AN
ACT Relating to special fuel and motor vehicle fuel taxes; amending RCW
35A.82.010, 82.04.4285, 82.36.020, 82.36.032, 82.36.045, 82.36.047, 82.36.060,
82.36.070, 82.36.080, 82.36.090, 82.36.100, 82.36.120, 82.36.130, 82.36.140,
82.36.150, 82.36.160, 82.36.170, 82.36.180, 82.36.190, 82.36.200, 82.36.210,
82.36.230, 82.36.280, 82.36.300, 82.36.310, 82.36.330, 82.36.335, 82.36.350, 82.36.370,
82.36.375, 82.36.390, 82.36.400, 82.38.020, 82.38.030, 82.38.070, 82.38.080,
82.38.090, 82.38.100, 82.38.110, 82.38.120, 82.38.130, 82.38.150, 82.38.160,
82.38.170, 82.38.180, 82.38.190, 82.38.210, 82.38.220, 82.38.230, 82.38.235,
82.38.240, 82.38.260, 43.05.110, 82.47.010, and 82.80.010; reenacting and
amending RCW 82.08.0255, 82.12.0256, 82.36.010, and 82.38.140; adding new
sections to chapter 82.36 RCW; adding new sections to chapter 82.38 RCW;
creating new sections; repealing RCW 82.36.030, 82.36.038, 82.36.220,
82.38.040, 82.38.082, and 82.38.086; prescribing penalties; and providing an
effective date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds and declares that:
(1)
The health, safety, and welfare of the people of the state of Washington are
dependent on the state's ability to properly collect the taxes enacted by the
legislature;
(2)
The current system for collecting special fuel taxes and motor vehicle fuel tax
has allowed many parties to fraudulently evade paying the special fuel taxes
and motor vehicle fuel tax due the state; and
(3)
By changing the point of collection of the special fuel taxes and motor vehicle
fuel tax from distributors to suppliers, the department of licensing will have
fewer parties to collect tax from and enforcement will be enhanced, thus
leading to greater revenues for the state.
Sec.
2. RCW
35A.82.010 and 1995 c 274 s 4 are each amended to read as follows:
A
code city shall collect, receive and share in the distribution of state
collected and distributed excise taxes to the same extent and manner as general
laws relating thereto apply to any class of city or town including, but not
limited to, funds distributed to cities under RCW 82.36.020 relating to motor
vehicle fuel tax, RCW 82.38.290 relating to use fuel tax, and RCW 82.36.275 and
82.38.080(((9))) (3).
Sec.
3. RCW
82.04.4285 and 1980 c 37 s 6 are each amended to read as follows:
In
computing tax there may be deducted from the measure of tax so much of the sale
price of motor vehicle fuel as constitutes the amount of tax imposed by the
state under chapters 82.36 and 82.38 RCW or the United States government,
under 26 U.S.C., Subtitle D, chapters 31 and 32, upon the sale thereof.
Sec.
4. RCW
82.08.0255 and 1983 1st ex.s. c 35 s 2 and 1983 c 108 s 1 are each reenacted
and amended to read as follows:
(1)
The tax levied by RCW 82.08.020 shall not apply to sales of:
(a)
Motor vehicle fuel used in aircraft by the manufacturer thereof for research,
development, and testing purposes; and
(b)
Motor vehicle and special fuel if:
(i)
The fuel is purchased for the purpose of public transportation and the
purchaser is entitled to a refund or an exemption under RCW 82.36.275 or
82.38.080(((9))) (3); or
(ii)
The fuel is purchased by a private, nonprofit transportation provider certified
under chapter 81.66 RCW and the purchaser is entitled to a refund or an
exemption under RCW 82.36.285 or 82.38.080(((8))) (1)(h); or
(iii)
The fuel is taxable under chapter 82.36 or 82.38 RCW.
(2)
Any person who has paid the tax imposed by RCW 82.08.020 on the sale of special
fuel delivered in this state shall be entitled to a credit or refund of such
tax with respect to fuel subsequently established to have been actually
transported and used outside this state by persons engaged in interstate
commerce. The tax shall be claimed as a credit or refunded through the tax
reports required under RCW 82.38.150.
Sec.
5. RCW
82.12.0256 and 1983 1st ex.s. c 35 s 3 and 1983 c 108 s 2 are each reenacted
and amended to read as follows:
The
provisions of this chapter shall not apply in respect to the use of:
(1)
Motor vehicle fuel used in aircraft by the manufacturer thereof for research,
development, and testing purposes; and
(2)
Special fuel purchased in this state upon which a refund is obtained as
provided in RCW 82.38.180(2); and
(3)
Motor vehicle and special fuel if:
(a)
The fuel is used for the purpose of public transportation and the purchaser is
entitled to a refund or an exemption under RCW 82.36.275 or 82.38.080(((9)))
(3); or
(b)
The fuel is purchased by a private, nonprofit transportation provider certified
under chapter 81.66 RCW and the purchaser is entitled to a refund or an
exemption under RCW 82.36.285 or 82.38.080(((8))) (1)(h); or
(c)
The fuel is taxable under chapter 82.36 or 82.38 RCW: PROVIDED, That the use
of motor vehicle and special fuel upon which a refund of the applicable fuel
tax is obtained shall not be exempt under this subsection (3)(c), and the
director of licensing shall deduct from the amount of such tax to be refunded
the amount of tax due under this chapter and remit the same each month to the
department of revenue.
Sec.
6. RCW
82.36.010 and 1995 c 287 s 1 and 1995 c 274 s 20 are each reenacted and amended
to read as follows:
((For
the purposes of this chapter:
(1)
"Motor vehicle" means every vehicle that is in itself a
self-propelled unit, equipped with solid rubber, hollow-cushion rubber, or
pneumatic rubber tires and capable of being moved or operated upon a public
highway, except motor vehicles used as motive power for or in conjunction with
farm implements and machines or implements of husbandry;
(2)
"Motor vehicle fuel" means gasoline or any other inflammable gas or
liquid, by whatsoever name such gasoline, gas, or liquid may be known or sold,
the chief use of which is as fuel for the propulsion of motor vehicles or
motorboats;
(3)
"Distributor" means every person who refines, manufactures, produces,
or compounds motor vehicle fuel and sells, distributes, or in any manner uses
it in this state; also every person engaged in business as a bona fide
wholesale merchant dealing in motor vehicle fuel who either acquires it within
the state from any person refining it within or importing it into the state, on
which the tax has not been paid, or imports it into this state and sells,
distributes, or in any manner uses it in this state; also every person who
acquires motor vehicle fuel, on which the tax has not been paid, and exports it
by commercial motor vehicle to a location outside the state. For the purposes
of liability for a county fuel tax, "distributor" has that meaning
defined in the county ordinance imposing the tax. For the purposes of this
subsection, "commercial motor vehicle" means any motor vehicle used,
designed, or maintained for transportation of persons or property and: (a)
Having two axles and a gross vehicle weight or registered gross vehicle weight
exceeding twenty-six thousand pounds; or (b) having three or more axles
regardless of weight; or (c) is used in combination, when the weight of such
combination exceeds twenty-six thousand pounds gross vehicle weight.
"Commercial motor vehicle" does not include recreational vehicles;
(4)
"Service station" means a place operated for the purpose of
delivering motor vehicle fuel into the fuel tanks of motor vehicles;
(5)
"Department" means the department of licensing;
(6)
"Director" means the director of licensing;
(7)
"Dealer" means any person engaged in the retail sale of liquid motor
vehicle fuels;
(8)
"Person" means every natural person, firm, partnership, association,
or private or public corporation;
(9)
"Highway" means every way or place open to the use of the public, as
a matter of right, for purposes of vehicular travel;
(10)
"Broker" means every person, other than a distributor, engaged in
business as a broker, jobber, or wholesale merchant dealing in motor vehicle
fuel or other petroleum products used or usable in propelling motor vehicles,
or in other petroleum products which may be used in blending, compounding, or
manufacturing of motor vehicle fuel;
(11)
"Producer" means every person, other than a distributor, engaged in
the business of producing motor vehicle fuel or other petroleum products used in,
or which may be used in, the blending, compounding, or manufacturing of motor
vehicle fuel;
(12)
"Distribution" means all withdrawals of motor vehicle fuel for
delivery to others, to retail service stations, or to unlicensed bulk storage
plants;
(13)
"Bulk storage plant" means, pursuant to the licensing provisions of
RCW 82.36.070, any plant, under the control of the distributor, used for the
storage of motor vehicle fuel to which no retail outlets are directly connected
by pipe lines;
(14)
"Marine fuel dealer" means any person engaged in the retail sale of
liquid motor vehicle fuel whose place of business and or sale outlet is located
upon a navigable waterway;
(15)
"Alcohol" means alcohol that is produced from renewable resources;
(16)
"Electronic funds transfer" means any transfer of funds, other than a
transaction originated by check, draft, or similar paper instrument, which is
initiated through an electronic terminal, telephonic instrument, or computer or
magnetic tape so as to order, instruct, or authorize a financial institution to
debit or credit an account;
(17)
"Evasion" or "evade" means to diminish or avoid the
computation, assessment, or payment of authorized taxes or fees through:
(a)
A knowing: False statement, misrepresentation of fact, or other act of
deception; or
(b)
An intentional: Omission, failure to file a return or report, or other act of
deception.)) The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1)
"Blended fuel" means a mixture of motor vehicle fuel and another
liquid, other than a de minimus amount of the liquid, that can be used as a
fuel to propel a motor vehicle.
(2)
"Bond" means a bond duly executed with a corporate surety qualified
under chapter 48.28 RCW, which bond is payable to the state of Washington
conditioned upon faithful performance of all requirements of this chapter,
including the payment of all taxes, penalties, and other obligations arising
out of this chapter.
(3)
"Bulk transfer" means a transfer of motor vehicle fuel by pipeline or
vessel.
(4)
"Bulk transfer-terminal system" means the motor vehicle fuel
distribution system consisting of refineries, pipelines, vessels, and
terminals. Motor vehicle fuel in a refinery, pipeline, vessel, or terminal is
in the bulk transfer-terminal system. Motor vehicle fuel in the fuel tank of
an engine, motor vehicle, or in a railcar, trailer, truck, or other equipment
suitable for ground transportation is not in the bulk transfer-terminal system.
(5)
"Dealer" means a person engaged in the retail sale of motor vehicle
fuel.
(6)
"Department" means the department of licensing.
(7)
"Director" means the director of licensing.
(8)
"Evasion" or "evade" means to diminish or avoid the
computation, assessment, or payment of authorized taxes or fees through:
(a)
A knowing: False statement; misrepresentation of fact; or other act of
deception; or
(b)
An intentional: Omission; failure to file a return or report; or other act of
deception.
(9)
"Export" means to obtain motor vehicle fuel in this state for sales
or distribution outside the state.
(10)
"Highway" means every way or place open to the use of the public, as
a matter of right, for the purpose of vehicular travel.
(11)
"Import" means to bring motor vehicle fuel into this state by a means
of conveyance other than the fuel supply tank of a motor vehicle.
(12)
"Licensee" means a person holding a license issued under this
chapter.
(13)
"Marine fuel dealer" means a person engaged in the retail sale of
motor vehicle fuel whose place of business and/or sale outlet is located upon a
navigable waterway.
(14)
"Motor vehicle fuel blender" means a person who produces blended
motor fuel outside the bulk transfer-terminal system.
(15)
"Motor vehicle fuel distributor" means a person who acquires motor
vehicle fuel from a supplier, distributor, or licensee for subsequent sale and
distribution.
(16)
"Motor vehicle fuel exporter" means a person who purchases motor
vehicle fuel in this state and directly exports the fuel by a means other than
the bulk transfer-terminal system to a destination outside of the state. If
the exporter of record is acting as an agent, the person for whom the agent is
acting is the exporter. If there is no exporter of record, the owner of the
motor fuel at the time of exportation is the exporter.
(17)
"Motor vehicle fuel importer" means a person who imports motor
vehicle fuel into the state by a means other than the bulk transfer-terminal
system. If the importer of record is acting as an agent, the person for whom
the agent is acting is the importer. If there is no importer of record, the
owner of the motor vehicle fuel at the time of importation is the importer.
(18)
"Motor vehicle fuel supplier" means a person who owns and stores
motor vehicle fuel in a terminal facility or who refines and stores motor
vehicle fuel at a refinery.
(19)
"Motor vehicle" means a self-propelled vehicle designed for operation
upon land utilizing motor vehicle fuel as the means of propulsion.
(20)
"Motor vehicle fuel" means gasoline and any other inflammable gas or
liquid, by whatsoever name the gasoline, gas, or liquid may be known or sold, the
chief use of which is as fuel for the propulsion of motor vehicles or
motorboats.
(21)
"Person" means a natural person, fiduciary, association, or
corporation. The term "person" as applied to an association means
and includes the partners or members thereof, and as applied to corporations,
the officers thereof.
(22)
"Position holder" means a person who holds the inventory position in
motor vehicle fuel, as reflected by the records of the terminal operator. A
person holds the inventory position in motor vehicle fuel if the person has a
contractual agreement with the terminal for the use of storage facilities and
terminating services at a terminal with respect to motor vehicle fuel.
"Position holder" includes a terminal operator that owns motor
vehicle fuel in their terminal.
(23)
"Rack" means a mechanism for delivering motor vehicle fuel from a
refinery or terminal into a truck, trailer, railcar, or other means of nonbulk
transfer.
(24)
"Refiner" means a person who owns, operates, or otherwise controls a
refinery.
(25)
"Removal" means a physical transfer of motor vehicle fuel other than by
evaporation, loss, or destruction.
(26)
"Terminal" means a motor vehicle fuel storage and distribution
facility that has been assigned a terminal control number by the internal
revenue service, is supplied by pipeline or vessel, and from which reportable
motor vehicle fuel is removed at a rack.
(27)
"Terminal operator" means a person who owns, operates, or otherwise
controls a terminal.
(28)
"Two-party exchange" or "buy-sell agreement" means a
transaction in which taxable motor vehicle fuel is transferred from one
licensed supplier to another licensed supplier under an exchange or buy-sell
agreement whereby the supplier that is the position holder agrees to deliver
taxable motor vehicle fuel to the other supplier or the other supplier's
customer at the rack of the terminal at which the delivering supplier is the
position holder.
Sec.
7. RCW
82.36.020 and 1983 1st ex.s. c 49 s 26 are each amended to read as follows:
((Every
distributor shall pay, in addition to any other taxes provided by law, an
excise tax to the director at a rate computed in the manner provided in RCW
82.36.025 for each gallon of motor vehicle fuel sold, distributed, or used by
him in the state as well as on each gallon upon which he has assumed liability
for payment of the tax under the provisions of RCW 82.36.100: PROVIDED, That
under such regulations as the director may prescribe sales or distribution of
motor vehicle fuel may be made by one licensed distributor to another licensed
distributor free of the tax. In the computation of the tax, one-quarter of one
percent of the net gallonage otherwise taxable shall be deducted by the
distributor before computing the tax due, on account of the losses sustained
through handling. The tax imposed hereunder shall be in addition to any other
tax required by law, and shall not be imposed under circumstances in which the
tax is prohibited by the Constitution or laws of the United States. The tax
herein imposed shall be collected and paid to the state but once in respect to
any motor vehicle fuel. An invoice shall be rendered by a distributor to a
purchaser for each distribution of motor vehicle fuel.))
(1)
There is hereby levied and imposed upon motor vehicle fuel users a tax at the
rate computed in the manner provided in RCW 82.36.025 on each gallon of motor
vehicle fuel.
(2)
The tax imposed by subsection (1) of this section is imposed when any of the
following occurs:
(a)
Motor vehicle fuel is removed in this state from a terminal if the motor
vehicle fuel is removed at the rack unless the removal is to a licensed
exporter for direct delivery to a destination outside of the state;
(b)
Motor vehicle fuel is removed in this state from a refinery if either of the
following applies:
(i)
The removal is by bulk transfer and the refiner or the owner of the motor
vehicle fuel immediately before the removal is not a licensee; or
(ii)
The removal is at the refinery rack unless the removal is to a licensed
exporter for direct delivery to a destination outside of the state;
(c)
Motor vehicle fuel enters into this state for sale, consumption, use, or
storage if either of the following applies:
(i)
The entry is by bulk transfer and the importer is not a licensee; or
(ii)
The entry is not by bulk transfer;
(d)
Motor vehicle fuel is removed in this state to an unlicensed entity unless
there was a prior taxable removal, entry, or sale of the motor vehicle fuel;
(e)
Blended motor vehicle fuel is removed or sold in this state by the blender of
the fuel. The number of gallons of blended motor vehicle fuel subject to the
tax is the difference between the total number of gallons of blended motor
vehicle fuel removed or sold and the number of gallons of previously taxed
motor vehicle fuel used to produce the blended motor vehicle fuel.
(3)
The proceeds of the motor vehicle fuel excise tax collected ((on the net
gallonage after the deduction provided for herein and)) after the
deductions for payments and expenditures as provided in RCW 46.68.090((,))
shall be distributed as provided in RCW 46.68.100.
NEW
SECTION. Sec. 8. (1) A
position holder shall remit tax to the department on motor vehicle fuel removed
from a terminal as provided in RCW 82.36.020(2)(a). On a two-party exchange,
or buy-sell agreement between two suppliers, the receiving exchange partner or
buyer, becomes the position holder, who shall remit the tax.
(2)
A refiner shall remit tax to the department on motor vehicle fuel removed from
a refinery as provided in RCW 82.36.020(2)(b).
(3)
An importer shall remit tax to the department on motor vehicle fuel imported
into this state as provided in RCW 82.36.020(2)(c).
(4)
A blender shall remit tax to the department on the removal or sale of blended
motor vehicle fuel as provided in RCW 82.36.020(2)(e).
NEW
SECTION. Sec. 9. A
terminal operator is jointly and severally liable for remitting the tax imposed
under RCW 82.36.020(1) if, at the time of removal:
(1)
The position holder with respect to the motor vehicle fuel is a person other
than the terminal operator and is not a licensee;
(2)
The terminal operator is not a licensee;
(3)
The position holder has an expired internal revenue service notification
certificate issued under 26 C.F.R. Part 48; or
(4)
The terminal operator had reason to believe that information on the
notification certificate was false.
NEW
SECTION. Sec. 10. Upon
the taxable removal of motor vehicle fuel, the licensee who acquired or removed
the motor vehicle fuel, other than a motor vehicle fuel exporter, shall be
entitled to a deduction from the tax liability on the gallonage of taxable
motor vehicle fuel removed in order to account for handling losses, as
follows: For a motor vehicle fuel supplier acting as a distributor,
one-quarter of one percent; and for all other licensees, thirty one-hundredths
of one percent. For those licensees required to file tax reports, the handling
loss deduction shall be reported on tax reports filed with the department. For
motor vehicle fuel distributors, the handling loss deduction shall be shown on
the invoice provided to the motor vehicle fuel distributor by the seller.
