HOUSE BILL REPORT

HB 2065

BYRepresentatives R. Meyers, Schmidt, Vekich, Walk, Spanel, Brough, D. Sommers, Walker, Schoon, Youngsman and Tate

Exempting state and county ferry fuel sales and use tax.

House Committe on Transportation

Majority Report:  Do pass.  (26)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Betrozoff, Cantwell, Cooper, Day, G. Fisher, R. Fisher, Gallagher, Haugen, Heavey, Jones, Kremen, R. Meyers, Nelson, Patrick, Prentice, Prince, Smith, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

House Staff:Gene Schlatter (786-7316)

AS REPORTED BY COMMITTEE ON TRANSPORTATION FEBRUARY 27, 1989

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 and county ferry systems are exempt from the fuel tax, but are subject to the sales and use tax.

SUMMARY:

Fuel purchased for marine use by the state and county ferry systems is exempt from the sales and use tax.

Fiscal Note:      Requested February 22, 1989.

House Committee ‑ Testified For:    Terry McCarthy, Marine Division--Department of Transportation.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This provision resolves an equity issue between transit systems and the ferry systems.

House Committee - Testimony Against:      None Presented.