S-3545.3  _______________________________________________

                         SENATE BILL 6563

          _______________________________________________

State of Washington   57th Legislature        2002 Regular Session

By Senator Swecker

Read first time 01/21/2002.  Referred to Committee on Transportation.

Submitting a fuel tax rate change to a vote of the people.

    AN ACT Relating to motor vehicle taxes; reenacting and amending RCW 82.36.025; creating a new section; providing for submission of this act to a vote of the people; and declaring an emergency.

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

NEW SECTION. Sec. 1.  The legislature finds that Washington's transportation system is in crisis, and that part of the reason for the state's infrastructure problem is the failure of the motor vehicle fuel tax rate to keep up with the rising costs attributable to inflation.  The legislature desires that the gas tax keep pace with inflation to better meet the transportation needs of the state.

    Sec. 2.  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) Until July 1, 2003, a motor vehicle fuel tax rate of ((twenty-three)) twenty-six cents per gallon ((shall apply)) applies to the sale, distribution, or use of motor vehicle fuel.

(2) July 1, 2003, through June 30, 2004, a motor vehicle fuel tax rate of twenty-nine cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(3) Beginning July 1, 2004, a motor vehicle fuel tax rate of thirty-two cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(4) Beginning July 1, 2005, and every biennium thereafter, the motor vehicle fuel tax rate under subsection (3) of this section may be adjusted by the legislature to reflect increases in the implicit price deflator for the United States as defined and officially reported by the United States department of labor.  The adjustment shall not exceed the rate of inflation as indicated by the implicit price deflator, unless an adjustment in excess of the rate of inflation is approved by a majority of voters voting on a proposition to do so.

NEW SECTION. Sec. 3.  The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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