NEW
SECTION. Sec. 11. For
the purpose of determining the amount of liability for the tax imposed under
this chapter, and to periodically update license information, each licensee,
other than a motor vehicle fuel distributor, shall file monthly tax reports
with the department, on a form prescribed by the department.
A
report shall be filed with the department even though no motor vehicle fuel tax
is due for the reporting period. Each tax report shall contain a declaration
by the person making the same, to the effect that the statements contained
therein are true and made under penalties of perjury, which declaration has the
same force and effect as a verification of the report and is in lieu of the
verification. The report shall show information as the department may require
for the proper administration and enforcement of this chapter. Tax reports
shall be filed on or before the twenty-fifth day of the next succeeding
calendar month following the period to which the reports relate. If the final
filing date falls on a Saturday, Sunday, or legal holiday the next secular or
business day shall be the final filing date.
The
department, if it deems it necessary in order to ensure payment of the tax
imposed under this chapter, or to facilitate the administration of this
chapter, may require the filing of reports and tax remittances at shorter
intervals than one month.
NEW
SECTION. Sec. 12. (1)
The tax imposed by this chapter shall be computed by multiplying the tax rate
per gallon provided in this chapter by the number of gallons of motor vehicle
fuel subject to the motor vehicle fuel tax.
(2)
Except as provided in subsection (3) of this section, tax reports shall be
accompanied by a remittance payable to the state treasurer covering the tax
amount determined to be due for the reporting period.
(3)
If the tax is paid by electronic funds transfer, the tax shall be paid on or
before the tenth calendar day of the month that is the second month immediately
following the reporting period. When the reporting period is May, the tax
shall be paid on the last business day of June.
(4)
The tax shall be paid by electronic funds transfer whenever the amount due is
fifty thousand dollars or more.
(5)
A motor vehicle fuel distributor shall remit tax on motor vehicle fuel
purchased from a motor vehicle fuel supplier, and due to the state for that
reporting period, to the motor vehicle fuel supplier.
(6)
At the election of the distributor, the payment of the motor vehicle fuel tax
owed on motor vehicle fuel purchased from a supplier shall be remitted to the
supplier on terms agreed upon between the distributor and supplier or no later
than two business days before the last business day of the following month.
This election shall be subject to a condition that the distributor's
remittances of all amounts of motor vehicle fuel tax due to the supplier shall
be paid by electronic funds transfer. The distributor's election may be
terminated by the supplier if the distributor does not make timely payments to
the supplier as required by this section. This section shall not apply if the
distributor is required by the supplier to pay cash or cash equivalent for
motor vehicle fuel purchases.
Sec.
13. RCW
82.36.032 and 1987 c 174 s 7 are each amended to read as follows:
If
any ((distributor)) licensee files a fraudulent ((monthly
gallonage return)) tax report with intent to evade the tax imposed
by this chapter, there shall be added to the amount of deficiency determined by
the department a penalty equal to twenty-five percent of the deficiency, in
addition to all other penalties prescribed by law.
NEW
SECTION. Sec. 14. A
motor vehicle fuel supplier shall, no later than the twentieth calendar day or
next state business day after the motor vehicle fuel tax is due from a motor
vehicle fuel distributor under this chapter, notify the department of the
failure of a motor vehicle fuel distributor to pay the full amount of the tax
owed.
Upon
notification and submission of satisfactory evidence by a motor vehicle fuel
supplier that a motor vehicle fuel distributor has failed to pay the full
amount of the tax owed, the department may suspend the license of the motor
vehicle fuel distributor.
Upon
the suspension, the department shall immediately notify all motor vehicle fuel
suppliers that the authority of the motor vehicle fuel distributor to purchase
tax-deferred motor vehicle fuel has been suspended and all subsequent purchases
of motor vehicle fuel by the motor vehicle fuel distributor must be tax-paid at
the time of removal.
If,
after notification by the department, a motor vehicle fuel supplier continues
to sell tax-deferred motor vehicle fuel to a motor vehicle fuel distributor
whose license is suspended, the motor vehicle fuel supplier's license is
subject to revocation or suspension under RCW 82.36.190. Furthermore, if
notified of a license suspension, a motor vehicle fuel supplier is liable for
any unpaid motor vehicle fuel tax owed on motor vehicle fuel sold to a
suspended motor vehicle fuel distributor.
NEW SECTION. Sec. 15. A
motor vehicle fuel supplier is entitled to a credit of the tax paid over to the
department on those sales of motor vehicle fuel for which the supplier has
received no consideration from or on behalf of the purchaser. The amount of
the tax credit shall not exceed the amount of tax imposed by this chapter on
such sales. Such credit may be taken on a tax return subsequent to the tax
return on which the tax was paid over to the department. If a credit has been
granted under this section, any amounts collected for application against
accounts on which such a credit is based shall be reported on a subsequent tax
return filed after such collection, and the amount of credit received by the
supplier based upon the collected amount shall be returned to the department.
In the event the credit has not been paid, the amount of the credit requested
by the supplier shall be adjusted by the department to reflect the decrease in
the amount on which the claim is based.
Sec.
16. RCW
82.36.045 and 1996 c 104 s 2 are each amended to read as follows:
(1)
If the department determines that the tax reported by a ((motor vehicle fuel
distributor)) licensee is deficient, the department shall assess the
deficiency on the basis of information available to it, and shall add a penalty
of two percent of the amount of the deficiency.
(2)
If a ((distributor, whether licensed or not licensed)) licensee, or
person acting as such, fails, neglects, or refuses to file a motor vehicle
fuel tax report the department shall, on the basis of information available to
it, determine the tax liability of the ((distributor)) licensee or
person for the period during which no report was filed. The department
shall add the penalty provided in subsection (1) of this section to the tax.
An assessment made by the department under this subsection or subsection (1) of
this section is presumed to be correct. In any case, where the validity of the
assessment is questioned, the burden is on the person who challenges the
assessment to establish by a fair preponderance of evidence that it is
erroneous or excessive, as the case may be.
(3)
If a ((distributor)) licensee or person acting as such files a
false or fraudulent report with intent to evade the tax imposed by this
chapter, the department shall add to the amount of deficiency a penalty equal
to twenty-five percent of the deficiency, in addition to the penalty provided
in subsections (1) and (2) of this section and all other penalties prescribed
by law.
(4)
Motor vehicle fuel tax, penalties, and interest payable under this chapter
bears interest at the rate of one percent per month, or fraction thereof, from
the first day of the calendar month after the amount or any portion of it
should have been paid until the date of payment. If a ((distributor)) licensee
or person acting as such establishes by a fair preponderance of evidence
that the failure to pay the amount of tax due was attributable to reasonable
cause and was not intentional or willful, the department may waive the
penalty. The department may waive the interest when it determines the cost of
processing or collection of the interest exceeds the amount of interest due.
(5)
Except in the case of a fraudulent report, neglect or refusal to make a report,
or failure to pay or to pay the proper amount, the department shall assess the
deficiency under subsection (1) or (2) of this section within five years from
the last day of the succeeding calendar month after the reporting period for
which the amount is proposed to be determined or within five years after the
return is filed, whichever period expires later.
(6)
Except in the case of violations of filing a false or fraudulent report, if the
department deems mitigation of penalties and interest to be reasonable and in
the best interest of carrying out the purpose of this chapter, it may mitigate
such assessments upon whatever terms the department deems proper, giving
consideration to the degree and extent of the lack of records and reporting
errors. The department may ascertain the facts regarding recordkeeping and
payment penalties in lieu of more elaborate proceedings under this chapter.
(7)
A ((distributor)) licensee or person acting as such against whom
an assessment is made under subsection (1) or (2) of this section may petition
for a reassessment within thirty days after service upon the ((distributor))
licensee of notice of the assessment. If the petition is not filed
within the thirty-day period, the amount of the assessment becomes final at the
expiration of that period.
If
a petition for reassessment is filed within the thirty-day period, the
department shall reconsider the assessment and, if the ((distributor)) petitioner
has so requested in its petition, shall grant the ((distributor)) petitioner
an oral hearing and give the ((distributor)) petitioner twenty
days' notice of the time and place of the hearing. The department may continue
the hearing from time to time. The decision of the department upon a petition
for reassessment becomes final thirty days after service of notice upon the ((distributor))
petitioner.
An
assessment made by the department becomes due and payable when it becomes
final. If it is not paid to the department when due and payable, the
department shall add a penalty of ten percent of the amount of the tax.
(8)
In a suit brought to enforce the rights of the state under this chapter, the
assessment showing the amount of taxes, penalties, interest, and cost unpaid to
the state is prima facie evidence of the facts as shown.
(9)
A notice of assessment required by this section must be served personally or by
certified or registered mail. If it is served by mail, service shall be
made by deposit of the notice in the United States mail, postage prepaid,
addressed to the ((distributor)) respondent at the most current
address furnished to the department.
(10)
The tax ((required)) imposed by this chapter, if required
to be collected by the seller, is held in trust by the ((seller)) licensee
until paid to the department, and a ((seller)) licensee who
appropriates or converts the tax collected to his or her own use or to any use
other than the payment of the tax to the extent that the money required to be
collected is not available for payment on the due date as prescribed in this
chapter is guilty of a felony, or gross misdemeanor in accordance with the
theft and anticipatory provisions of Title 9A RCW. A person, partnership,
corporation, or corporate officer who fails to collect the tax imposed by this
section, or who has collected the tax and fails to pay it to the department in
the manner prescribed by this chapter, is personally liable to the state for
the amount of the tax.
Sec.
17. RCW
82.36.047 and 1991 c 339 s 4 are each amended to read as follows:
When
an assessment becomes final in accordance with this chapter, the department may
file with the clerk of any county within the state a warrant in the amount of
the assessment of taxes, penalties, interest, and a filing fee of five
dollars. The clerk of the county in which the warrant is filed shall
immediately designate a superior court cause number for the warrant, and the
clerk shall cause to be entered in the judgment docket under the superior court
cause number assigned to the warrant the name of the ((distributor)) licensee
or person mentioned in the warrant, the amount of the tax, penalties,
interest, and filing fee, and the date when the warrant was filed. The
aggregate amount of the warrant as docketed becomes a lien upon the title to
and interest in all real and personal property of the named person against whom
the warrant is issued, the same as a judgment in a civil case duly docketed in
the office of the clerk. The warrant so docketed is sufficient to support the
issuance of writs of execution and writs of garnishment in favor of the state
in the manner provided by law in the case of a civil judgment, wholly or
partially unsatisfied. The clerk of the court is entitled to a filing fee of
five dollars.
Sec.
18. RCW
82.36.060 and 1996 c 104 s 3 are each amended to read as follows:
((Every
person, before becoming a distributor or continuing in business as a
distributor, shall make)) (1) An application ((to the department))
for a license ((authorizing the applicant to engage in business as a
distributor. Applications for such licenses)) issued under this chapter
shall be made to the department on forms to be furnished by the department and
shall contain such information as the department deems necessary.
(2)
Every application for a ((distributor's)) license must contain the
following information to the extent it applies to the applicant:
(((1)))
(a) Proof as the department may require concerning the applicant's
identity, including but not limited to his or her fingerprints or those of the
officers of a corporation making the application;
(((2)))
(b) The applicant's form and place of organization including proof that
the individual, partnership, or corporation is licensed to do business in this
state;
(((3)))
(c) The qualification and business history of the applicant and any
partner, officer, or director;
(((4)))
(d) The applicant's financial condition or history including a bank reference
and whether the applicant or any partner, officer, or director has ever been
adjudged bankrupt or has an unsatisfied judgment in a federal or state court;
(((5)))
(e) Whether the applicant has been adjudged guilty of a crime that
directly relates to the business for which the license is sought and the time
elapsed since the conviction is less than ten years, or has suffered a judgment
within the preceding five years in a civil action involving fraud,
misrepresentation, or conversion and in the case of a corporation or
partnership, all directors, officers, or partners.
(3)
An applicant for a license as a motor vehicle fuel importer must list on the
application each state, province, or country from which the applicant intends
to import motor vehicle fuel and, if required by the state, province, or
country listed, must be licensed or registered for motor vehicle fuel tax
purposes in that state, province, or country.
(4)
An applicant for a license as a motor vehicle fuel exporter must list on the
application each state, province, or country to which the exporter intends to
export motor vehicle fuel received in this state by means of a transfer outside
of the bulk transfer-terminal system and, if required by the state, province,
or country listed, must be licensed or registered for motor vehicle fuel tax
purposes in that state, province, or country.
(5)
An applicant for a license as a motor vehicle fuel supplier must have a federal
certificate of registry that is issued under the internal revenue code and authorizes
the applicant to enter into federal tax-free transactions on motor vehicle fuel
in the terminal transfer system.
(6)
After receipt of an application for a license, the director may conduct an
investigation to determine whether the facts set forth are true. The director
((may)) shall require a fingerprint record check of the applicant
through the Washington state patrol criminal identification system and the
federal bureau of investigation before issuance of a license. The results of
the background investigation including criminal history information may be
released to authorized department personnel as the director deems necessary.
The department shall charge a license holder or license applicant a fee of
fifty dollars for each background investigation conducted.
An
applicant who makes a false statement of a material fact on the application may
be prosecuted for false swearing as defined by RCW 9A.72.040.
Before
granting any license ((authorizing any person to engage in business as a
distributor)) issued under this chapter, the department shall
require applicant to file with the department, in such form as shall be
prescribed by the department, a corporate surety bond duly executed by the
applicant as principal, payable to the state and conditioned for faithful
performance of all the requirements of this chapter, including the payment of
all taxes, penalties, and other obligations arising out of this chapter. The
total amount of the bond or bonds((, required of any distributor)) shall
be fixed by the department and may be increased or reduced by the department at
any time subject to the limitations herein provided. In fixing the total
amount of the bond or bonds ((required of any distributor)), the
department shall require a bond or bonds equivalent in total amount to twice
the estimated monthly excise tax determined in such manner as the department
may deem proper. If at any time the estimated excise tax to become due during
the succeeding month amounts to more than fifty percent of the established
bond, the department shall require additional bonds or securities to maintain
the marginal ratio herein specified or shall demand excise tax payments to be
made weekly or semimonthly to meet the requirements hereof.
The
total amount of the bond or bonds required of any ((distributor)) licensee
shall never be less than five thousand dollars nor more than ((fifty)) one
hundred thousand dollars.
No
recoveries on any bond or the execution of any new bond shall invalidate any
bond and no revocation of any license shall effect the validity of any bond but
the total recoveries under any one bond shall not exceed the amount of the
bond.
In
lieu of any such bond or bonds in total amount as herein fixed, a ((distributor))
licensee may deposit with the state treasurer, under such terms and
conditions as the department may prescribe, a like amount of lawful money of
the United States or bonds or other obligations of the United States, the
state, or any county of the state, of an actual market value not less than the
amount so fixed by the department.
Any
surety on a bond furnished by a ((distributor)) licensee as
provided herein shall be released and discharged from any and all liability to
the state accruing on such bond after the expiration of thirty days from the
date upon which such surety has lodged with the department a written request to
be released and discharged, but this provision shall not operate to relieve,
release, or discharge the surety from any liability already accrued or which
shall accrue before the expiration of the thirty day period. The department
shall promptly, upon receiving any such request, notify the ((distributor))
licensee who furnished the bond; and unless the ((distributor)) licensee,
on or before the expiration of the thirty day period, files a new bond, or
makes a deposit in accordance with the requirements of this section, the
department shall forthwith cancel the ((distributor's)) license.
Whenever a new bond is furnished by a ((distributor)) licensee,
the department shall cancel ((his or her)) the old bond as soon
as the department and the attorney general are satisfied that all liability
under the old bond has been fully discharged.
The
department may require a ((distributor)) licensee to give a new
or additional surety bond or to deposit additional securities of the character
specified in this section if, in its opinion, the security of the surety bond
theretofore filed by such ((distributor)) licensee, or the market
value of the properties deposited as security by the ((distributor)) licensee,
shall become impaired or inadequate; and upon the failure of the ((distributor))
licensee to give such new or additional surety bond or to deposit
additional securities within thirty days after being requested so to do by the
department, the department shall forthwith cancel his or her license.
Sec.
19. RCW
82.36.070 and 1996 c 104 s 4 are each amended to read as follows:
The
application in proper form having been accepted for filing, the filing fee
paid, and the bond or other security having been accepted and approved, the
department shall issue to the applicant ((a)) the appropriate
license ((to transact business as a distributor in the state)), and such
license shall be valid until canceled or revoked.
The
license so issued by the department shall not be assignable, and shall be valid
only for the ((distributor)) person in whose name issued.
((The
department shall keep and file all applications and bonds with an alphabetical
index thereof, together with a record of all licensed distributors.))
Each
((distributor)) licensee shall be assigned a license number ((upon
qualifying for a license hereunder)), and the department shall issue to
each ((such)) licensee a license certificate which shall be displayed
conspicuously ((by the distributor)) at his or her principal place of
business. The department may refuse to issue or may revoke a motor vehicle
fuel ((distributor)) license, to a person:
(1)
Who formerly held a motor vehicle fuel ((distributor's)) license that,
before the time of filing for application, has been revoked or canceled for
cause;
(2)
Who is a subterfuge for the real party in interest whose license has been
revoked or canceled for cause;
(3)
Who, as an individual licensee or officer, director, owner, or managing
employee of a nonindividual licensee, has had a motor vehicle fuel ((distributor))
license revoked or canceled for cause;
(4)
Who has an unsatisfied debt to the state assessed under either chapter 82.36,
((82.37,)) 82.38, 82.42, or 46.87 RCW;
(5)
Who formerly held as an individual, officer, director, owner, managing employee
of a nonindividual licensee, or subterfuge for a real party in interest, a
license issued by the federal government or a state that allowed a person to
buy or sell untaxed motor vehicle or special fuel, which license, before the
time of filing for application, has been revoked for cause;
(6)
Who pled guilty to or was convicted as an individual, corporate officer,
director, owner, or managing employee in this or any other state or in any
federal jurisdiction of a gross misdemeanor or felony crime directly related to
the business or has been subject to a civil judgment involving fraud, misrepresentation,
conversion, or dishonesty, notwithstanding chapter 9.96A RCW;
(7)
Who misrepresented or concealed a material fact in obtaining a license or in
reinstatement thereof;
(8)
Who violated a statute or administrative rule regulating fuel taxation or
distribution;
(9)
Who failed to cooperate with the department's investigations by:
(a)
Not furnishing papers or documents;
(b)
Not furnishing in writing a full and complete explanation regarding a matter
under investigation by the department; or
(c)
Not responding to subpoenas issued by the department, whether or not the
recipient of the subpoena is the subject of the proceeding;
(10)
Who failed to comply with an order issued by the director; or
(11)
Upon other sufficient cause being shown.
