S-914                 _______________________________________________

                                                   SENATE BILL NO. 3535

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Wojahn, Johnson, Peterson and Granlund

Read first time 2/1/85 and referred to Committee on Ways and Means.

AN ACT Relating to excise taxation of motor vehicle and special fuel by cities; amending RCW 82.39.010 and 82.39.030; amending section 9, chapter 181, Laws of 1979 ex. sess. (uncodified); and adding a new section to chapter 82.39 RCW.

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

        Sec. 1.  Section 1, chapter 181, Laws of 1979 ex. sess. and RCW 82.39.010 are each amended to read as follows:

          The legislative authority of any city having a population ((of)) over ((four hundred)) one hundred fifty thousand may, by resolution or ordinance for the purposes authorized by RCW 82.39.030, fix and impose an excise tax on the sale or distribution of motor vehicle fuel and special fuel within such city.  The rate of such tax shall be in increments of one-tenth of a cent per gallon and shall not exceed two cents per gallon.  Any person paying such excise tax who, in turn, sells or distributes such fuel to another, whether or not for use, shall include the tax as part of the selling price of the fuel.  Any person thereafter paying a price for such fuel which includes an increment for the tax imposed hereunder, and who subsequently resells said fuel, shall include the increment so paid as part of the selling price of the fuel.

          The tax so imposed shall be collected and paid to the city imposing it but once in respect to any motor vehicle fuel or special fuel.  Such tax shall be in addition to any other tax authorized or imposed by law.  The total proceeds of such tax shall not exceed the sum of twenty-five million dollars plus administration and collection expenses pursuant to RCW 82.39.040 and refunds, if any, during the period July 1, ((1979)) 1985, through June 30, ((1985)) 1991.

        Sec. 2.  Section 3, chapter 181, Laws of 1979 ex. sess. and RCW 82.39.030 are each amended to read as follows:

          The entire proceeds of the tax imposed under this chapter, less refunds and less amounts deducted by the state department of licensing for administration and collection expenses pursuant to RCW 82.39.040, shall be used solely to finance the local share of preliminary engineering, right of way acquisition, and construction expenditures for any project located on one or more adjacent city streets, forming a state corridor ((with existing average weekday traffic in excess of sixty-five thousand vehicles)), which includes a high-level crossing of a waterway used for international commercial navigation.

        Sec. 3.  Section 9, chapter 181, Laws of 1979 ex. sess. (uncodified) is amended to read as follows:

          ((Sections 1 through 3 of this 1979 act)) RCW 82.39.010 through 82.39.030 shall expire on June 30, ((1985)) 1991, and ((section 4 of this 1979 act)) RCW 82.39.040 shall expire on June 30, ((1986)) 1992.

NEW SECTION. Sec. 4.     Section 3 of this act is added as a new section to chapter 82.39 RCW.

NEW SECTION. Sec. 5.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.