FINAL BILL REPORT

                  HB 1477

                         C 141 L 93

                     Synopsis as Enacted

Brief Description:  Creating a fuel tax exemption.

By Representatives Wood, Schmidt, R. Fisher, Mielke, Brumsickle, Ludwig, Casada and Shin.

House Committee on Transportation

Senate Committee on Transportation

Background:  Motor vehicle fuel used for nonhighway purposes is exempt from motor fuel taxes.  Users may request a fuel tax refund from the Department of Licensing.

One of the purposes eligible for a fuel tax refund is the use of power takeoff (PTO) units which include pumps and other equipment fueled from a vehicle's fuel tank.  Accurately determining fuel used by the PTO units may not be practical or possible.

Under current law the amount of exempt fuel may be determined through the use of a metering device or a separate fuel tank, or by using statutory formulas that specifically address certain PTO uses:  the pumping of fuel, heating oils or milk; cement mixer trucks; and garbage truck load compactors.  The use of onboard computers in lieu of a metering device is not authorized.

Some users of PTO units are not able to collect a fuel tax refund because they are unable to determine the amount of fuel eligible for refund using the measuring options available in law.

Summary:  For purposes of providing fuel tax refunds, the Department of Licensing is authorized to establish by rule formulas for determining power takeoff unit fuel use when direct measurement of the fuel used is not feasible.  Formulas may apply to vehicles using motor vehicle fuel or special fuel.  The department is also authorized to adopt rules to permit the use of onboard computers to compile records for determining power takeoff unit fuel use.  Formulas in statute addressing certain power takeoff uses are not changed.

Votes on Final Passage:

House  98 0

Senate 42 2

Effective:  July 25, 1993