AN ACT Relating to aircraft fuel taxes; amending RCW 82.42.040, 82.42.060, 82.42.070, and 82.42.110; adding new sections to chapter 82.42 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.42 RCW to read as follows:

(1) In addition to the tax imposed under RCW 82.42.020, there is hereby levied, and there shall be collected by every distributor of aircraft fuel, an excise tax at the rate of ten cents on each gallon of aircraft fuel sold, delivered, or used in this state if the fuel is used for: (a) The operation of aircraft when the use is by any air carrier or supplemental air carrier operating under a certificate of public convenience and necessity or permit under the provisions of the Federal Aviation Act of 1958, Public Law 85-726, as amended; or (b) the operation of aircraft in the operations of a local service commuter.

(2) The tax imposed under this section does not apply in respect to aircraft fuel used for: (a) The operation of aircraft for testing or experimental purposes; (b) the operation of aircraft when the operation is for the training of crews in Washington state for purchasers of aircraft who are certified air carriers; or (c) the operation of aircraft for personal, noncommercial use.

NEW SECTION. Sec. 2. A new section is added to chapter 82.42 RCW to read as follows:

(1) The housing, human services, health, and economic development account is hereby created in the state treasury. All receipts from the tax imposed under section 1 of this act shall be deposited in the account. Except for unanticipated receipts under chapter 43.79 RCW, moneys in the account may be spent only after appropriation by statute. Expenditures from the account may be used only for human services, health care, housing, community facilities, economic opportunity programs, job training and job retention programs, child care, and related services.

(2) The legislature intends that revenue deposited in the account be appropriated as follows:

(a) Twenty-five percent for deposit in the state housing trust fund; and

(b) The remainder for distribution to cities, towns, and counties for human services, health care, housing, community facilities, economic opportunity programs, job training and job retention programs, child care, and related services.

(3) The department of community development shall devise a plan for distributing moneys under this section beginning with the second calendar quarter of 1990 and shall submit the plan to the legislature on or before January 1, 1990. In developing the distribution plan, the department shall consider: The number of persons living in poverty according to an appropriate measurement of poverty; geographical distribution and needs of people who are living in poverty; the statutory authority of counties and cities to deal with a wide range of human services programs; development of community-based plans to respond to human services and related programs; and the fiscal capacity of counties, cities, and towns to effectively deal with human services and related programs.

(4) Moneys distributed under this section shall be used in addition to, and not as a substitute for, moneys currently used by a city or county for the purposes specified in subsection (2)(b) of this section.

Sec. 3. Section 4, chapter 10, Laws of 1967 ex. sess. as last amended by section 5, chapter 25, Laws of 1982 1st ex. sess. and RCW 82.42.040 are each amended to read as follows:

The director shall by rule and regulation adopted as provided in chapter ((~~34.04~~)) 34.05 RCW (Administrative Procedure Act) set up the necessary administrative procedure for collection by the department of the aircraft fuel excise tax as provided for in ((~~RCW 82.42.020~~)) this chapter, placing the responsibility of collection of said tax upon every distributor of aircraft fuel within the state; he may require the licensing of every distributor of aircraft fuel and shall require such a corporate surety bond or security of any distributor or person not otherwise bonded under provisions of chapter 82.36 RCW as is provided for distributors of motor vehicle fuel under RCW 82.36.060; he shall provide such forms and may require such reports or statements as in his determination shall be necessary for the proper administration of this chapter. The director may require such records to be kept, and for such periods of time, as deemed necessary for the administration of this chapter, which records shall be available at all times for the director or his representative who may require a statement under oath as to the contents thereof.

Sec. 4. Section 6, chapter 10, Laws of 1967 ex. sess. as last amended by section 5, chapter 254, Laws of 1969 ex. sess. and RCW 82.42.060 are each amended to read as follows:

The amount of aircraft fuel excise tax imposed under ((~~RCW 82.42.020~~)) this chapter for each month shall be paid to the director on or before the twenty-fifth day of the month thereafter, and if not paid prior thereto, shall become delinquent at the close of business on that day, and a penalty of ten percent of such excise tax must be added thereto for delinquency. Any aircraft fuel tax, penalties, and interest payable under the provisions of this chapter shall bear interest at the rate of one percent per month, or fraction thereof, from the first day of the calendar month after the close of the monthly period for which the amount or any portion thereof should have been paid until the date of payment. The provisions of RCW 82.36.110 relating to a lien for taxes, interests or penalties due, shall be applicable to the collection of the aircraft fuel excise tax provided in ((~~RCW 82.42.020~~)) this chapter, and the provisions of RCW 82.36.120, 82.36.130 and 82.36.140 shall apply to any distributor of aircraft fuel with respect to the aircraft fuel excise tax imposed under ((~~RCW 82.42.020~~)) this chapter.

Sec. 5. Section 7, chapter 10, Laws of 1967 ex. sess. as last amended by section 6, chapter 25, Laws of 1982 1st ex. sess. and RCW 82.42.070 are each amended to read as follows:

The provisions of ((~~RCW 82.42.020~~)) this chapter requiring the payment of an aircraft fuel excise tax on aircraft fuel shall not apply to aircraft fuel imported into the state in interstate or foreign commerce and intended to be sold while in interstate or foreign commerce, nor to aircraft fuel exported from this state, nor to aircraft fuel sold to the United States government or any agency thereof: PROVIDED, That exemptions granted under this section shall be null and void unless full conformance is made with the requisite administrative procedure set forth for procuring such exemptions under rules and regulations of the director promulgated under the provisions of this chapter. Except as provided in RCW 82.42.030, nothing in this chapter shall be construed to exempt the state or any political subdivision thereof from the payment of the aircraft excise fuel tax provided in ((~~RCW 82.42.020~~)) this chapter. When setting up rules and regulations as provided for in RCW 82.42.040, the director shall provide for such refund procedure as deemed necessary to carry out the provisions of this chapter, and full compliance with such provisions shall be essential before receipt of any refund thereunder.

Sec. 6. Section 5, chapter 156, Laws of 1971 ex. sess. as amended by section 9, chapter 25, Laws of 1982 1st ex. sess. and RCW 82.42.110 are each amended to read as follows:

Every person other than a distributor who acquires any aircraft fuel within this state upon which payment of tax is required under the provisions of this chapter, or imports such aircraft fuel into this state and sells, delivers, or in any manner uses it in this state shall, if the tax has not been paid, be subject to the provisions of RCW 82.42.040 provided for distributors and shall pay a tax at the rate computed under ((~~RCW 82.42.025~~)) this chapter for each gallon thereof so sold, delivered, or used in the manner provided for distributors. The proceeds of the tax imposed by this section shall be distributed in the manner provided for the distribution of the aircraft fuel tax in RCW 82.42.090. For failure to comply with the terms of this chapter, such person shall be subject to the same penalties imposed upon distributors. The director shall pursue against such persons the same procedure and remedies for audits, adjustments, collection, and enforcement of this chapter as is provided with respect to distributors. Nothing herein shall be construed as classifying such persons as distributors.

NEW SECTION. Sec. 7. 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 July 1, 1989.