02/01/2000 01:08 PM House TRA

HB 243 - MARINE FUEL TAX FOR HARBOR MAINTENANCE                                                                                 
                                                                                                                                
CHAIRMAN HALCRO announced the first order of business as House Bill                                                             
243, "An Act relating to taxes on motor fuel used in or on boats                                                                
and watercraft; and providing for an effective date."  There is a                                                               
proposed committee substitute.                                                                                                  
                                                                                                                                
REPRESENTATIVE VIC KOHRING made a motion to adopt the proposed                                                                  
committee substitute for HB 243, version 1-LS074\K, Kurtz, 2/1/00.                                                              
There being no objection, Version K was before the committee.                                                                   
                                                                                                                                
CHAIRMAN HALCRO explained the proposed committee substitute                                                                     
incorporates the issues discussed on Thursday [January 27, 2000]                                                                
related to the definition of a qualified municipality.  The                                                                     
proposed committee substitute does not incorporate the issues of                                                                
limiting the tax, a sliding scale, or collecting the rebate because                                                             
the Department of Revenue thought that those issues would be best                                                               
left to the purview of the House Finance Committee.                                                                             
                                                                                                                                
CHAIRMAN HALCRO explained the changes were made to Section 3,                                                                   
subparagraphs (A) and (B) [page 2].  The changes define the                                                                     
qualifying municipality as one that has assumed responsibility for                                                              
its harbor, and has adopted a local ordinance dedicating the funds                                                              
to its harbor for maintenance and operation.                                                                                    
                                                                                                                                
Number 0227                                                                                                                     
                                                                                                                                
REPRESENTATIVE BEVERLY MASEK asked whether the changes apply to                                                                 
Section 4, of the proposed committee substitute, as well.                                                                       
                                                                                                                                
CHAIRMAN HALCRO replied "Yes."                                                                                                  
                                                                                                                                
Number 0282                                                                                                                     
                                                                                                                                
REPRESENTATIVE ALBERT KOOKESH asked whether the proposed committee                                                              
substitute would harm in any way the areas that would normally                                                                  
receive money.                                                                                                                  
                                                                                                                                
CHAIRMAN HALCRO replied no.  It simply addresses the municipalities                                                             
who have chosen to accept responsibility and take title for their                                                               
port or harbor.  The other communities who have not accepted that                                                               
responsibility would still get a benefit through the Department of                                                              
Transportation & Public Facilities.                                                                                             
                                                                                                                                
Number 0336                                                                                                                     
                                                                                                                                
REPRESENTATIVE BILL HUDSON stated, for the record, that this is not                                                             
a dedication of funds; it is strictly an indication of the intent                                                               
of the legislature.                                                                                                             
                                                                                                                                
CHAIRMAN HALCRO noted that the Department of Revenue is very                                                                    
concerned about the dedication of the revenues, which is why they                                                               
prefer to deal with that issue in the House Finance Committee.                                                                  
                                                                                                                                
Number 0377                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK made a motion to move CSHB 243, version                                                                    
1-LS074\K, Kurtz, 2/1/00, out of committee with individual                                                                      
recommendations and attached fiscal note; she asked unanimous                                                                   
consent.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KOHRING stated he would like to see the bill go one                                                              
step further of eliminating the tax altogether and going to a                                                                   
user-fee system.  The beneficiaries would then pay directly for the                                                             
different services offered by a harbor, as opposed to a tax being                                                               
applied to everybody across the board, especially since many might                                                              
not benefit.                                                                                                                    
                                                                                                                                
Number 0506                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK stated, to Representative Kohring, that his                                                                
comments on moving the bill to a user-fee [system] is way out of                                                                
line.  It would require a lot of changes to a system that is                                                                    
already in place.                                                                                                               
                                                                                                                                
Number 0559                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON asked Chairman Halcro whether there is a                                                                  
revised fiscal note.                                                                                                            
                                                                                                                                
CHAIRMAN HALCRO replied no.  The Department of Revenue wants to                                                                 
work with the House Finance Committee in determining the final                                                                  
outcome in relation to the issues of collection and reimbursement                                                               
before submitting a fiscal note.                                                                                                
                                                                                                                                
CHAIRMAN HALCRO stated, in response to Representative Kohring's                                                                 
comments, that this tax along with the motor fuel tax is as close                                                               
to a user fee as possible.  The problem with eliminating the marine                                                             
fuel tax altogether is because for some ports and harbors it's hard                                                             
to generate revenues.  In addition, under the concept of assuming                                                               
responsibility and relieving the state's liability, he thinks, that                                                             
those communities should be the beneficiary of the revenue.                                                                     
                                                                                                                                
CHAIRMAN HALCRO stated, there being no objection to the motion,                                                                 
CSHB 243(TRA) so moved from the House Transportation Standing                                                                   
Committee.