HOUSE BILL REPORT

SB 6192

BYSenators Patterson, Owen, Conner, Hansen, von Reichbauer, Craswell and McMullen

Exempting from sales and use tax fuel purchased for marine use by the state ferry system.

House Committe on Transportation

Majority Report:  Do pass.  (23)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Day, Doty, Fisher, Fox, Gallagher, Hankins, Haugen, Heavey, Jacobsen, Jones, Meyers, Patrick, Prince, Schmidt, Smith, D. Sommers, Sutherland, Vekich, J. Williams and S. Wilson.

House Staff:Gene Schlatter (786-7316)

AS REPORTED BY COMMITTEE ON TRANSPORTATION FEBRUARY 23, 1988

BACKGROUND:

Fuel used for nonhighway purposes is not subject to the 18-cents-per- gallon gas tax, but is subject to sales and use tax unless specifically exempted.  Public transportation systems are exempt from both fuel taxes and sales and use taxes.  The Washington State Ferry System is exempt from the fuel tax, but is subject to the sales and use tax.

SUMMARY:

Fuel purchased for marine use by the state Ferry System is exempt from the sales and use tax.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Jo Ann Young, Ferry Riders Coalition; Ben Dysart, Ferry Riders Coalition.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The fuel consumed by the Ferry System will be treated the same as fuel consumed by public transit agencies.

House Committee - Testimony Against:      None Presented.