S-3628.2
SENATE BILL 6193
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State of Washington | 64th Legislature | 2016 Regular Session |
By Senator King
Prefiled 01/08/16. Read first time 01/11/16. Referred to Committee on Transportation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.36.022 and 2007 c 515 s 20 are each amended to read as follows:
(1) It is the intent and purpose of this chapter that the tax shall be imposed at the time and place of the first taxable event and upon the first taxable person within this state. Any person whose activities would otherwise require payment of the tax imposed by RCW
82.36.020 but who is exempt from the tax nevertheless has a precollection obligation for the tax that must be imposed on the first taxable event within this state. Failure to pay the tax with respect to a taxable event
((shall)) does not prevent tax liability from arising by reason of a subsequent taxable event.
(2) It is the intent of the legislature that, in the absence of a tribal fuel tax agreement, as referenced in RCW 82.36.450, applicable taxes imposed by this chapter be collected on motor vehicle fuel sold by a business licensed by an Indian tribal organization to any person who is not an enrolled member of the federally recognized Indian tribe within whose jurisdiction the sale takes place consistent with collection of these taxes generally within the state. The legislature finds that applicable collection and enforcement measures under this chapter are reasonably necessary to prevent fraudulent transactions and place a minimal burden on the Indian tribal organization. For the purposes of this subsection: "Indian tribal organization" means a federally recognized Indian tribe, or tribal entity, and includes an Indian wholesaler or retailer that is owned by an Indian who is an enrolled tribal member conducting business under tribal license or similar tribal approval within Indian country; and "Indian country" is defined in the manner set forth in 18 U.S.C. Sec. 1151. Sec. 2. RCW 82.36.026 and 2007 c 515 s 4 are each amended to read as follows:
(1) A licensed supplier shall be liable for and pay tax to the department as provided in RCW
82.36.020. On a two-party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer shall be liable for and pay the tax.
(2) A refiner shall be liable for and pay tax to the department on motor vehicle fuel removed from a refinery as provided in RCW
82.36.020(2)(b).
(3) A licensed importer shall be liable for and pay tax to the department on motor vehicle fuel imported into this state as provided in RCW
82.36.020(2)(c).
(4) A licensed blender shall be liable for and pay tax to the department on the removal or sale of blended motor vehicle fuel as provided in RCW
82.36.020(2)(e).
(5) Nothing in this chapter shall prohibit the licensee liable for payment of the tax under this chapter from including as a part of the selling price an amount equal to the tax.
(6) Any person who purchases motor vehicle fuel from a business licensed by an Indian tribal organization that does not have a fuel tax agreement with the state, as referenced in RCW 82.36.450, and who is not an enrolled member of the federally recognized Indian tribe within whose jurisdiction the sale takes place, is not exempt from the applicable taxes imposed by this chapter. For the purposes of this subsection: "Indian tribal organization" means a federally recognized Indian tribe, or tribal entity, and includes an Indian wholesaler or retailer that is owned by an Indian who is an enrolled tribal member conducting business under tribal license or similar tribal approval within Indian country; and "Indian country" is defined in the manner set forth in 18 U.S.C. Sec. 1151. Sec. 3. RCW 82.38.031 and 2007 c 515 s 33 are each amended to read as follows:
(1) It is the intent and purpose of this chapter that the tax
((shall)) must be imposed at the time and place of the first taxable event and upon the first taxable person within this state. Any person whose activities would otherwise require payment of the tax imposed by RCW
82.38.030 but who is exempt from the tax nevertheless has a precollection obligation for the tax that must be imposed on the first taxable event within this state. Failure to pay the tax with respect to a taxable event
((shall)) does not prevent tax liability from arising by reason of a subsequent taxable event.
(2) It is the intent of the legislature that, in the absence of a tribal fuel tax agreement, as referenced in RCW 82.38.310, applicable taxes imposed by this chapter be collected on motor vehicle fuel sold by a business licensed by an Indian tribal organization to any person who is not an enrolled member of the federally recognized Indian tribe within whose jurisdiction the sale takes place consistent with collection of these taxes generally within the state. The legislature finds that applicable collection and enforcement measures under this chapter are reasonably necessary to prevent fraudulent transactions and place a minimal burden on the Indian tribal organization. For the purposes of this subsection: "Indian tribal organization" means a federally recognized Indian tribe, or tribal entity, and includes an Indian wholesaler or retailer that is owned by an Indian who is an enrolled tribal member conducting business under tribal license or similar tribal approval within Indian country; and "Indian country" is defined in the manner set forth in 18 U.S.C. Sec. 1151. Sec. 4. RCW 82.38.035 and 2007 c 515 s 23 are each amended to read as follows:
(1) A licensed supplier shall be liable for and pay tax on special fuel to the department as provided in RCW
82.38.030(((7))) (9)(a). On a two-party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer
((shall be)) is liable for and pay the tax.
