2090‑S AMH SCHK DOYL 2

SHB 2090 ‑ H AMDS 865 Adopted 4-13-95

By Representative K. Schmidt

     On page 2, beginning on line 27, strike all of section 3.

     On page 4, line 30 after "46.68.090(1)(1)." insert the following:

     "The tax exemption refund will be based upon the difference between the amount of tax collected on the original taxable sale invoice and the rebilled taxable sale invoice that reflects the alcohol that is exempt from the motor fuel tax."

     On page 4, line 31, strike all of subsection 4.

     On page 4, line 33, strike all of subsection 5.

     On page 5, line 7, strike "March 28, 1995" and insert "immediately"

     On page 5, after line 8, insert the following:

"Sec. 4.  1994 c 225 s 3 (uncodified) is amended to read as follows:

     (1)  If a court enters a final order invalidating or remanding section 1 of this act on the grounds that it does not comply with section 13, chapter 2, Laws of 1994, it is the intent of the legislature that ((this measure)) Laws of 1994, chapter 225 as amended  be submitted to the people for their adoption, ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.

     (2)  If a court remands this act for a vote of the people, the ballot title shall be substantially as follows:  "Shall the alcohol fuel tax exemption given to fuel distributors be eliminated?"

(3)  If the voters approve the repeal as provided in section 1 of this act, the repeal shall be made retroactive to May 1, 1994."

     On page 5, after line 8, insert the following:

"NEW SECTION. Sec. 6.  No refunds authorized under this act shall be provided until 1994 c 225 is rejected by the people at the next November general election.  Any funds received as taxes paid subject to refunds authorized in section 3 of this act shall be deposited in the Gasohol Exemption Holding Account.  The department of licensing is authorized to issue refunds after 1994 c 225 has been rejected by the people at the next November general election.

"NEW SECTION. Sec. 7.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstance is not affected."

EFFECT:  The methodology to be used to calculate the tax refund is specified.

     The language that the state shall not pay refunds for taxes      collected up to the time of the court's injunction is     removed solely to avoid the appearance of interfering with a      judicial function (i.e., making a legal determination about the liability of the state for refunding taxes validly      collected).

     ESHB 2326, the original repeal of the gasohol tax exemption, is amended to provide specific notice to gasohol   distributors and the voters that the voters' decision on   closing the tax loophole will be effective retroactively to   May 1, 1994, when the legislature first repealed the exemption.   

     The act is made effective immediately, except for section 2.