Washington state Governor Jay Inslee signed a bill into law on Wednesday morning, which aims to strengthen fuel tax enforcement and eliminate revenue gaps.
“This marks the commencement of our legislative session,” declared the governor during the signing ceremony in Olympia for Engrossed House Bill 1964. The bill focuses on addressing a particular loophole, namely the inclusion of fuel tax within the price of gasoline paid by consumers at the pump. The governor expressed satisfaction in the bill’s passage, highlighting its overwhelming bipartisan support as an auspicious start to the session.”
The legislation sailed through the House with an overwhelming majority, securing a resounding victory with a vote of 92-4 on Jan. 29. In an equally impressive show of support, the Senate passed the bill with an impressive vote of 48-1 on Feb. 6.
The Department of Licensing has been given the authority to establish a specialized team, known as the “fuel tax discovery team,” to effectively monitor and investigate any potential fuel tax and registration violations. This team will play a crucial role in tracking and addressing any discrepancies or irregularities in fuel tax and registration practices. EHB 1964 ensures that the Department of Licensing has the necessary tools and resources to uphold compliance and enforce regulations in the fuel tax and registration domain.
Washington Governor, Jay Inslee, has announced a new bill that aims to crack down on fuel tax violators. Under this bill, the Department of Labor (DOL) will be tasked with establishing a dedicated team to investigate these violations. This team will also be granted the authority to assess civil violations. In order to ensure the protection of taxpayer information, any fuel tax reports submitted to the DOL will be exempt from public disclosure.
The governor emphasized that this is not a tax increase.
According to Inslee, the proposed measure does not result in higher taxes. Instead, it aims to ensure that individuals comply with their tax obligations, as is the norm for the majority of Washington residents.
During the floor remarks on House passage of the legislation last month, Rep. Bill Ramos, D-Issaquah, the primary sponsor of HB 1964, clarified some of the confusion surrounding the collection of fuel taxes.
At the time, he emphasized the lack of awareness regarding the collection of fuel taxes, stating, “People don’t realize how our fuel taxes are collected.” He pointed out that the common misconception is that individuals pay these taxes individually at the pump. However, he clarified that the responsibility lies with the fuel distributors who pick up the fuel from refineries. These taxes are incorporated into the price of fuel, resulting in everyone paying at the pump. It is important to note that the taxes are not collected directly at the pump, but rather included in the overall price.
The fiscal note of EHB 1964 estimates that it will generate around $16 million per biennium.
The fiscal note predicts that the current 2023-25 biennium will incur operating expenses of $1.63 million, while both the 2025-27 and 2027-29 biennia will require $2.24 million each for operating expenses.