(2) A refiner shall be liable for and pay tax to the department on special fuel removed from a refinery as provided in RCW
82.38.030(((7))) (9)(b).
(3) A licensed importer shall be liable for and pay tax to the department on special fuel imported into this state as provided in RCW
82.38.030(((7))) (9)(c).
(4) A licensed blender shall be liable for and pay tax to the department on the removal or sale of blended special fuel as provided in RCW
82.38.030(((7))) (9)(e).
(5) A licensed dyed special fuel user shall be liable for and pay tax to the department on the use of dyed special fuel as provided in RCW
82.38.030(((7))) (9)(f).
(6) Nothing in this chapter prohibits the licensee liable for payment of the tax under this chapter from including as a part of the selling price an amount equal to such tax.
(7) Any person who purchases motor vehicle fuel from a business licensed by an Indian tribal organization that does not have a fuel tax agreement with the state, as referenced in RCW 82.38.310, and who is not an enrolled member of the federally recognized Indian tribe within whose jurisdiction the sale takes place, is not exempt from the applicable taxes imposed by this chapter. For the purposes of this subsection: "Indian tribal organization" means a federally recognized Indian tribe, or tribal entity, and includes an Indian wholesaler or retailer that is owned by an Indian who is an enrolled tribal member conducting business under tribal license or similar tribal approval within Indian country; and "Indian country" is defined in the manner set forth in 18 U.S.C. Sec. 1151. Sec. 5. RCW 82.38.035 and 2013 c 225 s 105 are each amended to read as follows:
(1) A licensed supplier is liable for and must pay tax on fuel as provided in RCW
82.38.030(((7))) (9) (a) and (i). On a two-party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer
((shall be)) is liable for and pay the tax.
(2) A refiner is liable for and must pay tax on fuel removed from a refinery as provided in RCW
82.38.030(((7))) (9)(b).
(3) A licensed distributor is liable for and must pay tax on fuel as provided in RCW
82.38.030(((7))) (9)(c).
(4) A licensed blender is liable for and must pay tax on fuel as provided in RCW
82.38.030(((7))) (9)(f).
(5) A licensed dyed special fuel user is liable for and must pay tax on fuel as provided in RCW
82.38.030(((7))) (9)(g).
(6) A terminal operator is jointly and severally liable for and must pay tax on fuel if, at the time of removal:
(a) The position holder of the fuel is a person other than the terminal operator and is not a licensee;
(b) The terminal operator is not a licensee;
(c) The position holder has an expired internal revenue notification certificate;
(d) The terminal operator has reason to believe that information on the internal revenue notification certificate is false.
(7) A terminal operator is jointly and severally liable for and must pay tax on special fuel if the special fuel is removed and is not dyed or marked in accordance with internal revenue service requirements, and the terminal operator provides a person with a bill of lading, shipping paper, or similar document indicating the special fuel is dyed or marked in accordance with internal revenue service requirements.
(8) International fuel tax agreement licensees, or persons operating motor vehicles under other reciprocity agreements entered into with the state of Washington, are liable for and must pay tax on fuel used to operate motor vehicles on state highways.
(9) Dyed special fuel users are liable for and must pay tax on dyed special fuel used on state highways unless the use of the fuel is exempt from the tax.
(10) Any person who purchases fuel from a business licensed by an Indian tribal organization that does not have a fuel tax agreement with the state, as referenced in RCW 82.38.310, and who is not an enrolled member of the federally recognized Indian tribe within whose jurisdiction the sale takes place, is not exempt from the applicable taxes imposed by this chapter. For the purposes of this subsection: "Indian tribal organization" means a federally recognized Indian tribe, or tribal entity, and includes an Indian wholesaler or retailer that is owned by an Indian who is an enrolled tribal member conducting business under tribal license or similar tribal approval within Indian country; and "Indian country" is defined in the manner set forth in 18 U.S.C. Sec. 1151. NEW SECTION. Sec. 6. Section 5 of this act takes effect July 1, 2016.
NEW SECTION. Sec. 7. Sections 1, 2, and 4 of this act expire July 1, 2016.
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