SENATE BILL REPORT
SB 5304


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 Passed Senate, March 6, 2007

Title: An act relating to special fuel taxes.

Brief Description: Providing an exemption from special fuel taxes for regional transit authorities.

Sponsors: Senators Eide, Tom, Haugen, Shin and Kline.

Brief History:

Committee Activity: Transportation: 2/06/2007, 2/12/07 [DP, DNP, w/oRec].

Passed Senate: 3/06/07, 40-8.


SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass.Signed by Senators Haugen, Chair; Marr, Vice Chair; Murray, Vice Chair; Swecker, Ranking Minority Member; Berkey, Delvin, Eide, Jacobsen, Kastama, Kauffman, Kilmer, Pflug, Sheldon and Spanel.

Minority Report: Do not pass.Signed by Senators Benton and Holmquist.

Minority Report: That it be referred without recommendation.Signed by Senator Clements.

Staff: Martha Hankins (786-7429)

Background: State taxes on vehicle fuels provide a primary source of transportation funding in Washington. The motor vehicle fuel tax applies to gasoline; other gas and liquid fuels, including diesel, natural gas, propane, and butane, are subject to the special fuel tax.
   
Urban passenger transportation systems are defined as having a seating capacity of over 15 persons and passenger fares as the principal source of revenue. They are exempt from paying the state special fuel taxes except for direct or connecting bus routes not extending 25 miles beyond the county of origin.


Summary of Bill:
The definition of "urban passenger transportation systems" is modified to specifically include systems operated by a regional transit authority authorized to operate between counties. The definition is also modified to include any urban transportation provider that has passenger fare collections as a source of revenue.

Regional transportation authority routes can extend more than 25 miles beyond the corporate limits of the county where the trip originates and still be eligible for the special fuel tax exemption.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: Expressing support for the bill.


Persons Testifying:
PRO: Ron Main, Sound Transit.