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                                           ENGROSSED HOUSE BILL NO. 1729

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State of Washington                              49th Legislature                              1986 Regular Session

By Representatives C. Smith, Walk, Prince, Nealey, Zellinsky, Bond, Lundquist, Fisch and Baugher

Read first time 1/22/86 and referred to Committee on Transportation.

AN ACT Relating to tax on special fuel dispensed from a keylock metered pump; amending RCW 82.38.090; and repealing RCW 82.38.145.

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

NEW SECTION. Sec. 1.  Section 21, chapter 40, Laws of 1979 and RCW 82.38.145 are each repealed.

        Sec. 2.  Section 10, chapter 175, Laws of 1971 ex. sess. as amended by section 5, chapter 40, Laws of 1979 and RCW 82.38.090 are each amended to read as follows:

          It shall be unlawful for any person to act as a special fuel dealer, a special fuel supplier or a special fuel user in this state unless such person is the holder of an uncanceled special fuel dealer's, a special fuel supplier's or a special fuel user's license issued to him by the department.  A special fuel supplier's license authorizes a person to sell special fuel without collecting the special fuel tax to other suppliers and dealers holding valid special fuel licenses.

          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 without collecting the special fuel tax.  Special fuel dealers and suppliers, 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 unless ((they have)) the purchaser has specific written authorization from the department as provided in RCW 82.38.040 or the purchase is made from an unattended keylock metered pump, cardtrol, or such similar dispensing devices.  Persons utilizing special fuel for heating purposes only are not required to be licensed.