AN ACT Relating to revenue and taxation; adding a new chapter to Title 82 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes that massive oil spills and other forms of oil pollution present danger to the fragile marine environments of the state of Washington requiring a stable source of funds for the abatement and control of all forms of pollution which occur within the boundaries of Washington state. It is the intent and purpose of this chapter to levy a tax on oil in this state and to collect the tax from the person who first stores such oil within this state. It is also the intent and purpose of this chapter to insure that revenue collected will be deposited into the coastal protection fund where it will be used for oil pollution prevention, control and abatement, state and local government emergency response efforts, bird rescue and revival, and habitat enhancement projects necessitated by spills of oil or other hazardous substances.

NEW SECTION. Sec. 2. The definitions set forth in this section shall apply throughout this chapter.

(1) "Barrel" means forty-two United States gallons.

(2) "Person" means any individual, firm, partnership, company, association, joint venture, or corporation.

(3) "State" means the state of Washington.

(4) "Oil" or "oils" means oil including gasoline, crude oil, fuel oil, diesel oil, heating or stove oil, lubricating oil, oily sludge, or similar bulk petroleum products.

(5) "Waste oil" means the oil-water mixture resulting from hull and tank cleaning.

(6) "Oil terminal" means any land based structure, or group of structures, with a capacity of one thousand barrels or more that is operated for the express purpose of using, processing, storing, transferring, or distributing oil. Terminals owned and operated by the federal government and distribution lines of interstate oil terminal pipelines shall not be included in this definition.

(7) "Processing" or "processed" means the refining, bottling, canning, cutting of oil, or the manufacture of other substances such as asphalt from oil.

NEW SECTION. Sec. 3. (1) There is levied and there shall be collected from every person a tax for the privilege of storing oil at oil terminals in this state. The amount of the tax shall be one cent per barrel on oil first delivered to any oil terminal for use, processing, storing, transferring, or distributing by or from said terminal. Such tax shall be applied only to the first delivery of oil within this state from any source, and shall not be levied against the first delivery or processing of waste oil, or upon oil which is stored in the state for less than forty-eight hours and is not in the course of transportation to another state or foreign country.

(2) The tax imposed in this section shall not be imposed after July 1, 1992, at which time the legislature will review the necessity of collecting said tax.

NEW SECTION. Sec. 4. The tax imposed by section 3 of this act shall be due and payable by any person storing oil at any terminal within this state. The department of revenue is authorized to establish procedures for the collection of such tax, and to assure that the tax is calculated only on the basis of first delivery of oil within the state. The provisions of chapter 82.32 RCW which are consistent with this chapter shall have full force and effect with regard to the taxes imposed under this chapter.

NEW SECTION. Sec. 5. Any orders or decisions of the director of the department of revenue issued pursuant to the provisions of this chapter shall be subject to review by the board of tax appeals in accordance with the provisions of chapter 82.03 RCW.

NEW SECTION. Sec. 6. The tax imposed by section 3 of this act shall be deposited in the coastal protection fund. This account shall be used to fund baseline studies and damage assessment studies, the recovery of funds expended by state and local agencies in the control and abatement of oil spills, the purchase and rental of cleanup equipment, and for other such activities associated with the clean up of oil spills.

NEW SECTION. Sec. 7. All revenues collected under this chapter shall be transmitted to the state treasurer and shall be credited to the coastal protection fund.

NEW SECTION. Sec. 8. Sections 1 through 7 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 9. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.