HOUSE BILL REPORT

SB 5384

BYSenators Patterson, Craswell, Bender, McMullen and von Reichbauer

Exempting state ferry fuel from sales and use tax.

House Committe on Transportation

Majority Report:  Do pass.  (18)

      Signed by Representatives Walk, Chair; Betrozoff, Cooper, Day, G. Fisher, R. Fisher, Haugen, Heavey, Jones, Kremen, R. Meyers, Nelson, Prentice, Smith, D. Sommers, Todd, Walker and Zellinsky.

House Staff:Gene Schlatter (786-7316)

AS REPORTED BY COMMITTEE ON TRANSPORTATION MARCH 24, 1989

BACKGROUND:

Fuel used for nonhighway purposes is not subject to the 18-cents- per-gallon gas tax, but is subject to sales and use tax unless specifically exempted.  Public transportation systems are exempt from both fuel taxes and sales and use taxes.  The Washington State Ferry System is exempt from the fuel tax, but is subject to the sales and use tax.

SUMMARY:

Fuel purchased for marine use by the State Ferry System is exempt from the sales and use tax.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Terry McCarthy, Marine Division--Department of Transportation.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This provision resolves an equity issue between transit systems and the Ferry System.

House Committee - Testimony Against:      None Presented.