Before
such a refusal or revocation, the department shall grant the applicant a
hearing and shall give the applicant at least twenty days' written notice of
the time and place of the hearing.
For
the purpose of considering an application for a ((distributor's))
license issued under this chapter, the department may inspect, cause an
inspection, investigate, or cause an investigation of the records of this or
any other state or of the federal government to ascertain the veracity of the
information on the application form and the applicant's criminal and licensing
history.
The
department may, in the exercise of reasonable discretion, suspend a motor
vehicle ((distributor)) fuel license at any time before and
pending such a hearing for unpaid taxes or reasonable cause.
Sec.
20. RCW
82.36.080 and 1961 c 15 s 82.36.080 are each amended to read as follows:
(1)
It shall be unlawful for any person to ((be a distributor without first
securing a license from the director)) engage in business in this state
as any of the following unless the person is the holder of an uncanceled
license issued by the department authorizing the person to engage in that
business:
(a)
Motor vehicle fuel supplier;
(b)
Motor vehicle fuel distributor;
(c)
Motor vehicle fuel exporter;
(d)
Motor vehicle fuel importer; or
(e)
Motor vehicle fuel blender.
(2)
A person engaged in more than one activity for which a license is required
must have a separate license classification for each activity, but a motor
vehicle fuel supplier is not required to obtain a separate license
classification for any other activity for which a license is required.
(3)
If any person ((becomes)) acts as a ((distributor)) licensee
without first securing the license required herein the excise tax shall be
immediately due and payable on account of all motor vehicle fuel distributed or
used by ((him)) the person. The director shall proceed forthwith
to determine from the best available sources, the amount of the tax, and ((he))
the director shall immediately assess the tax in the amount found due,
together with a penalty of one hundred percent of the tax, and shall make ((his))
a certificate of such assessment and penalty. In any suit or proceeding
to collect the tax or penalty, or both, such certificate shall be prima facie
evidence that the person therein named is indebted to the state in the amount
of the tax and penalty therein stated. Any tax or penalty so assessed may be
collected in the manner prescribed in this chapter with reference to
delinquency in payment of the tax or by an action at law, which the attorney
general shall commence and prosecute to final determination at the request of
the director. The foregoing remedies of the state shall be cumulative and no
action taken pursuant to this section shall relieve any person from the penal
provisions of this chapter.
Sec.
21. RCW
82.36.090 and 1967 c 153 s 2 are each amended to read as follows:
((Whenever
a distributor)) A licensee who ceases to engage in business ((as
a distributor)) within the state by reason of the discontinuance, sale, or
transfer of ((his)) the business((, he)) shall notify the
director in writing at the time the discontinuance, sale, or transfer takes
effect. Such notice shall give the date of discontinuance, and, in the event
of a sale or transfer of the business, the date thereof and the name and
address of the purchaser or transferee thereof. All taxes, penalties, and
interest under this chapter, not yet due and payable, shall become due and
payable concurrently with such discontinuance, sale, or transfer, and any such
((distributor)) licensee shall make a report and pay all such
taxes, interest, and penalties, and surrender to the director the license
certificate theretofore issued to him or her.
If
an overpayment of tax was made by the ((distributor)) licensee,
prior to the discontinuance or transfer of his or her business, such
overpayment may be refunded to such ((distributor or may be credited to the
transferee of such business if such transferee qualifies as a distributor under
the provisions of this chapter)) licensee.
Sec.
22. RCW
82.36.100 and 1983 1st ex.s. c 49 s 28 are each amended to read as follows:
Every
person other than a ((distributor)) licensee who acquires any
motor vehicle fuel within this state upon which payment of tax is required
under the provisions of this chapter, or imports such motor vehicle fuel into
this state and sells, distributes, or in any manner uses it in this state
shall, if the tax has not been paid, apply for a license to carry on such
activities, ((file bond, make reports,)) comply with all ((regulations))
the ((director may prescribe in respect thereto)) provisions of this
chapter, and pay an excise tax at the rate computed in the manner provided
in RCW 82.36.025 for each gallon thereof so sold, distributed, or used during
the fiscal year for which such rate is applicable ((in the manner provided
for distributors, and the director shall issue a license to such person in the
manner provided for issuance of licenses to distributors)). The proceeds
of the tax imposed by this section shall be distributed in the manner provided
for the distribution of the motor vehicle fuel excise tax in RCW 82.36.020. ((However,
a distributor licensed under this chapter may deliver motor vehicle fuel to an
importer in individual quantities of five hundred gallons or less and assume
the liability for payment of the tax to this state. Under such conditions, the
importer is exempt from the requirements of this section.)) For failure to
comply with this chapter such person is subject to the same penalties imposed
upon ((distributors)) licensees. 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))
licensees. Nothing in this section may be construed as classifying such
persons as ((distributors)) licensees.
Sec.
23. RCW
82.36.120 and 1994 c 262 s 21 are each amended to read as follows:
If
a ((distributor)) licensee is delinquent in the payment of an
obligation imposed under this chapter, the department may give notice of the
amount of the delinquency by registered or certified mail to all persons having
in their possession or under their control any credits or other personal
property belonging to such ((distributor)) licensee, or owing any
debts to such ((distributor)) licensee at the time of receipt by
them of such notice. Upon service, the notice and order to withhold and
deliver constitutes a continuing lien on property of the taxpayer. The
department shall include in the caption of the notice to withhold and deliver
"continuing lien." The effective date of a notice to withhold and
deliver served under this section is the date of service of the notice. A
person so notified shall neither transfer nor make any other disposition of
such credits, personal property, or debts until the department consents to a
transfer or other disposition. All persons so notified must, within twenty
days after receipt of the notice, advise the department of any and all such
credits, personal property, or debts in their possession, under their control
or owing by them, as the case may be, and shall deliver upon demand the
credits, personal property, or debts to the department or its duly authorized
representative to be applied to the indebtedness involved.
If
a person fails to answer the notice within the time prescribed by this section,
it is lawful for the court, upon application of the department and after the
time to answer the notice has expired, to render judgment by default against
the person for the full amount claimed by the department in the notice to
withhold and deliver, together with costs.
Sec.
24. RCW
82.36.130 and 1961 c 15 s 82.36.130 are each amended to read as follows:
If
any ((distributor)) licensee is in default for more than ten days
in the payment of any excise taxes or penalties thereon, the director shall
issue a warrant under the official seal of ((his)) the director's
office directed to the sheriff of any county of the state commanding him or
her to levy upon and sell the goods and chattels of the ((distributor))
licensee, without exemption, found within his or her
jurisdiction, for the payment of the amount of such delinquency, with the added
penalties and interest and the cost of executing the warrant, and to return
such warrant to the director and to pay the director the money collected by
virtue thereof within the time to be therein specified, which shall not be less
than twenty nor more than sixty days from the date of the warrant. The sheriff
to whom the warrant is directed shall proceed upon it in all respects and with
like effect and in the same manner as prescribed by law in respect to
executions issued against goods and chattels upon judgment by a court of record
and shall be entitled to the same fees for his or her services to be
collected in the same manner.
Sec.
25. RCW
82.36.140 and 1961 c 15 s 82.36.140 are each amended to read as follows:
In
a suit or action by the state on any bond filed with the director recovery
thereon may be had without first having sought or exhausted its remedy against
the ((distributor)) licensee; nor shall the fact that the state
has pursued, or is in the course of pursuing, any remedy against the ((distributor))
licensee waive its right to collect the taxes, penalties, and interest
by proceeding against such bond or against any deposit of money or securities
made by the ((distributor)) licensee.
Sec.
26. RCW
82.36.150 and 1965 ex.s. c 79 s 5 are each amended to read as follows:
Every
((distributor)) licensee shall keep a true and accurate record on
such form as the director may prescribe of all stock of petroleum products on
hand, of all raw gasoline, gasoline stock, diesel oil, kerosene, kerosene
distillates, casing-head gasoline and other petroleum products needed in, or
which may be used in, compounding, blending, or manufacturing motor vehicle
fuel; of the amount of crude oil refined, the gravity thereof and the yield
therefrom, as well as of such other matters relating to transactions in
petroleum products as the director may require. Every ((distributor)) licensee
shall take a physical inventory of the petroleum products at least once during
each calendar month and have the record of such inventory and of the other
matters mentioned in this section available at all times for the inspection of
the director. Upon demand of the director every ((distributor)) licensee
shall furnish a statement under oath as to the contents of any records to be
kept hereunder.
((Every
producer shall keep a true and accurate record in such form as may be
prescribed by the director of all manufacture and distribution of casing-head
gasoline, kerosene distillates and other petroleum products used in, or which
may be used in, the blending, compounding, or manufacturing of motor vehicle
fuel, and every broker shall likewise keep a true and accurate record of all
purchases of such petroleum products in such manner as to disclose the vendor,
the quantity purchased, the correct description of the commodity, and the means
of transportation from such broker to the vendee. All records required by this
section shall be available at all times for the inspection of the director or
his representative who may require a statement under oath as to contents
thereof.))
Sec.
27. RCW
82.36.160 and 1996 c 104 s 5 are each amended to read as follows:
Every
((distributor)) licensee shall maintain in the office of his or
her principal place of business in this state, for a period of five years,
records of motor vehicle fuel received, sold, distributed, or used by the ((distributor))
licensee, in such form as the director may prescribe, together with
invoices, bills of lading, and other pertinent papers as may be required under
the provisions of this chapter.
Every
dealer purchasing motor vehicle fuel taxable under this chapter for the purpose
of resale, shall maintain within this state, for a period of two years a record
of motor vehicle fuels received, the amount of tax paid to the ((distributor))
licensee as part of the purchase price, together with delivery tickets,
invoices, and bills of lading, and such other records as the director shall
require.
Sec.
28. RCW
82.36.170 and 1961 c 15 s 82.36.170 are each amended to read as follows:
The
director may, from time to time, require additional reports from ((distributors,
brokers, dealers, or producers)) any licensee with reference to any
of the matters herein concerned. Such reports shall be made and filed on forms
prepared by the director.
NEW
SECTION. Sec. 29. The
department may require a person other than a licensee engaged in the business
of selling, purchasing, distributing, storing, transporting, or delivering
motor vehicle fuel to submit periodic reports to the department regarding the
disposition of the fuel. The reports must be on forms prescribed by the
department and must contain such information as the department may require.
Sec.
30. RCW
82.36.180 and 1967 ex.s. c 89 s 6 are each amended to read as follows:
The
director, or ((his)) duly authorized agents, may make such examinations
of the records, stocks, facilities, and equipment of ((distributors,
producers, brokers)) any licensee, and service stations, and such
other investigations as ((he may deem)) deemed necessary in
carrying out the provisions of this chapter. If such examinations or
investigations disclose that any reports of ((distributors of motor vehicle
fuel)) licensees theretofore filed with the director pursuant to the
requirements of this chapter have shown incorrectly the gallonage of motor
vehicle fuel distributed or the tax accruing thereon, the director may make
such changes in subsequent reports and payments of such ((distributors))
licensees as ((he may deem)) deemed necessary to correct
the errors disclosed.
Every
such ((distributor)) licensee or such other person not
maintaining records in this state so that an audit of such records may be made
by the director or ((his)) a duly authorized representative shall
be required to make the necessary records available to the director ((at his))
upon request and at ((his)) a designated office within
this state; or, in lieu thereof, the director or ((his)) a duly
authorized representative shall proceed to any out-of-state office at which the
records are prepared and maintained to make such examination.
Sec.
31. RCW
82.36.190 and 1990 c 250 s 80 are each amended to read as follows:
The
department shall suspend or revoke the license of any ((distributor))
licensee refusing or neglecting to comply with any provision of this
chapter. The department shall mail by registered mail addressed to such ((distributor))
licensee at ((his)) the last known address a notice of
intention to cancel, which notice shall give the reason for cancellation. The
cancellation shall become effective without further notice if within ten days
from the mailing of the notice the ((distributor)) licensee has
not made good his or her default or delinquency.
The
department may cancel any license issued to any ((distributor)) licensee,
such cancellation to become effective sixty days from the date of receipt of
the written request of such ((distributor)) licensee for cancellation
thereof, and the department may cancel the license of any ((distributor))
licensee upon investigation and sixty days notice mailed to the last
known address of such ((distributor)) licensee if the department
ascertains and finds that the person to whom the license was issued is no
longer engaged in ((the)) business ((of a distributor)), and has
not been so engaged for the period of six months prior to such cancellation.
No license shall be canceled upon the request of any ((distributor)) licensee
unless the ((distributor)) licensee, prior to the date of such
cancellation, pays to the state all taxes imposed by the provisions of this
chapter, together with all penalties accruing by reason of any failure on the
part of the ((distributor)) licensee to make accurate reports or
pay said taxes and penalties.
In
the event the license of any ((distributor)) licensee is
canceled, and in the further event that the ((distributor)) licensee
pays to the state all excise taxes due and payable by him or her upon
the receipt, sale, or use of motor vehicle fuel, together with any and all
penalties accruing by reason of any failure on the part of the ((distributor))
licensee to make accurate reports or pay said taxes and penalties, the
department shall cancel the bond filed by the ((distributor)) licensee.
Sec.
32. RCW
82.36.200 and 1965 ex.s. c 79 s 7 are each amended to read as follows:
The
director or ((his)) authorized agents may at any time during normal
business hours examine the records, stocks, facilities and equipment of any
person engaged in the transportation of motor vehicle fuel within the state of
Washington for the purpose of checking shipments or use of motor vehicle fuel,
detecting diversions thereof or evasion of taxes on same in enforcing the
provisions of this chapter.
Sec.
33. RCW
82.36.210 and 1965 ex.s. c 79 s 8 are each amended to read as follows:
Every
person operating any conveyance for the purpose of hauling, transporting or
delivering motor vehicle fuel in bulk ((to points in this state from any
point without this state)), shall ((before entering upon the public
highways of this state with such conveyance,)) have and possess during the
entire time they are hauling motor vehicle fuel, an invoice, bill of sale, or
other statement showing the ((true)) name ((and)), address,
and license number of the seller or consignor, the destination, name,
and address of the purchaser or consignee, license number, if ((any))
applicable, and the number of gallons. The person hauling such motor
vehicle fuel shall at the request of any ((sheriff, deputy sheriff,
constable, highway patrolman)) law enforcement officer, or authorized
representative of the department, or other person authorized by law to inquire
into, or investigate said matters, produce ((and offer)) for inspection
such invoice, bill of sale, or other statement and shall permit such official
to inspect and gauge the contents of the vehicle. ((If the hauler fails to
produce the invoice, bill of sale, or other statement, or if when produced it
fails to disclose the aforesaid information, the officer or other person
authorized to make inquiry, shall take and impound the motor vehicle fuel
together with the conveying equipment until the tax on the motor vehicle fuel,
together with penalty equal to one hundred percent of the tax, and other
expenses, charges, and costs have been paid. In case of default, and the taking
and impounding herein provided for, the tax, damages, and costs shall be
collected, even though the full excise tax may have already been paid on the
motor vehicle fuel. In case the tax, damages and other charges are not paid
within forty-eight hours after the taking of said property, the director may
proceed to sell it in the mode and manner provided by law for the sale of
personal property under execution.))
Sec.
34. RCW
82.36.230 and 1993 c 54 s 4 are each amended to read as follows:
The
provisions of this chapter requiring the payment of taxes do not apply to motor
vehicle fuel imported into the state in interstate or foreign commerce and
intended to be sold while in interstate or foreign commerce, nor to motor
vehicle fuel exported from this state by a ((qualified distributor)) licensee
nor to any motor vehicle fuel sold by a ((qualified distributor)) licensee
to the armed forces of the United States or to the national guard for use
exclusively in ships or for export from this state. The ((distributor))
licensee shall report such imports, exports and sales to the department
at such times, on such forms, and in such detail as the department may require,
otherwise the exemption granted in this section is null and void, and all fuel
shall be considered distributed in this state fully subject to the provisions
of this chapter. Each invoice covering exempt sales shall have the statement
"Ex Washington Motor Vehicle Fuel Tax" clearly marked thereon.
To
claim any exemption from taxes under this section on account of sales by a ((licensed
distributor)) licensee of motor vehicle fuel for export, the
purchaser shall obtain from the selling ((distributor)) licensee,
and such selling ((distributor)) licensee must furnish the
purchaser, an invoice giving such details of the sale for export as the
department may require, copies of which shall be furnished the department and
the entity of the state or foreign jurisdiction of destination which is charged
by the laws of that state or foreign jurisdiction with the control or
monitoring, or both, of the sales or movement of motor vehicle fuel in that
state or foreign jurisdiction. For the purposes of this section, motor
vehicle fuel distributed to a federally recognized Indian tribal reservation
located within the state of Washington is not considered exported outside this
state.
To
claim any ((exemption from taxes under this section)) refund of taxes
previously paid on account of sales of motor vehicle fuel to the armed
forces of the United States or to the national guard, the ((distributor))
licensee shall be required to execute an exemption certificate in such
form as shall be furnished by the department, containing a certified statement
by an authorized officer of the armed forces having actual knowledge of the
purpose for which the exemption is claimed. ((Any claim for exemption based
on such sales shall be made by the distributor within six months of the date of
sale.)) The provisions of this section exempting motor vehicle fuel sold
to the armed forces of the United States or to the national guard from the tax
imposed hereunder do not apply to any motor vehicle fuel sold to contractors
purchasing such fuel either for their own account or as the agents of the
United States or the national guard for use in the performance of contracts
with the armed forces of the United States or the national guard.
The
department may at any time require of any ((distributor)) licensee
any information the department deems necessary to determine the validity of the
claimed exemption, and failure to supply such data will constitute a waiver of
all right to the exemption claimed. The department is hereby empowered with
full authority to promulgate rules and regulations and to prescribe forms to be
used by ((distributors)) licensees in reporting to the department
so as to prevent evasion of the tax imposed by this chapter.
Upon
request from the officials to whom are entrusted the enforcement of the motor vehicle
fuel tax law of any other state, the District of Columbia, the United States,
its territories and possessions, the provinces, or the Dominion of Canada, the
department may forward to such officials any information which the department
may have relative to the import or export of any motor vehicle fuel by any ((distributor))
licensee: PROVIDED, That such governmental unit furnish like
information to this state.
NEW SECTION. Sec. 35. A
licensee, other than a motor vehicle fuel exporter, is entitled to a refund of
motor vehicle fuel tax previously paid on motor vehicle fuel which is purchased
from the licensee by a person who is exempt from payment of the motor vehicle
fuel tax imposed by this chapter. Application for the refund shall be accompanied
by an invoice or proof satisfactory to the department documenting each sale
wherein the purchaser was exempt the motor vehicle fuel tax. Claims for
refunds shall be made under this chapter.
Sec.
