AN ACT Relating to the local taxation of the sale or distribution of motor vehicle fuels; amending RCW 82.36.440 and 82.38.280; and adding a new chapter to Title 82 RCW.

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

NEW SECTION. Sec. 1. The legislative authority of any county may, by resolution for the purposes authorized in this chapter, fix and impose an excise tax on the sale or distribution of motor vehicle fuel and special fuel within the county. The rate of such tax shall be in increments of one-tenth of a cent per gallon and shall not exceed ... cents per gallon. Any person paying such excise tax who, in turn, sells or distributes such fuel to another, whether or not for use, shall include the tax as part of the selling price of the fuel. Any person thereafter paying a price for such fuel that includes an increment for the tax imposed under this section, and who subsequently resells the fuel, shall include the increment so paid as part of the selling price of the fuel.

The tax imposed in this section shall be collected and paid to the county but once in respect to any motor vehicle fuel or special fuel. This tax shall be in addition to any other tax authorized or imposed by law.

NEW SECTION. Sec. 2. The definitions set forth in this section shall apply throughout this chapter unless the context clearly requires otherwise.

(1) "Motor vehicle fuel" has the meaning given in RCW 82.36.010(2).

(2) "Special fuel" has the meaning given in RCW 82.38.020(5).

(3) "Motor vehicle" has the meaning given in RCW 82.36.010(1).

NEW SECTION. Sec. 3. The entire proceeds of the tax imposed under this chapter, less refunds and less amounts deducted by the department of licensing for administration and collection expenses, shall be used solely for the purposes of the 1st avenue south bridge in Seattle, light rail transit, and emergency road and bridge projects.

NEW SECTION. Sec. 4. Prior to the effective date of the resolution imposing the tax under this chapter, the county shall contract with the department of licensing for the administration and collection of the tax, including refunds, if any. The department shall deduct a percentage amount, as provided by contract, for administration and collection expenses incurred by it. The remainder of any portion of the tax authorized by this chapter which is collected by the department of licensing shall be deposited by the department in a special fund under the custody of the state treasurer to be known as the local motor vehicle fuel tax revolving fund. Each month the state treasurer shall distribute to the counties the amount of tax collected on behalf of each county, less refunds. All appropriate administrative provisions in chapters 82.36 and 82.38 RCW shall, insofar as they are applicable to state motor vehicle fuel and special fuel taxes, be applicable to the tax imposed pursuant to this chapter.

Sec. 5. Section 82.36.440, chapter 15, Laws of 1961 as amended by section 5, chapter 181, Laws of 1979 ex. sess. and RCW 82.36.440 are each amended to read as follows:

The tax herein levied is in lieu of any excise, privilege, or occupational tax upon the business of manufacturing, selling, or distributing motor vehicle fuel, and no city, town, county, township or other subdivision or municipal corporation of the state shall levy or collect any excise tax upon or measured by the sale, receipt, distribution, or use of motor vehicle fuel: PROVIDED, That nothing in this section or chapter 82.36 RCW shall be construed to prohibit in any manner the imposition of a ((~~city~~)) tax upon motor vehicle fuel pursuant to ((~~RCW 82.39.010~~)) section 1 of this 1989 act.

Sec. 6. Section 29, chapter 175, Laws of 1971 ex. sess. as amended by section 6, chapter 181, Laws of 1979 ex. sess. and RCW 82.38.280 are each amended to read as follows:

The tax herein levied is in lieu of any excise, privilege, or occupational tax upon the business of manufacturing, selling, or distributing special fuel, and no city, town, county, township or other subdivision or municipal corporation of the state shall levy or collect any excise tax upon or measured by the sale, receipt, distribution, or use of special fuel: PROVIDED, That nothing in this section or chapter 82.38 RCW shall be construed to prohibit in any manner the imposition of a ((~~city~~)) tax upon special fuel pursuant to ((~~RCW 82.39.010~~)) section 1 of this 1989 act.

NEW SECTION. Sec. 7. Sections 1 through 4 of this act shall constitute a new chapter in Title 82 RCW.