AN
ACT Relating to the taxation of fuel; and amending RCW 82.36.010, 82.36.020,
82.36.026, 82.38.020, 82.36.060, 82.38.030, 82.38.035, and 82.38.110.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.36.010 and 1998 c 176 s 6 are each amended to read as follows:
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)) holds a federal certificate of registry that is
issued under the internal revenue code and authorizes the person to enter into
federal tax-free transactions on motor vehicle fuel in the bulk
transfer-terminal system.
(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.
2. RCW
82.36.020 and 2000 c 103 s 13 are each amended to read as follows:
(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 sold or 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;
(f)
Motor vehicle fuel is sold by a licensed motor vehicle fuel supplier to a motor
vehicle fuel distributor, motor vehicle fuel importer, or motor vehicle fuel
blender and the motor vehicle fuel is not removed from the bulk
transfer-terminal system.
(3)
The proceeds of the motor vehicle fuel excise tax shall be distributed as
provided in RCW 46.68.090.
Sec.
3. RCW
82.36.026 and 1998 c 176 s 8 are each amended to read as follows:
(1)
A ((position holder)) licensed supplier 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 licensed 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).
Sec.
4. RCW
82.38.020 and 1998 c 176 s 50 are each amended to read as follows:
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)) holds a federal certificate issued under the internal revenue
code and authorizes the person to tax-free transactions on special fuel in the
bulk transfer-terminal system.
(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.
5. RCW
82.36.060 and 1998 c 176 s 18 are each amended to read as follows:
(1)
An application for a license 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 license must contain the following information to the
extent it applies to the applicant:
(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;
(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;
(c)
The qualification and business history of the applicant and any partner,
officer, or director;
(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;
(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
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.
(7)
Except as provided by subsection (8) of this section, before granting any
license 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 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, 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 licensee shall never be less
than five thousand dollars nor more than 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 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 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 licensee who furnished the bond; and unless the
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 license. Whenever a new bond is
furnished by a licensee, the department shall cancel 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 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
licensee, or the market value of the properties deposited as security by the
licensee, shall become impaired or inadequate; and upon the failure of the
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.
(8)
The department may waive the requirements of subsection (7) of this section for
licensed distributors if, upon determination by the department, the licensed
distributor has sufficient resources, assets, other financial instruments, or
other means, to adequately make payments on the estimated monthly motor vehicle
fuel tax payments, penalties, and interest arising out of this chapter. The
department shall adopt rules to administer this subsection.
Sec.
6. RCW
82.38.030 and 1998 c 176 s 51 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 on each gallon of special
fuel, or each one hundred cubic feet of compressed natural gas, measured at
standard pressure and temperature.
(2)
The tax 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 RCW 82.38.320;
(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 RCW 82.38.320;
(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 sold or 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
[produce])) produce 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
RCW 82.38.320 is used on a highway; and
(h)
Special fuel is sold by a licensed special fuel supplier to a special fuel
distributor, special fuel importer, or special fuel blender and the special
fuel is not removed from the bulk transfer-terminal system.
(3)
The tax imposed by this chapter, if required to be collected by the licensee,
is held in trust by the licensee until paid to the department, and a 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.
7. RCW
82.38.035 and 1998 c 176 s 53 are each amended to read as follows:
(1)
A ((position holder)) licensed supplier shall remit tax on
special fuel 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 licensed 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).
Sec.
8. RCW
82.38.110 and 1998 c 176 s 63 are each amended to read as follows:
(1)
Application for a 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 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:
(a)
Proof as the department 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;
(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;
(c)
The qualification and business history of the applicant and any partner,
officer, or director;
(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;
(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 shall conduct an
investigation to determine whether the facts set forth are true. The director
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.
(8)
A special fuel 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 may be waived:
(a) For special fuel distributors who only deliver special fuel into the
fuel tanks of marine vessels((,)); (b) for dyed special fuel
users ((and)); (c) for persons issued licenses under the
international fuel tax agreement; or (d) for licensed special fuel
distributors who, upon determination by the department, have sufficient
resources, assets, other financial instruments, or other means to adequately
make payments on the estimated monthly motor vehicle fuel tax payments,
penalties, and interest arising out of this chapter. The department shall
adopt rules to administer this section.
(9)
The department may require a licensee to post a bond if the 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 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 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 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.