36. RCW
82.36.280 and 1993 c 141 s 1 are each amended to read as follows:
Any
person who uses any motor vehicle fuel for the purpose of operating any
internal combustion engine not used on or in conjunction with any motor vehicle
licensed to be operated over and along any of the public highways, and as the
motive power thereof, upon which motor vehicle fuel excise tax has been paid,
shall be entitled to and shall receive a refund of the amount of the motor
vehicle fuel excise tax paid on each gallon of motor vehicle fuel so used,
whether such motor vehicle excise tax has been paid either directly to the
vendor from whom the motor vehicle fuel was purchased or indirectly by adding
the amount of such excise tax to the price of such fuel. No refund shall be
made for motor vehicle fuel consumed by any motor vehicle as herein defined that
is required to be registered and licensed as provided in chapter 46.16 RCW; and
is operated over and along any public highway except that a refund shall be
allowed for motor vehicle fuel consumed:
(1)
In a motor vehicle owned by the United States that is operated off the public
highways for official use;
(2)
By auxiliary equipment not used for motive power, provided such consumption is
accurately measured by a metering device that has been specifically approved by
the department or is established by either of the following formulae:
(a)
For fuel used in pumping fuel or heating oils by a power take-off unit on a
delivery truck, refund shall be allowed claimant for tax paid on fuel purchased
at the rate of three-fourths of one gallon for each one thousand gallons of
fuel delivered: PROVIDED, That claimant when presenting his or her
claim to the department in accordance with the provisions of this chapter,
shall provide to said claim, invoices of fuel oil delivered, or such other
appropriate information as may be required by the department to substantiate
his or her claim; or
(b)
For fuel used in operating a power take-off unit on a cement mixer truck or
load compactor on a garbage truck, claimant shall be allowed a refund of
twenty-five percent of the tax paid on all fuel used in such a truck; and
(c)
The department is authorized to establish by rule additional formulae for
determining fuel usage when operating other types of equipment by means of
power take-off units when direct measurement of the fuel used is not feasible.
The department is also authorized to adopt rules regarding the usage of on
board computers for the production of records required by this chapter((;
and
(3)
Before December 31, 1992, in a commercial vehicle as defined in RCW 46.04.140
or a farm vehicle as defined in RCW 46.04.181, if the motor vehicle fuel consumed
contains nine and one-half percent or more by volume of alcohol and the
commercial vehicle or farm vehicle is operated off the public highways of this
state)).
Sec.
37. RCW
82.36.300 and 1963 ex.s. c 22 s 21 are each amended to read as follows:
Every
person who shall export any motor vehicle fuel for use outside of this state
and who has paid the motor vehicle fuel excise tax upon such motor vehicle fuel
shall be entitled to and shall receive a refund of the amount of the motor
vehicle fuel excise tax paid on each gallon of motor vehicle fuel so exported.
For the purposes of this section, motor vehicle fuel distributed to a
federally recognized Indian tribal reservation located within the state of
Washington is not considered exported outside this state.
Sec.
38. RCW
82.36.310 and 1995 c 318 s 3 are each amended to read as follows:
Any
person claiming a refund for motor vehicle fuel used or exported as in this
chapter provided shall not be entitled to receive such refund until he presents
to the director a claim upon forms to be provided by the director with such
information as the director shall require, which claim to be valid shall in all
cases be accompanied by the ((original)) invoice or invoices issued to
the claimant at the time of the purchases of the motor vehicle fuel, approved
as to invoice form by the director((: PROVIDED, That in the event of the
loss or destruction of the original invoice or invoices, the person claiming a
refund may submit in lieu thereof a duplicate copy of such invoice certified by
the vendor, but no payment of refund based upon such duplicate invoice shall be
made until after expiration of such statutory period specified in RCW 82.36.330
for filing of refund applications)). The requirement to provide
invoices may be waived for small refund amounts, as determined by the
department. Claims for refund of motor vehicle fuel tax must be at least
twenty dollars.
Any
person claiming refund by reason of exportation of motor vehicle fuel shall in
addition to the invoices required furnish to the director the export
certificate therefor, and the signature on the exportation certificate shall be
certified by a notary public. In all cases the claim shall be signed by the
person claiming the refund, if it is a corporation, by some proper officer of
the corporation, or if it is a limited liability company, by some proper
manager or member of the limited liability company.
Sec.
39. RCW
82.36.330 and 1971 ex.s. c 180 s 9 are each amended to read as follows:
Upon
the approval of the director of the claim for refund, the state treasurer shall
draw a warrant upon the state treasury for the amount of the claim in favor of
the person making such claim and the warrant shall be paid from the excise tax
collected on motor vehicle fuel: PROVIDED, That the state treasurer shall
deduct from each marine use refund claim an amount equivalent to one cent per
gallon and shall deposit the same in the coastal protection fund created by RCW
90.48.390. Applications for refunds of excise tax shall be filed in the office
of the director not later than the close of the last business day of a period
thirteen months from the date of purchase of such motor fuel, and if not filed
within this period the right to refund shall be forever barred, except that
such limitation shall not apply to claims for loss or destruction of motor
vehicle fuel as provided by the provisions of RCW 82.36.370. The department
shall pay interest of one percent on any refund payable under this chapter that
is issued more than thirty state business days after the receipt of a claim
properly filed and completed in accordance with this section. After the end of
the thirty business-day period, additional interest shall accrue at the rate of
one percent on the amount payable for each thirty calendar-day period, until
the refund is issued. Any person or the member of any firm or the officer
or agent of any corporation who makes any false statement in any claim required
for the refund of excise tax, as provided in this chapter, or who collects or
causes to be repaid to him or to any other person any such refund without being
entitled to the same under the provisions of this chapter shall be guilty of a
gross misdemeanor.
Sec.
40. RCW
82.36.335 and 1997 c 183 s 8 are each amended to read as follows:
In
lieu of the collection and refund of the tax on motor vehicle fuel used by a ((distributor))
licensee in such a manner as would entitle a purchaser to claim refund
under this chapter, credit may be given the ((distributor)) licensee
upon the ((distributor's)) licensee's tax return in the
determination of the amount of the ((distributor's)) licensee's
tax. Payment credits shall not be carried forward and applied to subsequent
tax returns.
Sec.
41. RCW
82.36.350 and 1961 c 15 s 82.36.350 are each amended to read as follows:
If
upon investigation the director determines that any claim has been supported by
an invoice or invoices fraudulently made or altered in any manner to support
the claim, ((he)) the director may suspend the pending and all
further refunds to any such person making the claim for a period not to exceed
one year.
Sec.
42. RCW
82.36.370 and 1967 c 153 s 5 are each amended to read as follows:
(1)
A refund shall be made in the manner provided in this chapter or a credit given
allowing for the excise tax paid or accrued on all motor vehicle fuel which is
lost or destroyed, while applicant shall be the owner thereof, through fire,
lightning, flood, wind storm, or explosion.
(2)
A refund shall be made in the manner provided in this chapter or a credit given
allowing for the excise tax paid or accrued on all motor vehicle fuel of five
hundred gallons or more which is lost or destroyed, while applicant shall be
the owner thereof, through leakage or other casualty except evaporation,
shrinkage or unknown causes: PROVIDED, That the director shall be notified in
writing as to the full circumstances surrounding such loss or destruction and
the amount of the loss or destruction within thirty days from the day of
discovery of such loss or destruction.
(3)
Recovery for such loss or destruction under either subsection (1) or (2) must
be susceptible to positive proof thereby enabling the director to conduct such
investigation and require such information as ((he)) the director
may deem necessary.
In
the event that the director is not satisfied that the fuel was lost or
destroyed as claimed, wherefore required information or proof as required
hereunder is not sufficient to substantiate the accuracy of the claim, ((he))
the director may deem as sufficient cause the denial of all right
relating to the refund or credit for the excise tax on motor vehicle fuel
alleged to be lost or destroyed.
NEW
SECTION. Sec. 43. A
motor vehicle fuel distributor, motor vehicle fuel importer, or motor vehicle
fuel blender, under rules adopted by the department, is entitled to a refund of
the tax paid on those sales of motor vehicle fuel for which no consideration
has been received from or on behalf of the purchaser and that has been declared
to be worthless accounts receivable. The amount of tax refunded must not
exceed the amount of tax paid by the motor vehicle fuel distributor, motor
vehicle fuel importer, or motor vehicle fuel blender under this chapter. If
the motor vehicle fuel distributor, motor vehicle fuel importer, or motor
vehicle fuel blender subsequently collects any amount from the account declared
worthless, the amount collected shall be apportioned between the charges for
the fuel and tax thereon. The motor vehicle fuel tax collected must be
returned to the department.
Sec.
44. RCW
82.36.375 and 1965 ex.s. c 79 s 16 are each amended to read as follows:
Unless
otherwise provided, any credit for erroneous overpayment of tax made by
a ((distributor)) licensee to be taken on a subsequent return or
any claim of refund for tax erroneously overpaid by a ((distributor)) licensee,
pursuant to the provisions of RCW 82.36.090, must be so taken within ((three))
five years after the date on which the overpayment was made to the
state. Failure to take such credit or claim such refund within the time
prescribed in this section shall constitute waiver of any and all demands
against this state on account of overpayment hereunder.
Except
in the case of a fraudulent report or neglect or refusal to make a report every
notice of additional tax, penalty or interest assessed hereunder shall be
served on the ((distributor)) licensee within ((three)) five
years from the date upon which such additional taxes became due.
Sec.
45. RCW
82.36.390 and 1996 c 104 s 6 are each amended to read as follows:
Any
person who((, through false statement, trick, or device, or otherwise,))
obtains motor vehicle fuel for export and fails to export the same or any
portion thereof, or causes such motor vehicle fuel or any thereof not to be
exported, or who diverts said motor vehicle fuel or any thereof or who causes
it to be diverted from interstate or foreign transit begun in this state, or
who unlawfully returns such fuel or any thereof to this state and sells or uses
it or any thereof in this state or causes it or any thereof to be used or sold
in this state and fails to notify the ((distributor)) licensee
from whom such motor vehicle fuel was originally purchased ((of his or her
act)), and any ((distributor)) licensee or ((other))
person who conspires with any person to withhold from export, or divert from
interstate or foreign transit begun in this state, or to return motor vehicle
fuel to this state for sale or use with intent to avoid any of the taxes
imposed by this chapter, is guilty of a felony, or gross misdemeanor in
accordance with the theft and anticipatory provisions of Title 9A RCW. Each shipment
illegally diverted or illegally returned shall be a separate offense, and the
unit of each shipment shall be the cargo of one vessel, or one railroad
carload, or one automobile truck load, or such truck and trailer load, or one
drum, or one barrel, or one case or one can.
Sec.
46. RCW
82.36.400 and 1971 ex.s. c 156 s 3 are each amended to read as follows:
It
shall be unlawful for any person to commit any of the following acts:
(1)
To display, or cause to permit to be displayed, or to have in possession, any
motor vehicle fuel ((distributor's)) license knowing the same to be
fictitious or to have been suspended, canceled, revoked or altered;
(2)
To lend to, or knowingly permit the use of, by one not entitled thereto, any
motor vehicle fuel ((distributor's)) license issued to the person
lending it or permitting it to be used;
(3)
To display or to represent as one's own any motor vehicle fuel ((distributor's))
license not issued to the person displaying the same;
(4)
To use a false or fictitious name or give a false or fictitious address in any
application or form required under the provisions of this chapter, or otherwise
commit a fraud in any application, record, or report;
(5)
To refuse to permit the director, or any agent appointed by him or her
in writing, to examine his or her books, records, papers, storage tanks,
or other equipment pertaining to the use or sale and delivery of motor vehicle
fuels within the state.
Except
as otherwise provided, any person violating any of the provisions of this
chapter shall be guilty of a gross misdemeanor and shall, upon conviction
thereof, be sentenced to pay a fine of not less than five hundred dollars nor
more than one thousand dollars and costs of prosecution, or imprisonment for
not more than one year, or both.
NEW
SECTION. Sec. 47. A
motor vehicle fuel distributor who incurs liability in December 1998 for the
motor vehicle fuel tax imposed under this chapter shall report the liability
and pay the tax in January 1999 in the manner required by this chapter as it
existed before January 1, 1999.
A
motor vehicle fuel distributor shall inventory all motor vehicle fuel that is
on hand or in possession as of 12:01 a.m. on January 1, 1999, and is not in the
bulk transfer-terminal system and shall report the results of the inventory to
the department no later than the last business day of February 1999. The
report of inventory must be made on a form prescribed by the department.
A
motor vehicle fuel distributor may pay the tax due on motor vehicle fuel in
inventory any time before February 28, 2000, but at least one-twelfth of the
amount due must be paid by the last day of each month starting with February
1999. Payments not received in accordance with this section are late and are
subject to the interest and penalty provisions of this chapter. Payments made
after February 2000 are late and are subject to the interest and penalty
provisions of this chapter.
NEW
SECTION. Sec. 48. (1)
It is intended that the ultimate liability for the tax imposed under this
chapter be upon the motor vehicle fuel user, regardless of the manner in which
collection of the tax is provided for in this chapter. The tax on motor
vehicle fuel imposed under this chapter, if not previously imposed and paid,
must be paid over to the department by the users of such motor vehicle fuel,
unless such use is exempt from the motor vehicle fuel tax.
(2)
This section does not apply to agreements entered into under RCW 82.36.450
between the department and federally recognized Indian tribes, nor does it
apply to the consent decrees entered in Confederated Tribes of the Colville
Reservation v. Washington Department of Licensing, No. CS-92-248-JLQ (E.D.
Wash.) and Teo v. Steffenson, No. CY-93-3050-AAM (E.D. Wash.).
NEW
SECTION. Sec. 49. The
department of licensing may enter into a motor vehicle fuel tax cooperative
agreement with another state or Canadian province for the administration,
collection, and enforcement of each state's or Canadian province's motor
vehicle fuel taxes.
Sec.
50. RCW
82.38.020 and 1995 c 287 s 3 are each amended to read as follows:
((As
used in this chapter:
(1)
"Person" means every natural person, fiduciary, association, or
corporation. The term "person" as applied to an association means
and includes the partners or members thereof, and as applied to corporations,
the officers thereof.
(2)
"Department" means the department of licensing.
(3)
"Highway" means every way or place open to the use of the public, as
a matter of right, for the purpose of vehicular travel.
(4)
"Motor vehicle" means every self-propelled vehicle designed for
operation upon land utilizing special fuel as the means of propulsion.
(5)
"Special fuel" means and includes all combustible gases and liquids
suitable for the generation of power for propulsion of motor vehicles, except
that it does not include motor vehicle fuel as defined in chapter 82.36 RCW.
(6)
"Bulk storage" means the placing of special fuel by a special fuel
dealer into a receptacle other than the fuel supply tank of a motor vehicle.
(7)
"Special fuel dealer" means any person engaged in the business of
delivering special fuel into the fuel supply tank or tanks of a motor vehicle
not then owned or controlled by him, or into bulk storage facilities for
subsequent use in a motor vehicle. For this purpose the term "fuel supply
tank or tanks" does not include cargo tanks even though fuel is withdrawn
directly therefrom for propulsion of the vehicle.
(8)
"Special fuel user" means any person purchasing special fuel into
bulk storage without payment of the special fuel tax for subsequent use in a
motor vehicle, or any person engaged in interstate commercial operation of
motor vehicles any part of which is within this state.
(9)
"Service station" means any location at which fueling of motor
vehicles is offered to the general public.
(10)
"Unbonded service station" means any service station at which an
unbonded special fuel dealer regularly makes sales of special fuel by means of
delivery thereof into the fuel supply tanks of motor vehicles.
(11)
"Bond" means: (a) A bond duly executed by such special fuel dealer
or special fuel user as principal with a corporate surety qualified under the
provisions of chapter 48.28 RCW which bond shall be payable to the state of
Washington conditioned upon faithful performance of all requirements of this
chapter, including the payment of all taxes, penalties, and other obligations
of such dealer, arising out of this chapter; or (b) a deposit with the state
treasurer by the special fuel dealer or special fuel user, under such terms and
conditions as the department may prescribe, a like amount of lawful money of
the United States or bonds or other obligations of the United States, the state
of Washington, or any county of said state, of an actual market value not less
than the amount so fixed by the department; or (c) such other instruments as
the department may determine and prescribe by rule to protect the interests of
the state and to insure compliance of the requirements of this chapter.
(12)
"Lessor" means any person (a) whose principal business is the bona
fide leasing or renting of motor vehicles without drivers for compensation to
the general public, and (b) who maintains established places of business and
whose lease or rental contracts require such motor vehicles to be returned to
the established places of business.
(13)
"Natural gas" means naturally occurring mixtures of hydrocarbon gases
and vapors consisting principally of methane, whether in gaseous or liquid
form.
(14)
"Standard pressure and temperature" means fourteen and seventy-three
hundredths pounds of pressure per square inch at sixty degrees Fahrenheit.
(15)
"Evasion" or "evade" means to diminish or avoid the
computation, assessment, or payment of authorized taxes or fees through:
(a)
A knowing: False statement, misrepresentation of fact, or other act of
deception; or
(b)
An intentional: Omission, failure to file a return or report, or other act of
deception.)) The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1)
"Blended special fuel" means a mixture of undyed diesel fuel and
another liquid, other than a de minimus amount of the liquid, that can be used
as a fuel to propel a motor vehicle.
(2)
"Blender" means a person who produces blended special fuel outside
the bulk transfer-terminal system.
(3)
"Bond" means a bond duly executed with a corporate surety qualified
under chapter 48.28 RCW, which bond is payable to the state of Washington
conditioned upon faithful performance of all requirements of this chapter,
including the payment of all taxes, penalties, and other obligations arising
out of this chapter.
(4)
"Bulk transfer-terminal system" means the special fuel distribution
system consisting of refineries, pipelines, vessels, and terminals. Special
fuel in a refinery, pipeline, vessel, or terminal is in the bulk
transfer-terminal system. Special fuel in the fuel tank of an engine, motor
vehicle, or in a railcar, trailer, truck, or other equipment suitable for
ground transportation is not in the bulk transfer-terminal system.
(5)
"Bulk transfer" means a transfer of special fuel by pipeline or
vessel.
(6)
"Bulk storage" means the placing of special fuel into a receptacle
other than the fuel supply tank of a motor vehicle.
(7)
"Department" means the department of licensing.
(8)
"Dyed special fuel user" means a person authorized by the Internal
Revenue Code to operate a motor vehicle on the highway using dyed special fuel,
in which the use is not exempt from the special fuel tax.
(9)
"Evasion" or "evade" means to diminish or avoid the
computation, assessment, or payment of authorized taxes or fees through:
(a)
A knowing: False statement; misrepresentation of fact; or other act of
deception; or
(b)
An intentional: Omission; failure to file a return or report; or other act of
deception.
(10)
"Export" means to obtain special fuel in this state for sales or
distribution outside the state.
