Brief Description: Disallowing a tax deduction for motor vehicle fuel handling losses.

Sponsors: Representatives Cooper, Hankins, G. Simpson, Wood and Upthegrove.

Hearing Date: 2/9/04

Staff: Jerry Long (786-7306).

Background:

Under current law, those required to remit motor vehicle fuel tax are able to take a deduction from their motor vehicle fuel tax return for a handling loss deduction. The deduction allowed is a fixed rate of .0025 percent for motor vehicle fuel suppliers acting as distributors, and .0031 percent for all other motor vehicle fuel licensees. The handling loss allowance does not apply to special fuel tax.

Summary of Bill:

The handling loss deduction on motor vehicle fuel tax is repealed.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.