SENATE BILL REPORT

SB 6399

BYSenators Barr, Patterson, Anderson, Vognild, Rasmussen, Conner, Bauer, Zimmerman and Smith

Exempting farmers and loggers from certain special fuel reporting requirements.

Senate Committee on Transportation

Senate Hearing Date(s):February 2, 1988

Majority Report:  That Substitute Senate Bill No. 6399 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Bender, Conner, DeJarnatt, Garrett, Hansen, Kiskaddon, McMullen, Metcalf, Owen, Sellar.

Senate Staff:Cathy Mayo (786-7304)

                  February 3, 1988

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 2, 1988

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 the motor vehicle fuel described in Chapter 82.36 of the RCW, such as gasoline and gasohol.

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

The Department of Licensing 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 which is used "off-road" by date and by equipment or vehicle identification number.  This action is cause for 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 farmer 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 of Licensing 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 and logging operations will be exempt from keeping records of the gallons of fuel that is used off of the public highways of the state.  These individuals are exempt from keeping the following records: (l) the number of gallons that used for any purpose not subject to the special fuel tax;  (2) a breakdown of on-highway and off-highway special fuel usage on a daily basis; (3) a complete record by month of the total gallons of special fuel used and the purposes for which the fuel 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.

EFFECT OF PROPOSED SUBSTITUTE:

Licensed special fuel users who use special fuel off-highway for construction purposes shall be exempt from keeping records of the gallons of fuel used off of the public highways, the same as those engaged in farming and logging operations.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Bill Pickell, Washington Contract Loggers Association (for); Dennis Hadaller, Dennis Hadaller Truck, Inc. (for); Randy Ray, Washington Wheat Growers (for); Duke Schaub, AGC (for)