensee until paid to the department, and a licensee who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW. A person, partnership, corporation, or corporate officer who fails to collect the tax imposed by this section, or who has collected the tax and fails to pay it to the department in the manner prescribed by this chapter, is personally liable to the state for the amount of the tax.

Sec. 12. RCW 82.38.035 and 2001 c 270 s 7 are each amended to read as follows:

(1) A licensed supplier shall remit tax on special fuel to the department as provided in RCW 82.38.030((~~(2)~~)) (5)(a). On a two-party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer shall remit the tax.

(2) A refiner shall remit tax to the department on special fuel removed from a refinery as provided in RCW 82.38.030((~~(2)~~)) (5)(b).

(3) An importer shall remit tax to the department on special fuel imported into this state as provided in RCW 82.38.030((~~(2)~~)) (5)(c).

(4) A blender shall remit tax to the department on the removal or sale of blended special fuel as provided in RCW 82.38.030((~~(2)~~)) (5)(e).

(5) A dyed special fuel user shall remit tax to the department on the use of dyed special fuel as provided in RCW 82.38.030((~~(2)~~)) (5)(f).

Sec. 13. RCW 82.38.045 and 1998 c 176 s 54 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030((~~(1)~~)) if, at the time of removal:

(1) The position holder with respect to the special fuel is a person other than the terminal operator and is not a licensee;

(2) The terminal operator is not a licensee;

(3) The position holder has an expired internal revenue service notification certificate issued under chapter 26, C.F.R. Part 48; or

(4) The terminal operator had reason to believe that information on the notification certificate was false.

Sec. 14. RCW 82.38.047 and 1998 c 176 s 55 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030((~~(1)~~)) if, in connection with the removal of special fuel that is not dyed or marked in accordance with internal revenue service requirements, the terminal operator provides a person with a bill of lading, shipping paper, or similar document indicating that the special fuel is dyed or marked in accordance with internal revenue service requirements.

Sec. 15. RCW 82.38.075 and 1983 c 212 s 1 are each amended to read as follows:

In order to encourage the use of nonpolluting fuels, an annual license fee in lieu of the tax imposed by RCW 82.38.030 shall be imposed upon the use of natural gas as defined in this chapter or on liquified petroleum gas, commonly called propane, which is used in any motor vehicle, as defined in RCW 46.04.320, which shall be based upon the following schedule as adjusted by the formula set out below:

VEHICLE TONNAGE (GVW) FEE

0 - 6,000 $ 45

6,001 - 10,000 $ 45

10,001 - 18,000 $ 80

18,001 - 28,000 $110

28,001 - 36,000 $150

36,001 and above $250

To determine the actual annual license fee imposed by this section for a registration year, the appropriate dollar amount set out in the above schedule shall be multiplied by the ((~~motor vehicle~~)) special fuel tax rate in cents per gallon as established by RCW ((~~82.36.025~~)) 82.38.030 effective on July 1st of the preceding calendar year and the product thereof shall be divided by 12 cents.

The department of licensing, in addition to the foregoing fee, shall charge a further fee of five dollars as a handling charge for each license issued.

The director of licensing shall be authorized to prorate the vehicle tonnage fee so that the annual license required by this section will correspond with the staggered vehicle licensing system.

A decal or other identifying device issued upon payment of these annual fees shall be displayed as prescribed by the department as authority to purchase this fuel.

Persons selling or dispensing natural gas or propane may not sell or dispense this fuel for their own use or the use of others into tanks of vehicles powered by this fuel which do not display a valid decal or other identifying device as provided in this section.

Vehicles registered in jurisdictions outside the state of Washington are exempt from this section.

Any person selling or dispensing natural gas or propane into the tank of a motor vehicle powered by this fuel, except as prescribed in this chapter, is subject to the penalty provisions of this chapter.

NEW SECTION. Sec. 16. This act takes effect July 1, 2002.

NEW SECTION. Sec. 17. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.