E2SHB 2053

SENATE BILL REPORT
E2SHB 2053

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.

As Reported By Senate Committee On:
Ways & Means, April 2, 2007

Title: An act relating to improving the availability of motor vehicle fuel in the event of an electric power outage or interruption in electric service.

Brief Description: Providing for improved availability of motor vehicle fuel during power outages or interruptions in electrical service.

Sponsors: House Committee on Finance (originally sponsored by Representatives Goodman, Springer, O'Brien, Dunshee, Eddy, Blake, Lovick, Upthegrove, Green, Simpson and Hurst).

Majority Report: Do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Carrell, Hatfield, Hobbs, Honeyford, Keiser, Kohl-Welles, Parlette, Rasmussen, Regala, Roach, Rockefeller, Schoesler and Tom.

Minority Report: That it be referred without recommendation.Signed by Senators Fairley and Oemig.

Background: Washington's main business tax is the business and occupation (B&O) tax. The B&O tax is imposed on the gross receipts of business activities conducted within the state, without deduction for the costs of doing business. Revenues are deposited in the State General Fund. There are several exemptions for specific types of business activities and certain deductions and credits permitted under the B&O tax statutes.

Summary of Engrossed Second Substitute Bill: A credit is created for use against any B&O tax due for gasoline service stations or persons selling motor vehicle or special fuel that purchase an alternative power generation device. An alternative power generation device is a device capable of providing electrical power for gasoline service station pumps during periods when regular electrical power is lost. The credit is equal to the lesser of 50 percent of the cost of the alternative power generation device or $50,000. The credit expires on June 30, 2011.