FINAL BILL REPORT

SSB 6399

                                   C 51 L 88

BYSenate Committee on Transportation (originally sponsored by Senators Barr, Patterson, Anderson, Vognild, Rasmussen, Conner, Bauer, Zimmerman and Smith)

Exempting farmers, contractors, and loggers from certain special fuel reporting requirements.

Senate Committee on Transportation

House Committe on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

"Special fuel" includes combustible gases and liquids suitable for the generation of power for propulsion of motor vehicles, such as diesel, propane and natural gas.  However, it does not include motor vehicle fuel such as gasoline and gasohol.

The Department of Licensing requires users of off- road fuel who hold a special fuel license to report this "off- road" usage on an annual basis.

The department is planning to update its rules to require all licensed special fuel users to record the total gallons of fuel entered into each piece of equipment used "off-road" by date and by equipment or vehicle identification number.  This action causes concern to farmers and loggers, given the many pieces of machinery that they use on a daily basis.  During harvest, a farmer may have a number of tractors and other pieces of machinery in the field requiring refueling throughout the day.  Accurate measuring demands sophisticated and costly metering devices and many farmers and loggers do not have the equipment in their vehicles and on their pumps to measure the amounts of fuel that they use on a daily basis accurately.  Daily itemization of fuel for each piece of machinery during 24-hour per day harvest periods represents a serious bookkeeping problem.

The department issued a memorandum in October recognizing the special fuel user's concerns, placing a temporary moratorium on the original order, stating that the department would be proposing administrative rules in the near future and would work with the Legislature to seek possible legislative changes.

SUMMARY:

Licensed special fuel users who use special fuel off-highway in farming, logging and construction operations will be exempt from keeping records of the gallons of fuel used off public highways of the state.  They are exempt from keeping the following records:  the number of gallons used for any purpose not subject to the special fuel tax; a breakdown of on-highway and off-highway special fuel usage on a daily basis; a complete record by month of the total gallons of special fuel used and the purposes for which it was used.

Every special fuel user filing a tax report shall certify and bear the burden of proof as to the number of gallons of special fuel used off-highway.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 91   0

EFFECTIVE:June 9, 1988