BILL REQ. #: S-4462.1
| State of Washington | 59th Legislature | 2006 Regular Session |
Read first time 01/30/2006. Referred to Committee on Transportation.
AN ACT Relating to cooperative agreements concerning the taxation of motor vehicle fuels and special fuels sold on Indian lands; adding new sections to chapter 43.06 RCW; adding new sections to chapter 82.36 RCW; adding new sections to chapter 82.38 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature intends to further the
government-to-government relationship between the state of Washington
and Indians in the state of Washington by authorizing the governor to
enter into contracts concerning the sale of motor vehicle fuels and
special fuels. The legislature finds that these tax contracts will
provide a means to address critical transportation and law enforcement
needs in Indian country, and provide needed revenues for tribal
governments and Indian persons, and enhance enforcement of the state's
fuel tax laws, ultimately saving the state money and reducing conflict.
This act does not constitute a grant of taxing authority to any Indian
tribe nor does it provide a precedent for the taxation of non-Indians
on fee land.
NEW SECTION. Sec. 2 A new section is added to chapter 43.06 RCW
to read as follows:
(1) The governor may enter into fuel tax contracts concerning the
sale of motor vehicle fuels and special fuels. All fuel tax contracts
shall meet the requirements for fuel tax contracts under this section.
Except for fuel tax contracts under section 3 of this act, the rates
and exemption terms of a fuel tax contract are not effective unless
authorized in a bill enacted by the legislature.
(2) Fuel tax contracts shall be in regard to retail sales in which
Indian retailers make delivery and physical transfer of possession of
the fuel from the seller to the buyer within Indian country, and are
not in regard to transactions by non-Indian retailers.
(3) A fuel tax contract with a tribe shall provide for a tribal
fuel tax in lieu of all state motor vehicle fuel taxes or special fuel
taxes on sales of fuel in Indian country by Indian retailers. The
tribe may allow an exemption for sales to tribal members.
(4) Fuel tax contracts shall provide that retailers shall purchase
motor vehicle fuel and special fuel only from:
(a) Distributors, suppliers, or importers licensed to do business
in the state of Washington;
(b) Distributors, suppliers, or importers who, although not
licensed to do business in the state of Washington, agree to comply
with the terms of the fuel tax contract, are certified to the state as
having so agreed, and who do in fact so comply. However, the state may
in its sole discretion exercise its administrative and enforcement
powers over such distributors, suppliers, or importers to the extent
permitted by law;
(c) A tribal distributor, supplier, or importer that purchases only
from a distributor, supplier, or importer described in (a), (b), or (d)
of this subsection; and
(d) A tribal supplier.
(5) Fuel tax contracts shall be automatically renewable absent an
uncorrected material compliance violation resulting in termination as
provided by this section.
(6) Fuel tax contracts shall include provisions for compliance,
such as transport and notice requirements, inspection procedures,
recordkeeping, and audit requirements.
(7) Tax revenue retained by a tribe must be used for essential
government services. Use of tax revenue for subsidization of fuel
retailers is prohibited.
(8) The fuel tax contract may include provisions to resolve
disputes using a nonjudicial process, such as mediation.
(9) The governor may delegate the power to negotiate fuel tax
contracts to the department of licensing.
(10) Information received by the state or open to state review
under the terms of a fuel tax contract is subject to the provisions of
RCW 82.32.330.
(11) It is the intent of the legislature that the department of
licensing continue the duties and authority under chapters 82.34 and
82.36 RCW, and therefore the department of licensing is responsible for
enforcement activities that come under the terms of chapters 82.34 and
82.36 RCW.
(12) Each fuel tax contract shall include a procedure for notifying
the other party that a violation has occurred, a procedure for
establishing whether a violation has in fact occurred, an opportunity
to correct such violation, and a provision providing for termination of
the contract should the violation fail to be resolved through this
process, such termination subject to mediation should the terms of the
contract so allow. A contract shall provide for termination of the
contract if resolution of a dispute does not occur within twenty-four
months from the time notification of a violation has occurred.
Intervening violations do not extend this time period. In addition,
the contract shall include provisions delineating the respective roles
and responsibilities of the tribe and the department of licensing.
(13) For purposes of this section and sections 3 through 7 of this
act:
(a) "Essential government services" means services such as tribal
transportation, police, fire, administration, public facilities, and
other governmental services;
(b) "Indian retailer" or "retailer" means (i) a retailer wholly
owned and operated by an Indian tribe, (ii) a business wholly owned and
operated by a tribal member and licensed by the tribe, or (iii) a
business owned and operated by the Indian person or persons in whose
name the land is held in trust; and
(c) "Indian tribe" or "tribe" means a federally recognized Indian
tribe located within the jurisdictional boundaries of the state of
Washington.
NEW SECTION. Sec. 3 A new section is added to chapter 43.06 RCW
to read as follows:
(1) The governor is authorized to enter into fuel tax contracts
with any tribe. Each contract adopted under this section shall provide
that the tribal motor vehicle fuel tax rate be one hundred percent of
the state motor vehicle fuel tax, and that the tribal special fuel tax
rate be one hundred percent of the state special fuel tax. The tribal
tax is in lieu of the state tax as provided in section 2(3) of this
act.
(2) A fuel tax contract under this section is subject to section 2
of this act.
NEW SECTION. Sec. 4 A new section is added to chapter 82.36 RCW
to read as follows:
The tax levied by RCW 82.36.020 does not apply to sales of motor
vehicle fuel by an Indian retailer during the effective period of a
fuel tax contract, subject to section 2 of this act.
NEW SECTION. Sec. 5 A new section is added to chapter 82.38 RCW
to read as follows:
The tax levied by RCW 82.38.030 does not apply to sales of special
fuels by an Indian retailer during the effective period of a fuel tax
contract, subject to section 2 of this act.
NEW SECTION. Sec. 6 A new section is added to chapter 82.36 RCW
to read as follows:
The taxes imposed by this chapter do not apply to the sale, use,
consumption, handling, possession, or distribution of motor vehicle
fuel by an Indian retailer during the effective period of a fuel tax
contract, subject to section 2 of this act.
NEW SECTION. Sec. 7 A new section is added to chapter 82.38 RCW
to read as follows:
The taxes imposed by this chapter do not apply to the sale, use,
consumption, handling, possession, or distribution of motor vehicle
fuel by an Indian retailer during the effective period of a fuel tax
contract, subject to section 2 of this act.