| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Finance Committee | |
HB 3188
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: Exempting waste vegetable oil from excise tax.
Sponsors: Representatives Roach, Hurst, McCune and Dunn.
Brief Summary of Bill |
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Hearing Date: 2/6/08
Staff: Jeff Mitchell (786-7139).
Background:
Retail sales and use taxes are imposed by the state, most cities, and all counties. Retail sales
taxes are imposed on retail sales of most articles of tangible personal property and some services.
The state tax rate is 6.5 percent. Local tax rates vary from 0.5 percent to 2.4 percent depending
on the location.
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.
Special fuel subject to the special fuel tax is exempt from retail sales and use taxes. However, if
special fuel is exempt from the special fuel tax then retail sales and use taxes usually apply.
Summary of Bill:
The use of waste vegetable oil used by a person in the production of biodiesel for
noncommercial use is exempt from special fuel taxes.
The sale of waste vegetable oil used by a person in the production of biodiesel for
noncommercial use is exempt from retail sales and use taxes.
Waste vegetable oil is defined as cooking oil gathered from restaurants or commercial food
processors.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect on July 1, 2008.