(11)
"Highway" means every way or place open to the use of the public, as
a matter of right, for the purpose of vehicular travel.
(12)
"Import" means to bring special fuel into this state by a means of
conveyance other than the fuel supply tank of a motor vehicle.
(13)
"International fuel tax agreement licensee" means a special fuel user
operating qualified motor vehicles in interstate commerce and licensed by the
department under the international fuel tax agreement.
(14)
"Lessor" means a person: (a) Whose principal business is the bona
fide leasing or renting of motor vehicles without drivers for compensation to
the general public; and (b) who maintains established places of business and
whose lease or rental contracts require the motor vehicles to be returned to
the established places of business.
(15)
"Licensee" means a person holding a license issued under this
chapter.
(16)
"Motor vehicle" means a self-propelled vehicle designed for operation
upon land utilizing special fuel as the means of propulsion.
(17)
"Natural gas" means naturally occurring mixtures of hydrocarbon gases
and vapors consisting principally of methane, whether in gaseous or liquid
form.
(18)
"Person" means a natural person, fiduciary, association, or
corporation. The term "person" as applied to an association means
and includes the partners or members thereof, and as applied to corporations,
the officers thereof.
(19)
"Position holder" means a person who holds the inventory position in
special fuel, as reflected by the records of the terminal operator. A person
holds the inventory position in special fuel if the person has a contractual
agreement with the terminal for the use of storage facilities and terminating
services at a terminal with respect to special fuel. "Position holder"
includes a terminal operator that owns special fuel in their terminal.
(20)
"Rack" means a mechanism for delivering special fuel from a refinery
or terminal into a truck, trailer, railcar, or other means of nonbulk transfer.
(21)
"Refiner" means a person who owns, operates, or otherwise controls a
refinery.
(22)
"Removal" means a physical transfer of special fuel other than by
evaporation, loss, or destruction.
(23)
"Special fuel" means and includes all combustible gases and liquids
suitable for the generation of power for propulsion of motor vehicles, except
that it does not include motor vehicle fuel as defined in chapter 82.36 RCW,
nor does it include dyed special fuel as defined by federal regulations.
However, if the federal regulations authorize dyed special fuel to be used in
highway vehicles, that usage is considered taxable under this chapter, unless
otherwise exempted.
(24)
"Special fuel distributor" means a person who acquires special fuel
from a supplier, distributor, or licensee for subsequent sale and distribution.
(25)
"Special fuel exporter" means a person, who purchases special fuel in
this state and directly exports the fuel by a means other than the bulk
transfer-terminal system to a destination outside of the state.
(26)
"Special fuel importer" means a person who imports special fuel into
the state by a means other than the bulk transfer-terminal system. If the
importer of record is acting as an agent, the person for whom the agent is
acting is the importer. If there is no importer of record, the owner of the
special fuel at the time of importation is the importer.
(27)
"Special fuel supplier" means a person who owns and stores special
fuel in a terminal facility or who refines and stores special fuel at a
refinery.
(28)
"Special fuel user" means a person engaged in uses of special fuel
that are not specifically exempted from the special fuel tax imposed under this
chapter.
(29)
"Terminal" means a special fuel storage and distribution facility
that has been assigned a terminal control number by the internal revenue
service, is supplied by pipeline or vessel, and from which reportable special
fuel is removed at a rack.
(30)
"Terminal operator" means a person who owns, operates, or otherwise
controls a terminal.
(31)
"Two-party exchange" or "buy-sell agreement" means a
transaction in which taxable special fuel is transferred from one licensed
supplier to another licensed supplier under an exchange or buy-sell agreement
whereby the supplier that is the position holder agrees to deliver taxable
special fuel to the other supplier or the other supplier's customer at the rack
of the terminal at which the delivering supplier is the position holder.
Sec.
51. RCW
82.38.030 and 1996 c 104 s 7 are each amended to read as follows:
(1)
There is hereby levied and imposed upon special fuel users a tax at the rate
computed in the manner provided in RCW 82.36.025 ((per)) on each
gallon of special fuel, or each one hundred cubic feet of compressed
natural gas, measured at standard pressure and temperature ((on the
use of special fuel in any motor vehicle operated upon the highways of this
state during the fiscal year for which such rate is applicable)).
(2)
The tax ((shall be collected by the special fuel dealer and shall be paid
over to the department as hereinafter provided: (a) With respect to all
special fuel delivered by a special fuel dealer into supply tanks of motor
vehicles or into storage facilities used for the fueling of motor vehicles at
unbonded service stations in this state; or (b) in all other transactions where
the purchaser is not the holder of a valid special fuel license issued pursuant
to this chapter allowing the purchase of untaxed special fuel, except sales of
special fuel for export. To claim an exemption on account of sales by a
licensed special fuel dealer for export, the purchaser shall obtain from the
selling special fuel dealer, and such selling special fuel dealer must furnish
the purchaser, an invoice giving such details of the sale for export as the
director may require, copies of which shall be furnished the department and the
entity of the state or foreign jurisdiction of destination which is charged by
the laws of that state or foreign jurisdiction with the control or monitoring
or both, of the sales or movement of special fuel in that state or foreign
jurisdiction.
(3)
The tax shall be paid over to the department by the special fuel user as
hereinafter provided with respect to the taxable use of special fuel upon which
the tax has not previously been imposed.
It
is expressly provided that delivery of special fuel may be made without
collecting the tax otherwise imposed, when such deliveries are made by a bonded
special fuel dealer to special fuel users who are authorized by the department
as hereinafter provided, to purchase fuel without payment of tax to the bonded
special fuel dealer.
(4))) imposed
by subsection (1) of this section is imposed when:
(a)
Special fuel is removed in this state from a terminal if the special fuel is
removed at the rack unless the removal is to a licensed exporter for direct
delivery to a destination outside of the state, or the removal is to a special
fuel distributor for direct delivery to an international fuel tax agreement
licensee under section 83 of this act;
(b)
Special fuel is removed in this state from a refinery if either of the
following applies:
(i)
The removal is by bulk transfer and the refiner or the owner of the special
fuel immediately before the removal is not a licensee; or
(ii)
The removal is at the refinery rack unless the removal is to a licensed
exporter for direct delivery to a destination outside of the state, or the
removal is to a special fuel distributor for direct delivery to an
international fuel tax agreement licensee under section 83 of this act;
(c)
Special fuel enters into this state for sale, consumption, use, or storage if
either of the following applies:
(i)
The entry is by bulk transfer and the importer is not a licensee; or
(ii)
The entry is not by bulk transfer;
(d)
Special fuel is removed in this state to an unlicensed entity unless there was
a prior taxable removal, entry, or sale of the special fuel;
(e)
Blended special fuel is removed or sold in this state by the blender of the
fuel. The number of gallons of blended special fuel subject to tax is the
difference between the total number of gallons of blended special fuel removed
or sold and the number of gallons of previously taxed special fuel used to
produced the blended special fuel;
(f)
Dyed special fuel is used on a highway, as authorized by the Internal Revenue
Code, unless the use is exempt from the special fuel tax; and
(g)
Special fuel purchased by an international fuel tax agreement licensee under
section 83 of this act is used on a highway.
(3)
The tax ((required)) imposed by this chapter, if required
to be collected by the ((seller)) licensee, is held in trust by
the ((seller)) licensee until paid to the department, and a ((seller))
licensee who appropriates or converts the tax collected to his or her
own use or to any use other than the payment of the tax to the extent that the
money required to be collected is not available for payment on the due date as
prescribed in this chapter is guilty of a felony, or gross misdemeanor in
accordance with the theft and anticipatory provisions of Title 9A RCW. A
person, partnership, corporation, or corporate officer who fails to collect the
tax imposed by this section, or who has collected the tax and fails to pay it
to the department in the manner prescribed by this chapter, is personally
liable to the state for the amount of the tax.
NEW
SECTION. Sec. 52. The
tax under RCW 82.38.030, if not previously imposed and paid, must be paid over
to the department by special fuel users and persons licensed under the
international fuel tax agreement or other fuel tax reciprocity agreements
entered into with the state of Washington, on the use of special fuel to
operate motor vehicles on the highways of this state, unless the use is exempt
from the tax under this chapter.
NEW
SECTION. Sec. 53. (1) A
position holder shall remit tax to the department on special fuel removed from
a terminal as provided in RCW 82.38.030(2)(a). On a two-party exchange, or
buy-sell agreement between two suppliers, the receiving exchange partner or
buyer becomes the position holder, who shall remit the tax.
(2)
A refiner shall remit tax to the department on special fuel removed from a
refinery as provided in RCW 82.38.030(2)(b).
(3)
An importer shall remit tax to the department on special fuel imported into
this state as provided in RCW 82.38.030(2)(c).
(4)
A blender shall remit tax to the department on the removal or sale of blended
special fuel as provided in RCW 82.38.030(2)(e).
(5)
A dyed special fuel user shall remit tax to the department on the use of dyed
special fuel as provided in RCW 82.38.030(2)(f).
NEW
SECTION. Sec. 54. A
terminal operator is jointly and severally liable for remitting the tax imposed
under RCW 82.38.030(1) if, at the time of removal:
(1)
The position holder with respect to the special fuel is a person other than the
terminal operator and is not a licensee;
(2)
The terminal operator is not a licensee;
(3)
The position holder has an expired internal revenue service notification
certificate issued under chapter 26, C.F.R. Part 48; or
(4)
The terminal operator had reason to believe that information on the
notification certificate was false.
NEW
SECTION. Sec. 55. A
terminal operator is jointly and severally liable for remitting the tax imposed
under RCW 82.38.030(1) if, in connection with the removal of special fuel that
is not dyed or marked in accordance with internal revenue service requirements,
the terminal operator provides a person with a bill of lading, shipping paper,
or similar document indicating that the special fuel is dyed or marked in
accordance with internal revenue service requirements.
NEW
SECTION. Sec. 56. A
person may not operate or maintain a motor vehicle on a public highway of this
state with dyed special fuel in the fuel supply tank unless the use is
authorized by the Internal Revenue Code and the person is the holder of an
uncanceled dyed special fuel user license issued to him or her by the
department. The special fuel tax set forth in RCW 82.38.030 is imposed on
users of dyed special fuel authorized by the Internal Revenue Code to operate
on-highway motor vehicles using dyed special fuel, unless the use is exempt
from the special fuel tax.
NEW
SECTION. Sec. 57. (1)
Special fuel that is dyed satisfies the dyeing requirements of this chapter if
it meets the dyeing requirements of the internal revenue service, including,
but not limited to, requirements respecting type, dosage, and timing.
(2)
Marking must meet the marking requirements of the internal revenue service.
(3)
As required by the internal revenue service, notice is required with respect to
dyed special fuel. A notice stating "DYED DIESEL FUEL, NONTAXABLE USE
ONLY, PENALTY FOR TAXABLE USE" must be:
(a)
Provided by the terminal operator to a person who receives dyed special fuel at
a terminal rack of that terminal operator;
(b)
Provided by a seller of dyed special fuel to its buyer if the special fuel is
located outside the bulk transfer-terminal system and is not sold from a retail
pump posted in accordance with the requirements of this subsection; or
(c)
Posted by a seller on a retail pump where it sells dyed special fuel for use by
its buyer.
Sec.
58. RCW
82.38.070 and 1990 c 250 s 83 are each amended to read as follows:
A
special fuel ((dealer shall be)) supplier is entitled((, under
rules and regulations prescribed by the department,)) to a credit of the
tax paid over to the department on those sales of special fuel for which the ((dealer))
supplier has received no consideration from or on behalf of the
purchaser((, which have been declared by the dealer to be worthless accounts
receivable, and which have been claimed as bad debts for federal income tax
purposes)). The amount of the tax ((refunded)) credit shall
not exceed the amount of tax imposed by this chapter on such sales. If a ((refund))
credit has been granted under this section, any amounts collected for
application against the accounts on which such a ((refund)) credit
is based shall be reported ((with the first)) on a subsequent
return filed after such collection, and the amount of ((refund)) credit
received by the ((dealer)) supplier based upon the collected
amount shall be returned to the department. In the event the ((refund))
credit has not been paid, the amount of the ((refund)) credit
requested by the ((dealer)) supplier shall be adjusted by the
department to reflect the decrease in the amount on which the claim is based.
((The department may require the dealer to submit periodical reports listing
accounts which are delinquent for ninety days or more.))
NEW
SECTION. Sec. 59. A
special fuel distributor, special fuel importer, or special fuel blender, under
rules adopted by the department, is entitled to a refund of the tax paid on
those sales of special fuel for which no consideration has been received from
or on behalf of the purchaser and that have been declared to be worthless
accounts receivable. The amount of the tax refunded must not exceed the amount
of tax paid by the special fuel distributor, special fuel importer, or special
fuel blender paid under this chapter. If the special fuel distributor, special
fuel importer, or special fuel blender subsequently collects any amount from
the account declared worthless, the amount collected shall be apportioned
between the charges for the fuel and tax thereon. The special fuel tax
collected must be returned to the department.
Sec.
60. RCW
82.38.080 and 1996 c 244 s 6 are each amended to read as follows:
(1)
There is exempted from the tax imposed by this chapter, the use of fuel for:
(((1)))
(a) Street and highway construction and maintenance purposes in motor
vehicles owned and operated by the state of Washington, or any county or
municipality;
(((2)))
(b) Publicly owned fire fighting equipment;
(((3)))
(c) Special mobile equipment as defined in RCW 46.04.552;
(((4)))
(d) Power pumping units or other power take-off equipment of any motor
vehicle which is accurately measured by metering devices that have been
specifically approved by the department or which is established by ((either))
any of the following formulae:
(((a)))
(i) Pumping propane, or fuel or heating oils or milk picked up from a
farm or dairy farm storage tank by a power take-off unit on a delivery truck,
at ((the)) a rate ((of three-fourths of one gallon for each
one thousand gallons of fuel delivered or milk picked up)) determined by
the department: PROVIDED, That claimant when presenting his or her
claim to the department in accordance with ((the provisions of)) this
chapter, shall provide to ((said)) the claim, invoices of
propane, or fuel or heating oil delivered, or such other appropriate
information as may be required by the department to substantiate his or her
claim; ((or
(b))) (ii)
Operating a power take-off unit on a cement mixer truck or a load compactor
on a garbage truck at the rate of twenty-five percent of the total gallons of
fuel used in such a truck; ((and)) or
(((c)))
(iii) The department is authorized to establish by rule additional
formulae for determining fuel usage when operating other types of equipment by
means of power take-off units when direct measurement of the fuel used is not
feasible. The department is also authorized to adopt rules regarding the usage
of on board computers for the production of records required by this chapter;
(((5)))
(e) Motor vehicles owned and operated by the United States government;
(((6)))
(f) Heating purposes;
(((7)))
(g) Moving a motor vehicle on a public highway between two pieces of
private property when said moving is incidental to the primary use of the motor
vehicle;
(((8)))
(h) Transportation services for persons with special transportation
needs by a private, nonprofit transportation provider regulated under chapter
81.66 RCW; ((and
(9))) (i)
Vehicle refrigeration units, mixing units, or other equipment powered by
separate motors from separate fuel tanks; and
(j)
The operation of a motor vehicle as a part of or incidental to logging
operations upon a highway under federal jurisdiction within the boundaries of a
federal area if the federal government requires a fee for the privilege of
operating the motor vehicle upon the highway, the proceeds of which are
reserved for constructing or maintaining roads in the federal area, or requires
maintenance or construction work to be performed on the highway for the
privilege of operating the motor vehicle on the highway.
(2)
There is exempted from the tax imposed by this chapter the removal or entry of
special fuel under the following circumstances and conditions:
(a)
If it is the removal from a terminal or refinery of, or the entry or sale of, a
special fuel if all of the following apply:
(i)
The person otherwise liable for the tax is a licensee other than a dyed special
fuel user or international fuel tax agreement licensee;
(ii)
For a removal from a terminal, the terminal is a licensed terminal; and
(iii)
The special fuel satisfies the dyeing and marking requirements of this chapter;
(b)
If it is an entry or removal from a terminal or refinery of taxable special
fuel transferred to a refinery or terminal and the persons involved, including
the terminal operator, are licensed; and
(c)(i)
If it is a special fuel that, under contract of sale, is shipped to a point
outside this state by a supplier by means of any of the following:
(A)
Facilities operated by the supplier;
(B)
Delivery by the supplier to a carrier, customs broker, or forwarding agent,
whether hired by the purchaser or not, for shipment to the out-of-state point;
(C)
Delivery by the supplier to a vessel clearing from port of this state for a
port outside this state and actually exported from this state in the vessel.
(ii)
For purposes of this subsection (2)(c):
(A)
"Carrier" means a person or firm engaged in the business of
transporting for compensation property owned by other persons, and includes
both common and contract carriers; and
(B)
"Forwarding agent" means a person or firm engaged in the business of
preparing property for shipment or arranging for its shipment.
(3)
Notwithstanding any provision of law to the contrary, every urban passenger
transportation system and carriers as defined by chapters 81.68 and 81.70 RCW
shall be exempt from the provisions of this chapter requiring the payment of
special fuel taxes. For the purposes of this section "urban passenger
transportation system" means every transportation system, publicly or
privately owned, having as its principal source of revenue the income from
transporting persons for compensation by means of motor vehicles and/or
trackless trolleys, each having a seating capacity for over fifteen persons
over prescribed routes in such a manner that the routes of such motor vehicles
and/or trackless trolleys, either alone or in conjunction with routes of other
such motor vehicles and/or trackless trolleys subject to routing by the same
transportation system, shall not extend for a distance exceeding twenty-five
road miles beyond the corporate limits of the county in which the original
starting points of such motor vehicles are located: PROVIDED, That no refunds
or credits shall be granted on special fuel used by any urban
transportation vehicle or vehicle operated pursuant to chapters 81.68 and 81.70
RCW on any trip where any portion of said trip is more than twenty-five road
miles beyond the corporate limits of the county in which said trip originated.
Sec.
61. RCW
82.38.090 and 1995 c 20 s 13 are each amended to read as follows:
(1)
It shall be unlawful for any person to ((act as a special fuel dealer or a
special fuel user)) engage in business in this state as any of
the following unless ((such)) the person is the holder of an
uncanceled ((special fuel dealer's or a special fuel user's)) license
issued to him or her by the department((.
A
special fuel dealer's license authorizes a person to deliver previously untaxed
special fuel into the fuel supply tanks of motor vehicles, collect the special
fuel tax on behalf of the state at the time of delivery, and remit the taxes
collected to the state as provided herein. A licensed special fuel dealer may
also deliver untaxed special fuel into bulk storage facilities of a licensed special
fuel user or dealer without collecting the special fuel tax. Special fuel
dealers, when making deliveries of special fuel into bulk storage to any person
not holding a valid special fuel license, must collect the special fuel tax at
time of delivery, unless the person to whom the delivery is made is
specifically exempted from the tax as provided herein.
