SENATE BILL REPORT

SB 6032

BYSenator Smitherman

Relating to ferry fuel.

Senate Committee on Transportation

Senate Hearing Date(s):March 5, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, Conner, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Smitherman, von Reichbauer, West.

Senate Staff:Gene Schlatter (786-7316)

                  March 6, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 5, 1987

BACKGROUND:

Fuel used for non-highway 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

Senate Committee - Testified: No one