| Washington State House of Representatives |
BILL ANALYSIS |
| Transportation Committee | |
HB 1294
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Providing an exemption from special fuel taxes for regional transit authorities.
Sponsors: Representatives B. Sullivan, Rodne, Eddy, Chase, Simpson, Haler and Roberts.
Brief Summary of Bill |
|
|
Hearing Date: 2/1/07
Staff: Kathryn Leathers (786-7114).
Background:
Transportation funding in Washington is supported by a variety of taxes and fees. The majority
of statewide transportation revenue comes from a tax on motor vehicle and special fuel, vehicle
licensing fees, and gross weight fees. Vehicle fuels are taxed under the Motor Vehicle Fuel Tax
Act or the Special Fuel Tax Act.
The special fuel tax applies to all combustible gases and liquids suitable for generating power to
propel motor vehicles, except gasoline. The main types of fuels subject to the special fuel tax are
diesel, natural gas, propane, butane, and a certain dyed fuel prescribed by federal law.
Several categories of uses are exempt from the special fuel tax, including using such fuel for
street and highway construction and maintenance purposes in government owned or operated
motor vehicles, in publicly owned fire fighting equipment, and in special mobile equipment
related to construction.
In addition, urban passenger transportation systems and other specially-defined carriers are
exempt from paying the special fuel tax. "Urban passenger transportation system" means every
publicly or privately owned transportation system that has bus fares as its principal source of
revenue. An urban passenger transportation system is exempt from the special fuel tax only if its
direct or connecting bus routes do not exceed 25 miles beyond the corporate limits of the county
where the vehicle started.
An urban passenger transportation system meeting the criteria of this exemption is entitled to a
refund or credit against special fuel used by its urban transportation vehicles. No refund or credit
is granted, however, on special fuel used by an urban transportation vehicle on any trip where a
portion of the trip is more than 25 road miles beyond the corporate limits of the county in which
the trip originated.
Regional transportation authorities meet the basic definition of urban passenger transportation
systems, except that bus fares are typically not an authority's principal source of revenue. A
regional transit authority provides, and contracts with bus service providers to provide, bus routes
that extend 25 miles or more beyond the county in which the buses originated.
Summary of Bill:
The definition of "urban passenger transportation system" is modified to expressly include a
regional transit authority authorized to provide public transportation services extending across
the corporate limits between two or more counties. The definition is further modified to include
any urban transportation provider that has bus fares as "a" source, and not as its "principal"
source, of revenue.
A regional transit authority is exempt from the special fuel tax even if it operates direct and
connecting bus routes extending further than 25 road miles beyond the corporate limits of the
county where the buses started.
Refunds and credits must be granted on special fuel used on a bus trip provided by or on behalf
of a regional transit authority, even where a portion of the trip is more than 25 road miles beyond
the corporate limits of the county in which the trip originated.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.