A
special fuel user's license authorizes a person to purchase special fuel into
bulk storage for use in motor vehicles either on or off the public highways of
this state without payment of the special fuel tax at time of purchase.
Holders of special fuel licenses are all subject to the bonding, reporting, tax
payment, and record-keeping provisions of this chapter. All purchases of
special fuel by a licensed special fuel user directly into the fuel supply tank
of a motor vehicle are subject to the special fuel tax at time of purchase.
Special authorization may be given to farmers, logging companies, and
construction companies to purchase special fuel directly into the supply tanks
of nonhighway equipment or into portable slip tanks for nonhighway use without
payment of the special fuel tax.)) authorizing the person
to engage in that business:
(a)
Special fuel supplier;
(b)
Special fuel distributor;
(c)
Special fuel exporter;
(d)
Special fuel importer;
(e)
Special fuel blender;
(f)
Dyed special fuel user; or
(g)
International fuel tax agreement licensee.
(2)
A person engaged in more than one activity for which a license is required must
have a separate license classification for each activity, but a special fuel
supplier is not required to obtain a separate license classification for any
other activity for which a license is required.
(3) Special fuel users operating motor vehicles in
interstate commerce having two axles and a gross vehicle weight or registered
gross vehicle weight not exceeding twenty-six thousand pounds are not required
to be licensed. Special fuel users operating motor vehicles in interstate
commerce having two axles and a gross vehicle weight or registered gross
vehicle weight exceeding twenty-six thousand pounds, or having three or more
axles regardless of weight, or a combination of vehicles, when the combination
exceeds twenty-six thousand pounds gross vehicle weight, must comply with the
licensing and reporting requirements of this chapter. A copy of the license
must be carried in each motor vehicle entering this state from another state or
province.
Sec.
62. RCW
82.38.100 and 1983 c 78 s 1 are each amended to read as follows:
(1)
Any special fuel user operating a motor vehicle into this state for commercial
purposes may make application for a trip permit ((in lieu of a special fuel
user's license required in RCW 82.38.090 and 82.38.120 which)) that
shall be good for a period of three consecutive days beginning and ending on
the dates specified on the face of the permit issued, and only for the vehicle
for which it is issued.
(2)
Every permit shall identify, as the department may require, the vehicle for
which it is issued and shall be completed in its entirety, signed, and dated by
the operator before operation of the vehicle on the public highways of this
state. Correction of data on the permit such as dates, vehicle license number,
or vehicle identification number invalidates the permit. A violation of, or a
failure to comply with, this subsection is a gross misdemeanor.
(3)
For each permit issued, there shall be collected a filing fee of one dollar, an
administrative fee of ten dollars, and an excise tax of nine dollars. Such
fees and tax shall be in lieu of the special fuel tax otherwise assessable
against the permit holder for importing and using special fuel in a motor
vehicle on the public highways of this state and no report of mileage shall be
required with respect to such vehicle. Trip permits will not be issued if the
applicant has outstanding fuel taxes, penalties or interest owing to the state
or has had a special fuel license revoked for cause and the cause has not been
removed.
(4)
Blank permits may be obtained from field offices of the department of
transportation, Washington state patrol, department of licensing, or other
agents appointed by the department. The department may appoint county auditors
or businesses as agents for the purpose of selling trip permits to the public.
County auditors or businesses so appointed may retain the filing fee collected
for each trip permit to defray expenses incurred in handling and selling the
permits.
(5)
All fees and excise taxes collected by the department for trip permits shall be
credited and deposited in the same manner as the special fuel tax collected
under this chapter and shall not be subject to exchange, refund, or credit.
Sec.
63. RCW
82.38.110 and 1996 c 104 s 8 are each amended to read as follows:
(1)
Application for a ((special fuel dealer's license or a special fuel user's))
license issued under this chapter shall be made to the department. The
application shall be filed upon a form prepared and furnished by the department
and shall contain such information as the department deems necessary.
(2)
Every application for a special fuel ((dealer's)) license, other than
an application for a dyed special fuel user or international fuel tax agreement
license, must contain the following information to the extent it applies to
the applicant:
(((1)))
(a) Proof as the department ((may)) shall require
concerning the applicant's identity, including but not limited to his or her
fingerprints or those of the officers of a corporation making the application;
(((2)))
(b) The applicant's form and place of organization including proof that
the individual, partnership, or corporation is licensed to do business in this
state;
(((3)))
(c) The qualification and business history of the applicant and any
partner, officer, or director;
(((4)))
(d) The applicant's financial condition or history including a bank
reference and whether the applicant or any partner, officer, or director has
ever been adjudged bankrupt or has an unsatisfied judgment in a federal or
state court;
(((5)))
(e) Whether the applicant has been adjudged guilty of a crime that
directly relates to the business for which the license is sought and the time
elapsed since the conviction is less than ten years, or has suffered a judgment
within the preceding five years in a civil action involving fraud, misrepresentation,
or conversion and in the case of a corporation or partnership, all directors,
officers, or partners.
(3)
An applicant for a license as a special fuel importer must list on the
application each state, province, or country from which the applicant intends
to import fuel and, if required by the state, province, or country listed, must
be licensed or registered for special fuel tax purposes in that state,
province, or country.
(4)
An applicant for a license as a special fuel exporter must list on the
application each state, province, or country to which the exporter intends to
export special fuel received in this state by means of a transfer outside the
bulk transfer-terminal system and, if required by the state, province, or
country listed, must be licensed or registered for special fuel tax purposes in
that state, province, or country.
(5)
An applicant for a license as a special fuel supplier must have a federal
certificate of registry that is issued under the Internal Revenue Code and
authorizes the applicant to enter into federal tax-free transactions on special
fuel in the terminal transfer system.
(6)
After receipt of an application for a license, the director ((may)) shall
conduct an investigation to determine whether the facts set forth are true.
The director ((may)) shall require a fingerprint record check of
the applicant through the Washington state patrol criminal identification
system and the federal bureau of investigation before issuance of a license.
The results of the background investigation including criminal history
information may be released to authorized department personnel as the director
deems necessary. The department shall charge a license holder or license
applicant a fee of fifty dollars for each background investigation conducted.
(7)
An applicant who makes a false statement of a material fact on the application
may be prosecuted for false swearing as defined by RCW 9A.72.040.
((No))
(8) A special fuel ((dealer's)) license may not be issued
to any person or continued in force unless such person has furnished bond, as
defined in RCW 82.38.020, in such form as the department may require, to secure
his or her compliance with this chapter, and the payment of any and all taxes,
interest, and penalties due and to become due hereunder. The requirement of
furnishing a bond ((shall)) may be waived for special fuel ((dealers))
distributors who only deliver special fuel into the fuel tanks of marine
vessels, for dyed special fuel users and for persons issued licenses under
the international fuel tax agreement.
(9)
The department may require a ((special fuel user)) licensee to
post a bond if the ((special fuel user)) licensee, after having
been licensed, has failed to file timely reports or has failed to remit taxes
due, or when an investigation or audit indicates problems severe enough that
the department, in its discretion, determines that a bond is required to
protect the interests of the state. The department may also adopt rules
prescribing conditions that, in the department's discretion, require a bond to
protect the interests of the state.
(10)
The total amount of the bond or bonds required of any ((special fuel dealer
or special fuel user)) licensee shall be equivalent to three times
the estimated monthly fuel tax, determined in such manner as the department may
deem proper: PROVIDED, That those ((special fuel dealers)) licensees
having held a special fuel license for five or more years without having said
license suspended or revoked by the department shall be permitted to reduce the
amount of their bond to twice the estimated monthly tax liability: PROVIDED
FURTHER, That the total amount of the bond or bonds shall never be less than
five hundred dollars nor more than ((fifty)) one hundred thousand
dollars.
(11)
An application for a dyed special fuel user license must be made to the
department. The application must be filed upon a form prescribed by the
department and contain such information as the department deems necessary.
(12)
An application for an international fuel tax agreement license must be made to
the department. The application must be filed upon a form prescribed by the
department and contain such information as the department may require.
Sec.
64. RCW
82.38.120 and 1996 c 104 s 9 are each amended to read as follows:
Upon
receipt and approval of an application and bond, if required, the department
shall issue ((to the applicant)) a license to ((act as a special fuel
dealer or a special fuel user)) the applicant. However, the
department may refuse to issue a ((special fuel dealer's)) license ((or
a special fuel user's license)) to any person:
(1)
Who formerly held ((either type of)) a license issued under
chapter 82.36 or 82.42 RCW or this chapter which, prior to the time of
filing for application, has been revoked for cause;
(2)
Who is a subterfuge for the real party in interest whose license prior to the
time of filing for application, has been revoked for cause;
(3)
Who, as an individual licensee, or officer, director, owner, or managing
employee of a nonindividual licensee, has had a special fuel license revoked
for cause;
(4)
Who has an unsatisfied debt to the state assessed under either chapter 82.36,
82.38, ((or)) 46.87, or 82.42 RCW;
(5)
Who formerly held as an individual, officer, director, owner, managing employee
of a nonindividual licensee, or subterfuge for a real party in interest, a
license issued by the federal government or a state that allowed a person to
buy or sell untaxed motor vehicle or special fuel, which license, before the
time of filing for application, has been revoked for cause;
(6)
Who pled guilty to or was convicted as an individual, officer, director, owner,
or managing employee of a nonindividual licensee in this or any other state or
in any federal jurisdiction of a gross misdemeanor or felony crime directly
related to the business or has been subject to a civil judgment involving
fraud, misrepresentation, conversion, or dishonesty, notwithstanding chapter
9.96A RCW;
(7)
Who misrepresented or concealed a material fact in obtaining a license or in
reinstatement thereof;
(8)
Who violated a statute or administrative rule regulating fuel taxation or
distribution;
(9)
Who failed to cooperate with the department's investigations by:
(a)
Not furnishing papers or documents;
(b)
Not furnishing in writing a full and complete explanation regarding a matter
under investigation by the department; or
(c)
Not responding to subpoenas issued by the department, whether or not the
recipient of the subpoena is the subject of the proceeding;
(10)
Who failed to comply with an order issued by the director; or
(11)
Upon other sufficient cause being shown.
Before
such refusal, the department shall grant the applicant a hearing and shall
grant the applicant at least twenty days written notice of the time and place
thereof.
The
department shall determine from the information shown in the application or
other investigation the kind and class of license to be issued. For the
purpose of considering any application for a special fuel ((dealer's))
license, the department may inspect, cause an inspection, investigate, or cause
an investigation of the records of this or any other state or of the federal
government to ascertain the veracity of the information on the application form
and the applicant's criminal and licensing history.
All
licenses shall be posted in a conspicuous place or kept available for
inspection at the principal place of business of the owner thereof. License
holders shall reproduce the license by photostat or other method and keep a
copy on display for ready inspection at each additional place of business or
other place of storage from which special fuel is sold, delivered or used and
in each motor vehicle used by the license holder to transport special fuel
purchased by him or her for resale, delivery or use. ((Every licensed
special fuel user operating a motor vehicle registered in a jurisdiction other
than this state shall reproduce the license and carry a photocopy thereof with
each motor vehicle being operated upon the highways of this state.
A
special fuel dealer may use special fuel in motor vehicles owned or operated by
the dealer without securing a license as a special fuel user but the dealer is
subject to all other conditions, requirements, and liabilities imposed herein
upon a special fuel user.))
Each
special fuel ((dealer's license and special fuel user's)) license shall
be valid until the expiration date if shown on the license, or until suspended
or revoked for cause or otherwise canceled.
No special fuel ((dealer's license or special fuel user's))
license shall be transferable.
Sec.
65. RCW
82.38.130 and 1994 c 262 s 24 are each amended to read as follows:
The
department may revoke the license of any ((special fuel dealer, or special
fuel user)) licensee for any of the grounds constituting cause for
denial of a license set forth in RCW 82.38.120 or for other reasonable cause.
Before revoking such license the department shall notify the licensee to show
cause within twenty days of the date of the notice why the license should not
be revoked: PROVIDED, That at any time prior to and pending such hearing the
department may, in the exercise of reasonable discretion, suspend such license.
The
department shall cancel any ((license to act as a)) special fuel ((dealer,
or a special fuel user)) license immediately upon surrender thereof
by the holder.
Any
surety on a bond furnished by a ((special fuel dealer or special fuel user))
licensee as provided ((herein)) in this chapter shall be
released and discharged from any and all liability to the state accruing on
such bond after the expiration of forty-five days from the date which such
surety shall have lodged with the department a written request to be released
and discharged, but this provision shall not operate to relieve, release, or
discharge the surety from any liability already accrued or which shall accrue
before the expiration of the forty-five day period. The department shall
promptly, upon receiving any such request, notify the ((special fuel dealer
or special fuel user)) licensee who furnished the bond, and unless
the ((special fuel dealer or special fuel user shall)) licensee,
on or before the expiration of the forty-five day period, files a new
bond, in accordance with ((the requirements of)) this section, ((or
make a deposit in lieu thereof as provided in RCW 82.38.020(11),)) the
department forthwith shall cancel the special fuel dealer's or special fuel
user's license.
The
department may require a ((special fuel dealer or special fuel user to give
a)) new or additional surety bond ((or to deposit additional securities))
of the character specified in RCW 82.38.020(((11))) (3) if, in
its opinion, the security of the surety bond therefor filed by such ((special
fuel dealer or special fuel user, or the market value of the properties
deposited as security by such special fuel dealer or special fuel user)) licensee,
shall become impaired or inadequate. Upon failure of the ((special fuel
dealer or special fuel user)) licensee to give such new or
additional surety bond ((or to deposit additional securities)) within
forty-five days after being requested to do so by the department, or after he or
she shall fail or refuse to file reports and remit or pay taxes at the
intervals fixed by the department, the department forthwith shall cancel his or
her license.
Sec.
66. RCW
82.38.140 and 1996 c 104 s 10 and 1996 c 90 s 2 are each reenacted and amended
to read as follows:
(1)
Every ((special fuel dealer, special fuel user,)) licensee and
every person importing, manufacturing, refining, dealing in, transporting, blending,
or storing special fuel in this state shall keep for a period of not less than
five years open to inspection at all times during the business hours of the day
to the department or its authorized representatives, a complete record of all
special fuel purchased or received and all of such products sold, delivered, or
used by them. Such records shall show:
(a)
The date of each receipt;
(b)
The name and address of the person from whom purchased or received;
(c)
The number of gallons received at each place of business or place of storage in
the state of Washington;
(d)
The date of each sale or delivery;
(e)
The number of gallons sold, delivered, or used for taxable purposes;
(f)
The number of gallons sold, delivered, or used for any purpose not subject to
the tax imposed ((herein)) in this chapter;
(g)
The name, address, and special fuel license number of the purchaser if the
special fuel tax is not collected on the sale or delivery;
(h)
The inventories of special fuel on hand at each place of business at the end of
each month.
(2)(a)
All ((special fuel users using special fuel)) international fuel tax
agreement licensees and dyed special fuel users authorized to use dyed special
fuel on highway in vehicles licensed for highway operation shall maintain
detailed mileage records on an individual vehicle basis.
(b)
Such operating records shall show both on-highway and off-highway usage of
special fuel on a daily basis for each vehicle.
(c)
In the absence of operating records that show both on-highway and off-highway
usage of special fuel on a daily basis for each vehicle, fuel consumption must
be computed under RCW 82.38.060.
(3)
((Persons using special fuel for heating purposes only are not required to
maintain records of fuel usage.
(4)
Invoices shall be prepared for sales and deliveries of special fuel in the
manner and containing such information as may be prescribed by the department.
Every
special fuel dealer or special fuel user making such sales or deliveries of
special fuel and every person so receiving and purchasing special fuel must
each retain one copy of each such invoice as part of the dealer's permanent
records for the time and purposes above provided.
(5)
Every special fuel user shall keep, in addition to the dealer's records of
deliveries into motor vehicles, a complete record as prescribed by the
department of the total gallons of special fuel used for other purposes during
each month and the purposes for which said special fuel was used.
(6)
Subsections (1)(f), (2)(b), and (5) of this section do not apply to special
fuel users when the special fuel is used off-highway in farming, construction,
or logging operations. Upon filing a special fuel user tax report, every such
special fuel user shall certify and bear the burden of proof as to the number
of gallons of special fuel used off-highway.)) The
department may require a person other than a licensee engaged in the business
of selling, purchasing, distributing, storing, transporting, or delivering
special fuel to submit periodic reports to the department regarding the
disposition of the fuel. The reports must be on forms prescribed by the
department and must contain such information as the department may require.
(4)
Every person operating any conveyance for the purpose of hauling, transporting,
or delivering special fuel in bulk shall have and possess during the entire
time the person is hauling special fuel, an invoice, bill of sale, or other
statement showing the name, address, and license number of the seller or
consigner, the destination, name, and address of the purchaser or consignee,
license number, if applicable, and the number of gallons. The person hauling
such special fuel shall at the request of any law enforcement officer or
authorized representative of the department, or other person authorized by law
to inquire into, or investigate those types of matters, produce for inspection
such invoice, bill of sale, or other statement and shall permit such official
to inspect and gauge the contents of the vehicle.
Sec.
67. RCW
82.38.150 and 1996 c 104 s 11 are each amended to read as follows:
For
the purpose of determining the amount of liability for the tax herein imposed,
and to periodically update license information, each ((special fuel dealer
and each)) licensee, other than a special fuel distributor, an
international fuel tax agreement licensee, or a dyed special fuel user,
shall file monthly tax reports with the department, on forms prescribed
by the department. ((Special fuel dealers shall file the reports at the
intervals as shown in the following schedule:
Estimated
Yearly
Tax
Liability Reporting Frequency
$ 0
‑ $100 Yearly
$101
‑ 250 Semi-yearly
$251
‑ 499 Quarterly
$500
and over Monthly))
Dyed
special fuel users whose estimated yearly tax liability is two hundred
fifty dollars or less, shall file a report yearly, and dyed special fuel
users whose estimated yearly tax liability is more than two hundred fifty
dollars, shall file reports quarterly. Special fuel users licensed under
the international fuel tax agreement shall file reports quarterly. Special
fuel distributors subject to the pollution liability insurance agency fee and
reporting requirements shall remit pollution liability insurance agency returns
and any associated payment due to the department annually.
The
department shall establish the reporting frequency for each applicant at the
time the special fuel license is issued. If it becomes apparent that any ((special
fuel)) licensee is not reporting in accordance with the above schedule, the
department shall change the licensee's reporting frequency by giving thirty
days' notice to the licensee by mail to the licensee's address of record. A
report shall be filed with the department even though no special fuel was used,
or tax is due, for the reporting period. Each tax report shall contain a
declaration by the person making the same, to the effect that the statements
contained therein are true and are made under penalties of perjury, which
declaration shall have the same force and effect as a verification of the
report and is in lieu of such verification. The report shall show such
information as the department may reasonably require for the proper
administration and enforcement of this chapter. For counties within which an
additional excise tax on special fuel has been levied by that jurisdiction
under RCW 82.80.010, the report must show the quantities of special fuel sold,
distributed, or withdrawn from bulk storage by the reporting dealer or user
within the county's boundaries and the tax liability from its levy. ((The
special fuel dealer or special fuel user)) A licensee shall file ((the))
a tax report on or before the twenty-fifth day of the next succeeding
calendar month following the period to which it relates.
Subject
to the written approval of the department, tax reports may cover a period
ending on a day other than the last day of the calendar month. Taxpayers
granted approval to file reports in this manner will file such reports on or
before the twenty-fifth day following the end of the reporting period. No
change to this reporting period will be made without the written authorization
of the department.
If
the final filing date falls on a Saturday, Sunday, or legal holiday the next
secular or business day shall be the final filing date. Such reports shall be
considered filed or received on the date shown by the post office cancellation
mark stamped upon an envelope containing such report properly addressed to the
department, or on the date it was mailed if proof satisfactory to the
department is available to establish the date it was mailed.
The
department, if it deems it necessary in order to insure payment of the tax
imposed by this chapter, or to facilitate the administration of this chapter,
has the authority to require the filing of reports and tax remittances at
shorter intervals than one month if, in its opinion, an existing bond has
become insufficient.
((The
department may permit any special fuel user whose sole use of special fuel is
in motor vehicles or equipment exempt from tax as provided in RCW 82.38.075 and
82.38.080 (1), (2), (3), (8), and (9), in lieu of the reports required in this
section, to submit reports annually or as requested by the department, in such
form as the department may require.
A
special fuel user whose sole use of special fuel is for purposes other than the
propulsion of motor vehicles upon the public highways of this state shall not
be required to submit the reports required in this section.))
Sec.
68. RCW
82.38.160 and 1987 c 174 s 5 are each amended to read as follows:
(1)
The tax imposed by this chapter shall be computed ((as follows: (a) With
respect to special fuel upon which the tax has been collected by the seller
thereof as a special fuel dealer,)) by multiplying the tax rate per gallon
provided in this chapter by the number of gallons of special fuel ((delivered))
subject to the special fuel tax((; (b) with respect to special fuel on which
the tax has not been paid to a special fuel dealer in this state and which has
been consumed by the purchaser thereof as a special fuel user, by multiplying
the tax rate per gallon provided in this chapter by the number of gallons of
special fuel consumed by him in the propulsion of a motor vehicle on the
highways of this state)).
(2)
A special fuel distributor shall remit tax on special fuel purchased from a
special fuel supplier, and due to the state for that reporting period, to the
special fuel supplier.
(3)
At the election of the distributor, the payment of the special fuel tax owed on
special fuel purchased from a supplier shall be remitted to the supplier on
terms agreed upon between the distributor and the supplier or no later than two
business days before the last business day of the following month. This
election shall be subject to a condition that the distributor's remittances of
all amounts of special fuel tax due to the supplier shall be paid by electronic
funds transfer. The distributor's election may be terminated by the supplier
if the distributor does not make timely payments to the supplier as required by
this section. This section shall not apply if the distributor is required by
the supplier to pay cash or cash equivalent for special fuel purchases.
(4)
Except as provided in subsection (((3))) (5) of this section, the
tax return shall be accompanied by a remittance payable to the state treasurer
covering the tax ((moneys collected by the special fuel dealer or the))
amount determined to be due ((hereunder by licensed users of special fuels
during)) for the ((preceding)) reporting period.
(((3)))
(5) If the tax is paid by electronic funds transfer ((and the
reporting period ends on the last day of a calendar month)), the tax shall
be paid on or before the ((state business day immediately preceding the last
state business day of the month following the end of)) tenth calendar
day of the month that is the second month immediately following the
reporting period. When the reporting period is May, the tax shall be paid
on the last state business day of June. If the tax is paid by electronic
funds transfer and the reporting period ends on a day other than the last day
of a calendar month as provided in RCW 82.38.150, the tax shall be paid on or
before ((the state business day immediately preceding)) the last state
business day of the thirty-day period following the end of the reporting
period.
(((4)))
(6) The tax shall be paid by electronic funds transfer whenever the
amount due is fifty thousand dollars or more.
NEW
SECTION. Sec. 69. A
special fuel supplier shall, no later than the twentieth day or next business
day after the special fuel tax is due from the special fuel distributor under
RCW 82.38.160(2), notify the department of the failure of a special fuel
distributor to pay the full amount of the tax owed.
Upon
notification and submission of satisfactory evidence by a special fuel supplier
that a special fuel distributor has failed to comply with RCW 82.38.160(2), the
department may suspend the license of the special fuel distributor.
Upon
the suspension, the department shall immediately notify all special fuel
suppliers that the authority of the special fuel distributor to purchase
tax-deferred special fuel has been suspended and all subsequent purchases of
special fuel by the special fuel distributor must be tax-paid at the time of
removal.
If, after notification by the department, a special fuel supplier
continues to sell tax-deferred special fuel to a special fuel distributor whose
license is suspended, the special fuel supplier's license is subject to
revocation or suspension under RCW 82.38.130. Furthermore, if notified of a
license suspension, a special fuel supplier is liable for any unpaid special
fuel tax owed on special fuel sold to a suspended special fuel distributor.
Sec.
70. RCW
82.38.170 and 1996 c 104 s 12 are each amended to read as follows:
(1)
If any ((special fuel dealer or special fuel user)) licensee
fails to pay any taxes collected or due the state of Washington ((by said
dealer or user)) within the time prescribed by RCW 82.38.150 and 82.38.160,
((said dealer or user)) the licensee shall pay in addition to
such tax a penalty of ten percent of the amount thereof.
(2)
If it be determined by the department that the tax reported by any ((special
fuel dealer or special fuel user)) licensee is deficient it may
proceed to assess the deficiency on the basis of information available to it
and there shall be added to this deficiency a penalty of ten percent of the
amount of the deficiency.
(3)
If any ((special fuel dealer or special fuel user)) licensee,
whether or not he or she is licensed as such, fails, neglects, or refuses to
file a special fuel tax report required under this chapter, the
department may, on the basis of information available to it, determine the tax
liability of the ((special fuel dealer or the special fuel user)) licensee
for the period during which no report was filed, and to the tax as thus
determined, the department shall add the penalty and interest provided in
subsection (2) of this section. An assessment made by the department pursuant
to this subsection or to subsection (2) of this section shall be presumed to be
correct, and in any case where the validity of the assessment is drawn in
question, the burden shall be on the person who challenges the assessment to
establish by a fair preponderance of the evidence that it is erroneous or
excessive as the case may be.
(4)
If any ((special fuel dealer or special fuel user shall)) licensee
establishes by a fair preponderance of evidence that his or her failure
to file a report or pay the proper amount of tax within the time prescribed was
due to reasonable cause and was not intentional or willful, the department may
waive the penalty prescribed in subsections (1), (2), and (3) of this section.
(5)
If any ((special fuel dealer or special fuel user shall)) licensee
files a false or fraudulent report with intent to evade the tax imposed
by this chapter, there shall be added to the amount of deficiency determined by
the department a penalty equal to twenty-five percent of the deficiency, in
addition to the penalty provided in subsection (2) of this section and all
other penalties prescribed by law.
(6)
Any special fuel tax, penalties, and interest payable under 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 amount or any portion
thereof should have been paid until the date of payment: PROVIDED, That the
department may waive the interest when it determines that the cost of
processing the collection of the interest exceeds the amount of interest due.
(7)
Except in the case of violations of filing a false or fraudulent report, if the
department deems mitigation of penalties and interest to be reasonable and in
the best interests of carrying out the purpose of this chapter, it may mitigate
such assessments upon whatever terms the department deems proper, giving
consideration to the degree and extent of the lack of records and reporting
errors. The department may ascertain the facts regarding recordkeeping and
payment penalties in lieu of more elaborate proceedings under this chapter.
(8)
Except in the case of a fraudulent report or of neglect or refusal to make a report,
every deficiency shall be assessed under subsection (2) of this section within
five years from the twenty-fifth day of the next succeeding calendar month
following the reporting period for which the amount is proposed to be
determined or within five years after the return is filed, whichever period
expires the later.
(9)
Any ((special fuel dealer or special fuel user)) licensee against
whom an assessment is made under the provisions of subsections (2) or (3) of
this section may petition for a reassessment thereof within thirty days after
service upon the ((special fuel dealer or special fuel user)) licensee
of notice thereof. If such petition is not filed within such thirty day
period, the amount of the assessment becomes final at the expiration thereof.
If
a petition for reassessment is filed within the thirty day period, the
department shall reconsider the assessment and, if the ((special fuel dealer
or special fuel user)) licensee has so requested in his or her
petition, shall grant such ((special fuel dealer or special fuel user)) licensee
an oral hearing and give the ((special fuel dealer or special fuel user))
licensee ten days' notice of the time and place thereof. The department
may continue the hearing from time to time. The decision of the department
upon a petition for reassessment shall become final thirty days after service
upon the ((special fuel dealer or special fuel user)) licensee of
notice thereof.
Every
assessment made by the department shall become due and payable at the time it
becomes final and if not paid to the department when due and payable, there
shall be added thereto a penalty of ten percent of the amount of the tax.
(10)
Any notice of assessment required by this section shall be served personally or
by certified or registered mail; if by mail, service shall be made by
depositing such notice in the United States mail, postage prepaid addressed to
the ((special fuel dealer or special fuel user)) licensee at his
or her address as the same appears in the records of the department.
(11)
Any licensee who has had ((either their)) the licensee's special
fuel ((user)) license ((or special fuel dealer license, or both,))
revoked shall pay a one hundred dollar penalty prior to the issuance of a new
license.
(12)
Any person who, upon audit or investigation by the department, is found to have
not paid special fuel taxes as required by this chapter shall be subject to
cancellation of all vehicle registrations for vehicles utilizing special fuel
as a means of propulsion. Any unexpired Washington tonnage on the vehicles in
question may be transferred to a purchaser of the vehicles upon application to
the department who shall hold such tonnage in its custody until a sale of the
vehicle is made or the tonnage has expired.
(13)
Unless expressly authorized by the Internal Revenue Code and this chapter, a
person using dyed special fuel in the propulsion of a motor vehicle upon the
highways of this state is subject to a civil penalty of ten dollars for each
gallon of dyed special fuel placed into the supply tank of the motor vehicle,
or one thousand dollars, whichever is greater. The civil penalty collected as
a result of this subsection must be deposited in the motor vehicle fund. The
penalties must be collected and administered under this chapter.
(14)
For the purposes of enforcement of this section, the Washington state patrol or
other commercial vehicle safety alliance-certified officers may inspect,
collect, and secure samples of special fuel used in the propulsion of a vehicle
operated upon the highways of this state to detect the presence of dye or other
chemical compounds.
(15)
The Washington state patrol shall, by January 1, 1999, develop and implement
procedures for collection, analysis, and storage of fuel samples collected
under this chapter.
(16)
RCW 43.05.110 does not apply to the civil penalties imposed under subsection
(13) of this section.
Sec.
71. RCW
82.38.180 and 1972 ex.s. c 138 s 4 are each amended to read as follows:
Any
person who has paid a special fuel tax either directly or to the vendor from
whom it was purchased may file a claim with the department for a refund
of the tax so paid and shall be reimbursed and repaid the amount of:
(1)
Any taxes previously paid on special fuel used for purposes other than for the
propulsion of motor vehicles upon the public highways in this state.
(2)
Any taxes previously paid on special fuel exported for use outside of this
state. Special fuel carried from this state in the fuel tank of a motor
vehicle is deemed to be exported from this state. Special fuel distributed
to a federally recognized Indian tribal reservation located within the state of
Washington is not considered exported outside this state.
(3)
Any tax, penalty, or interest erroneously or illegally collected or
paid.
(4)
Any taxes previously paid on all special fuel which is lost or destroyed, while
applicant shall be the owner thereof, through fire, lightning, flood, wind
storm, or explosion.
(5)
Any taxes previously paid on all special fuel of five hundred gallons or more
which is lost or destroyed while applicant shall be the owner thereof, through
leakage or other casualty except evaporation, shrinkage, or unknown causes.
(6)
Any taxes previously paid on special fuel that is inadvertently mixed with dyed
special fuel.
Recovery
for such loss or destruction under either subsection (4) ((or)),
(5), or (6) of this section must be susceptible to positive proof
thereby enabling the department to conduct such investigation and require such
information as they may deem necessary. In the event that the department is
not satisfied that the fuel was lost ((or)), destroyed, or
contaminated as claimed because information or proof as required hereunder
is not sufficient to substantiate the accuracy of the claim, they may deem such
as sufficient cause to deny all right relating to the refund or credit for the
excise tax paid on special fuel alleged to be lost or destroyed.
No
refund or claim for credit shall be approved by the department unless the
gallons of special fuel claimed as nontaxable satisfy the conditions
specifically set forth in this section and the nontaxable event or use occurred
during the period covered by the refund claim. Refunds or claims for credit by
sellers or users of special fuel shall not be allowed for anticipated
nontaxable use or events.
NEW
SECTION. Sec. 72. (1)
Upon application, the department may give special authorization to farmers,
logging companies, and construction companies to purchase nondyed special fuel
directly into the supply tanks of nonhighway equipment or into portable slip
tanks for nonhighway use without payment of the special fuel tax. Purchases of
this nondyed special fuel must be made at a card lock facility owned and
operated by a special fuel distributor who is required to pay the special fuel
tax on nondyed special fuel delivered to the card lock facility and has elected
to sell the special fuel in this manner. The election is solely at the
discretion of the special fuel distributor and must be approved by the
department.
(2)
A special fuel distributor who has paid the special fuel tax on nondyed special
fuel purchased by a holder of a special authorization may file a claim for
refund of the special fuel tax paid. A claim for refund of the special fuel
tax paid under this section is allowed only if all the following apply:
(a)
Special fuel tax was paid by the distributor on the nondyed special fuel to
which the claim relates and the claim is supported by an invoice or invoices
showing such payment;
(b)
The special fuel distributor sold the special fuel to a holder of a valid
special authorization issued by the department;
(c)
The claim contains the name and special authorization number of each purchaser
and the number of gallons sold to the purchaser;
(d)
The claim contains a statement that the special fuel distributor has not included
the amount of the tax in the sale price of the nondyed special fuel and has not
collected the special fuel tax from the purchaser; and
(e)
The claim contains a statement that the special fuel covered by the claim did
not contain visible evidence of dye.
(3)
Each claim for refund under this section must be made on a form prescribed by
the department and must be for a period of not less than one week.
(4)
The department may terminate the election of a special fuel distributor if the
special fuel distributor fails to comply with this section.
(5)
The department shall require a holder of a special authorization to submit a
request at least once every two years for renewal of the special authorization
upon forms supplied by the department. The department shall prescribe the
information to be submitted by the special authorization holder and shall
determine whether the special authorization shall continue.
(6)
For any special fuel purchased under this special authorization, a special
authorization holder shall retain records required under RCW 82.38.190 for
refund submittals for three years following the purchase date of the fuel.
(7)
Notwithstanding the special provisions provided under this section, the special
authorization holder is subject to all provisions of this chapter that apply to
refund claims.
NEW
SECTION. Sec. 73. A
licensee, other than a special fuel exporter, is entitled to a refund of the
special fuel tax previously paid on special fuel which has been purchased from
the licensee by a person who is exempt from payment of the special fuel tax
imposed by this chapter. Application for the refund shall be accompanied by an
invoice or proof satisfactory to the department documenting each sale wherein
the purchaser was exempt from the special fuel tax. Claims for refunds shall
be made under this chapter.
Sec.
74. RCW
82.38.190 and 1997 c 183 s 10 are each amended to read as follows:
(1)
Claims under RCW 82.38.180 shall be filed with the department on forms
prescribed by the department and shall show the date of filing and the period
covered in the claim, the number of gallons of special fuel used for purposes
subject to tax refund, and such other facts and information as may be required.
Every such claim shall be supported by an invoice or invoices issued to or by
the claimant, as may be prescribed by the department, and such other
information as the department may require. The requirement to provide
invoices may be waived for small refund amounts, as determined by the
department. Claims for refund of special fuel tax must be for at least twenty
dollars.
(2)
Any amount determined to be refundable by the department under RCW 82.38.180
shall first be credited on any amounts then due and payable from ((the
special fuel dealer or special fuel user or to any)) a person to
whom the refund is due, and the department shall then certify the balance
thereof to the state treasurer, who shall thereupon draw his or her
warrant for ((such)) the certified amount to ((such special
fuel dealer or special fuel user or any)) the person.
(3)
No refund or credit shall be approved by the department unless a written claim
for refund or credit stating the specific grounds upon which the claim is
founded is filed with the department:
(a)
Within thirteen months from the date of purchase or from the last day of the
month following the close of the reporting period for which the refundable
amount or credit is due with respect to refunds or credits allowable under RCW
82.38.180((, subsections)) (1), (2), (4), and (5), and if not
filed within this period the right to refund shall be forever barred.
(b)
Within ((three)) five years from the last day of the month
following the close of the reporting period for which the overpayment is due
with respect to the refunds or credits allowable under RCW 82.38.180(3). The
department shall refund any amount paid that has been verified by the
department to be more than ten dollars over the amount actually due for the
reporting period. Payment credits shall not be carried forward and applied to
subsequent tax returns for a person licensed under this chapter.
(4)
Within thirty days after disallowing any claim in whole or in part, the
department shall serve written notice of its action on the claimant.
(5)
Interest shall be paid upon any refundable amount or credit due under RCW
82.38.180(3) at the rate of one percent per month from the last day of the
calendar month following the reporting period for which the refundable amount
or credit is due.
The
interest shall be paid:
(a)
In the case of a refund, to the last day of the calendar month following the
date upon which the person making the overpayment, if he or she has not
already filed a claim, is notified by the department that a claim may be filed
or the date upon which the claim is approved by the department, whichever date
is earlier.
(b)
In the case of a credit, to the same date as that to which interest is computed
on the tax or amount against which the credit is applied.
If
the department determines that any overpayment has been made intentionally or
by reason of carelessness, it shall not allow any interest thereon.
(6)
The department shall pay interest of one percent on any refund payable under
RCW 82.38.180 (1), (2), or (6) that is issued more than thirty state business
days after the receipt of a claim properly filed and completed in accordance
with this section. After the end of the thirty business-day period, additional
interest shall accrue at the rate of one percent on the amount payable for each
thirty calendar-day period, until the refund is issued.
(7)
No injunction or writ of mandate or other legal or equitable process shall
issue in any suit, action or proceeding in any court against this state or
against any officer of the state to prevent or enjoin the collection under this
chapter of any tax or any amount of tax required to be collected.
Sec.
75. RCW
82.38.210 and 1979 c 40 s 15 are each amended to read as follows:
If
any ((special fuel dealer, supplier, or user)) licensee liable
for the remittance of tax imposed by this chapter fails to pay the same, the
amount thereof, including any interest, penalty, or addition to such tax,
together with any costs that may accrue in addition thereto, shall be a lien in
favor of the state upon all franchises, property, and rights to property,
whether real or personal, then belonging to or thereafter acquired by such
person, whether such property is employed by such person for personal or
business use or is in the hands of a trustee, or receiver, or assignee for the
benefit of creditors, from the date the taxes were due and payable, until the
amount of the lien is paid or the property sold in payment thereof. The lien
shall have priority over any lien or encumbrance whatsoever, except the lien of
other state taxes having priority by law, and except that such lien shall not
be valid as against any bona fide mortgagee, pledgee, judgment creditor, or
purchaser whose rights have attached prior to the time the department has filed
and recorded notice of such lien as hereinafter provided.
In
order to avail itself of the lien hereby created, the department shall file
with any county auditor a statement of claim and lien specifying the amount of
delinquent taxes, penalties and interest claimed by the department. From the
time of filing for record, the amount required to be paid shall constitute a
lien upon all franchises, property and rights to property, whether real or
personal, then belonging to or thereafter acquired by such person in the
county. Any lien as provided in this section may also be filed in the office
of the secretary of state. Filing in the office of the secretary of state
shall be of no effect, however, until the lien or copy thereof shall have been
filed with the county auditor in the county where the property is located.
When a lien is filed in compliance herewith and with the secretary of state,
such filing shall have the same effect as if the lien had been duly filed for
record in the office of the auditor in each county of this state.
Sec.
76. RCW
82.38.220 and 1994 c 262 s 26 are each amended to read as follows:
In
the event any ((special fuel user or special fuel dealer)) licensee
is delinquent in the payment of any obligation imposed under this chapter, the
department may give notice of the amount of such delinquency by registered or
certified mail to all persons having in their possession or under their control
any credits or other personal property belonging to ((such user or dealer))
the licensee or owing any debts to ((such user or dealer)) the
licensee, at the time of the receipt by them of such notice. Any person so
notified shall neither transfer nor make other disposition of such credits,
personal property, or debts until the department consents to a transfer or
other disposition. All persons so notified must, within twenty days after
receipt of the notice, advise the department of any and all such credits,
personal property, or debts in their possession, under their control or owing
by them, as the case may be, and shall immediately deliver such credits,
personal property, or debts to the department or its duly authorized
representative to be applied to the indebtedness involved.
Upon
service, the notice and order to withhold and deliver constitutes a continuing
lien on property of the taxpayer. The department shall include in the caption
of the notice to withhold and deliver "continuing lien." The
effective date of a notice to withhold and deliver served under this section is
the date of service of the notice.
If
a person fails to answer the notice within the time prescribed by this section,
it is lawful for the court, upon application of the department and after the
time to answer the notice has expired, to render judgment by default against
the party named in the notice to withhold and deliver for the full amount
claimed by the department in the notice to withhold and deliver, together with
costs.
Sec.
77. RCW
82.38.230 and 1979 c 40 s 17 are each amended to read as follows:
Whenever
any ((special fuel user, supplier or dealer)) licensee is
delinquent in the payment of any obligation imposed hereunder, and such
delinquency continues after notice and demand for payment by the department,
the department shall proceed to collect the amount due from the ((user,
supplier or dealer)) licensee in the following manner: The
department shall seize any property subject to the lien of said excise tax,
penalty, and interest and thereafter sell it at public auction to pay said
obligation and any and all costs that may have been incurred on account of the
seizure and sale. Notice of such intended sale and the time and place thereof
shall be given to such delinquent ((user, supplier or dealer)) licensee
and to all persons appearing of record to have an interest in such property. The
notice shall be given in writing at least ten days before the date set for the
sale by enclosing it in an envelope addressed to ((such user, supplier or
dealer)) the licensee at ((his)) the licensee's
address as the same appears in the records of the department and, in the case
of any person appearing of record to have an interest in such property,
addressed to such person at his or her last known residence or place of
business, and depositing such envelope in the United States mail, postage
prepaid. In addition, the notice shall be published for at least ten days
before the date set for the sale in a newspaper of general circulation
published in the county in which the property seized is to be sold. If there
is no newspaper of general circulation in such county, the notice shall be
posted in three public places in the county for a period of ten days. The
notice shall contain a description of the property to be sold, together with a
statement of the amount due ((hereunder)) under this chapter, the
name of the ((user, supplier or dealer)) licensee and the further
statement that unless such amount is paid on or before the time fixed in the
notice the property will be sold in accordance with law.
The
department shall then proceed to sell the property in accordance with the law
and the notice, and shall deliver to the purchaser a bill of sale or deed which
shall vest title in the purchaser. If upon any such sale the moneys received
exceed the amount due to the state ((hereunder)) under this chapter
from the delinquent ((user, supplier or dealer)) licensee, the
excess shall be returned to ((such user, supplier or dealer)) the
licensee and ((his)) the licensee's receipt obtained ((therefor))
for the excess. If any person having an interest in or lien upon the
property has filed with the department prior to such sale, notice of such
interest or lien, the department shall withhold payment of any such excess to
((such user, supplier or dealer)) the licensee pending a
determination of the rights of the respective parties thereto by a court of
competent jurisdiction. If for any reason the receipt of ((such user,
supplier or dealer shall not be)) the licensee is not available, the
department shall deposit such excess with the state treasurer as trustee for ((such
user, supplier or dealer, his)) the licensee or the licensee's
heirs, successors, or assigns: PROVIDED, That prior to making any seizure of
property as ((herein)) provided for in this section, the
department may first serve upon the ((user's, supplier's, or dealer's)) licensee's
bondsman a notice of the delinquency, with a demand for the payment of the
amount due.
Sec.
78. RCW
82.38.235 and 1979 c 40 s 22 are each amended to read as follows:
Whenever
any assessment shall have become final in accordance with the provisions of
this chapter, the department may file with the clerk of any county within the
state a warrant in the amount of the assessment of taxes, penalties plus
interest and a filing fee of five dollars. The clerk of the county wherein the
warrant is filed shall immediately designate a superior court cause number for
such warrant, and the clerk shall cause to be entered in the judgment docket
under the superior court cause number assigned to the warrant, the name of the
((special fuel user, supplier or dealer)) licensee mentioned in
the warrant, the amount of the tax, penalties, interest and filing fee and the
date when such warrant was filed. The aggregate amount of such warrant as
docketed shall become a lien upon the title to, and interest in all real and
personal property of named person against whom the warrant is issued, the same
as a judgment in a civil case duly docketed in the office of such clerk. Such
warrant so docketed shall be sufficient to support the issuance of writs of
execution and writs of garnishment in favor of the state in the manner provided
by law in the case of civil judgment, wholly or partially unsatisfied. The
clerk of the court shall be entitled to a filing fee of five dollars, which
shall be added to the amount of the warrant.
Sec.
79. RCW
82.38.240 and 1971 ex.s. c 175 s 25 are each amended to read as follows:
Whenever
any ((special fuel user or special fuel dealer)) licensee is
delinquent in the payment of any obligation hereunder the department may
transmit notice of such delinquency to the attorney general who shall at once
proceed to collect by appropriate legal action the amount due the state from ((such
user or dealer)) the licensee. In any suit brought to enforce the
rights of the state hereunder, a certificate by the department showing the
delinquency shall be prima facie evidence of the amount of the obligation, of
the delinquency thereof and of compliance by the department with all provisions
of this chapter relating to such obligation.
Sec.
80. RCW
82.38.260 and 1995 c 274 s 25 are each amended to read as follows:
The
department shall enforce the provisions of this chapter, and may prescribe,
adopt, and enforce reasonable rules and regulations relating to the
administration and enforcement thereof. The Washington state patrol and its
officers shall aid the department in the enforcement of this chapter, and, for
this purpose, are declared to be peace officers, and given police power and
authority throughout the state to arrest on sight any person known to have
committed a violation of the provisions of this chapter.
The
department or its authorized representative is hereby empowered to examine the
books, papers, records and equipment of any ((special fuel dealer, special
fuel user,)) licensee or any person dealing in, transporting, or
storing special fuel as defined in this chapter and to investigate the
character of the disposition which any person makes of such special fuel in
order to ascertain and determine whether all taxes due hereunder are being
properly reported and paid. The fact that such books, papers, records and
equipment are not maintained in this state at the time of demand shall not
cause the department to lose any right of such examination under this chapter
when and where such records become available.
The
department or its authorized representative is further empowered to investigate
the disposition of special fuel by any person where the department has reason
to believe that untaxed special fuel has been diverted to a use subject to the
taxes imposed by this chapter without said taxes being paid in accordance with
the requirements of this chapter.
For
the purpose of enforcing the provisions of this chapter it shall be presumed
that all special fuel delivered to service stations as well as all special fuel
otherwise received ((by a special fuel dealer or a special fuel user))
into storage and dispensing equipment designed to fuel motor vehicles is
delivered ((by the special fuel dealer or special fuel user)) into the
fuel supply tanks of motor vehicles and consumed in the propulsion of motor
vehicles on the highways of this state, unless the contrary is established by
satisfactory evidence.
The
department shall, upon request from the officials to whom are entrusted the
enforcement of the special fuel tax law of any other state, the District of
Columbia, the United States, its territories and possessions, the provinces or
the Dominion of Canada, forward to such officials any information which he or
she may have relative to the receipt, storage, delivery, sale, use, or other
disposition of special fuel by any ((special fuel dealer or special fuel
user, provided such)) licensee if the other state or states furnish
like information to this state.
Returns
required by this chapter, exclusive of schedules, itemized statements and other
supporting evidence annexed thereto, shall at all reasonable times be open to
the public.
NEW
SECTION. Sec. 81. It is
intended that the ultimate liability for the tax imposed under this chapter be
upon the user, regardless of the manner in which collection of the tax is
provided for in this chapter. However, this section does not apply to
agreements between the department and federally recognized Indian tribes
entered into under RCW 82.38.310, nor does it apply to the consent decrees
entered in Confederated Tribes of the Colville Reservation v. Washington
Department of Licensing, No. CS-92-248-JLQ (E.D. Wash.) and Teo v.
Steffenson, No. CY-93-3050-AAM (E.D. Wash.).
NEW
SECTION. Sec. 82. A
special fuel distributor who incurs liability in December 1998 for the special
fuel tax imposed under this chapter shall report the liability and pay the tax
in January 1999 in the manner required by this chapter as it existed before
January 1, 1999.
A
special fuel distributor or special fuel user shall inventory all special fuel,
including dyed special fuel, that is on hand or in the person's possession as
of 12:01 a.m. on January 1, 1999, and is not in the bulk transfer-terminal
system and shall report the results of the inventory to the department no later
than the last business day of February 1999. The report of inventory must be
made on a form prescribed by the department.
A
special fuel distributor may pay the tax due on special fuel in inventory any
time before February 28, 2000, but at least one-twelfth of the amount due must
be paid by the last day of each month starting with February 1999. Payments
not received in accordance with this section are late and are subject to the
interest and penalty provisions of this chapter. Payments made after February
2000 are late and are subject to the interest and penalty provisions of this
chapter.
A
special fuel user shall pay the tax due on fuel in inventory in accordance with
the filing frequency assigned to the user before the effective date of this
section. Payments not received in accordance with the filing frequency are
late and are subject to the interest and penalty provisions of this chapter.
NEW
SECTION. Sec. 83. (1)
An international fuel tax agreement licensee who meets the qualifications in
subsection (2) of this section may be given special authorization by the
department to purchase special fuel delivered into bulk storage without payment
of the special fuel tax at the time the fuel is purchased. The special
authorization applies only to full truck-trailer loads filled at a terminal
rack and delivered directly to the bulk storage facilities of the special
authorization holder. The licensee shall pay special fuel tax on the fuel at
the time the licensee files their international fuel tax agreement tax return
and accompanying schedule with the department. The accompanying schedule shall
be provided in a form and manner determined by the department and shall contain
information on purchases and usage of all nondyed special fuel purchased during
the reporting period. In addition, by the fifteenth day of the month following
the month in which fuel under the special authorization was purchased, the
licensee must report to the department, the name of the seller and the number
of gallons purchased for each purchase of such fuel, and any other information
as the department may require.
(2)
To receive or maintain special authorization under subsection (1) of this section,
the following conditions regarding the international fuel tax agreement
licensee must apply:
(a)
During the period encompassing the four consecutive calendar quarters
immediately preceding the fourth calendar quarter of the previous year, the
number of gallons consumed outside the state of Washington as reported on the
licensee's international fuel tax agreement tax returns must have been equal to
at least twenty percent of the nondyed special fuel gallons, including fuel
used on-road and off-road, purchased by the licensee in the state of
Washington, as reported on the accompanying schedules required under subsection
(1) of this section;
(b)
The licensee must have been licensed under the provisions of the international
fuel tax agreement during each of the four consecutive calendar quarters
immediately preceding the fourth calendar quarter of the previous year; and
(c)
The licensee has not violated the reporting requirements of this section.
(3)
A special fuel distributor who sells special fuel under the special
authorization provisions of this section is not liable for the special fuel tax
on the fuel. By the fifteenth day of the month following the month in which
the fuel was sold, the special fuel distributor shall report to the department,
the name and special authorization number of the purchaser and the number of
gallons sold for each purchase of such special fuel, and any other information
as the department may require. The special fuel supplier will report such
sales, in a manner prescribed by the department, at the time the special fuel
supplier submits the monthly tax report.
(4)
A supplier selling special fuel under the provisions of this section shall not
be responsible for taxes due for special fuel purchased under the provisions of
this section.
(5)
An international fuel tax agreement licensee who qualifies for a special
authorization under this section for calendar year 1999 is not subject to the
special fuel user requirements of section 82 of this act.
Sec.
84. RCW
43.05.110 and 1995 c 403 s 612 are each amended to read as follows:
The
department of agriculture, fish and wildlife, health, licensing, or natural
resources may issue a civil penalty provided for by law without first issuing a
notice of correction if: (1) The person has previously been subject to an
enforcement action for the same or similar type of violation of the same
statute or rule or has been given previous notice of the same or similar type
of violation of the same statute or rule; or (2) compliance is not achieved by
the date established by the department in a previously issued notice of
correction, if the department has responded to any request for review of such
date by reaffirming the original date or establishing a new date; (3) the
violation has a probability of placing a person in danger of death or bodily
harm, has a probability of causing more than minor environmental harm, or has a
probability of causing physical damage to the property of another in an amount
exceeding one thousand dollars; or (4) the violation was committed by a
business that employed fifty or more employees on at least one day in each of
the preceding twelve months. In addition, the department of fish and wildlife
may issue a civil penalty provided for by law without first issuing a notice of
correction for a violation of any rule dealing with seasons, catch or bag
limits, gear types, or geographical areas for fish or wildlife removal,
reporting, or disposal.
This
section does not apply to the civil penalties imposed under RCW 82.38.170(13).
Sec.
85. RCW
82.47.010 and 1991 c 173 s 2 are each amended to read as follows:
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))).
Sec.
86. RCW
82.80.010 and 1991 c 339 s 12 are each amended to read as follows:
(1)
Subject to the conditions of this section, any county may levy, by approval of
its legislative body and a majority of the registered voters of the county
voting on the proposition at a general or special election, additional excise
taxes equal to ten percent of the state-wide motor vehicle fuel tax rate under
RCW 82.36.025 on each gallon of motor vehicle fuel as defined in RCW
82.36.010(((2))) and on each gallon of special fuel as defined in RCW
82.38.020(((5))) sold within the boundaries of the county. Vehicles
paying an annual license fee under RCW 82.38.075 are exempt from the county
fuel excise tax. An election held under this section must be held not more
than twelve months before the date on which the proposed tax is to be levied.
The ballot setting forth the proposition shall state the tax rate that is
proposed. The county's authority to levy additional excise taxes under this
section includes the incorporated and unincorporated areas of the county. The
additional excise taxes are subject to the same exceptions and rights of refund
as applicable to other motor vehicle fuel and special fuel excise taxes levied
under chapters 82.36 and 82.38 RCW. The proposed tax shall not be levied less
than one month from the date the election results are certified by the county
election officer. The commencement date for the levy of any tax under this
section shall be the first day of January, April, July, or October.
(2)
Every person subject to the tax shall pay, in addition to any other taxes
provided by law, an additional excise tax to the director of licensing at the
rate levied by a county exercising its authority under this section.
(3)
The state treasurer shall distribute monthly to the levying county and cities
contained therein the proceeds of the additional excise taxes collected under
this section, after the deductions for payments and expenditures as provided in
RCW 46.68.090 (1) and (2) and under the conditions and limitations provided in
RCW 82.80.080.
(4)
The proceeds of the additional excise taxes levied under this section shall be
used strictly for transportation purposes in accordance with RCW 82.80.070.
(5)
The department of licensing shall administer and collect the county fuel
taxes. The department shall deduct a percentage amount, as provided by
contract, for administrative, collection, refund, and audit expenses incurred.
The remaining proceeds shall be remitted to the custody of the state treasurer
for monthly distribution under RCW 82.80.080.
NEW
SECTION. Sec. 87. The
department of licensing shall adopt rules necessary to implement this act and
shall seek the assistance of the fuel tax advisory committee in developing and
adopting the rules.
NEW
SECTION. Sec. 88. The
department of licensing may enter into a fuel tax cooperative agreement with
another state or Canadian province for the administration, collection, and
enforcement of each state's or Canadian province's fuel taxes.
NEW
SECTION. Sec. 89. The
following acts or parts of acts are each repealed:
(1) RCW
82.36.030 and 1996 c 104 s 1, 1994 c 262 s 18, 1993 c 54 s 2,
1991 c 339 s 14, 1990 c 42 s 202, 1987 c 174 s 2, & 1961 c 15 s 82.36.030;
(2) RCW
82.36.038 and 1987 c 174 s 3;
(3) RCW
82.36.220 and 1963 ex.s. c 22 s 20, 1961 ex.s. c 21 s 31, &
1961 c 15 s 82.36.220;
(4) RCW
82.38.040 and 1990 c 250 s 81, 1973 1st ex.s. c 156 s 2, &
1971 ex.s. c 175 s 5;
(5) RCW
82.38.082 and 1987 c 294 s 1; and
(6) RCW
82.38.086 and 1981 c 342 s 6.
NEW
SECTION. Sec. 90. (1)
Sections 8 through 12, 14, 15, 29, 35, 43, and 47 through 49 of this act are
each added to chapter 82.36 RCW.
(2)
Sections 52 through 57, 59, 69, 72, 73, 81 through 83, and 88 of this act are
each added to chapter 82.38 RCW.
NEW SECTION. Sec. 91. This
act takes effect January 1, 1999.
