Fuel Tax consolidation law
The Governor signedin 2013. The bill did the following:
- Standardized language and merged motor fuel and special fuel tax administration.
- Repealed RCW 82.36 (motor fuel law) and combined it with RCW 82.38 (special fuel law).
- Added administrative functions to RCW 82.42 (aircraft fuel tax law).
All changes are effective July 1, 2016. The new Taxpayer Access Point (TAP) project is currently underway and supports the Fuel Tax Administration law.
Fuel Tax consolidation changes
The new law:
- Simplifies, streamlines, and updates Washington State fuel tax statutes to make the fuel tax laws more uniform.
- Consolidates 13 license types to 4.
- Establishes 2 new registration types: Terminal Operators and Fuel Carriers.
- Requires fuel terminals in Washington to report fuel inventory, receipts, and disbursements.
- Requires all licensees to apply for new licenses and bonds.
- Eliminates the application requirements for fingerprint cards, background checks, and financial statements.
- Standardizes penalty rates.
Licenses get a makeover
Aircraft Distributor (combined Aviation Gas and Jet Fuel)
- Motor Fuel (MF) license types will be: Supplier, Distributor, and Blender.
- Special Fuel (SF) license types will be: Supplier, Distributor, and Blender.
- Aircraft Fuel (Air) license types will be: Aircraft Distributor.
New registration types
- Fuel Carrier
- Terminal Operator
Effective July 1, 2016, all IRS Terminal Operators must:
- Become licensed as a Terminal Operator; and
- File monthly reports, including:
- Fuel receipts
- Beginning and ending inventory balances
Reporting Requirement: Reports will be due monthly on or before the 25th of the month following the reporting period to which it relates. Licensees operating more than one terminal must file a separate monthly report for each terminal. Terminal Operators can report on the TAP – PRFT Taxpayer Access Point.
Bonding requirement: Terminal Operators don't need to hold a bond.
Effective July 1, 2016, Fuel Carriers transporting fuel via rail need to:
- Become registered as a Fuel Carrier with the Department; and
- File monthly reports of transported fuel.
Bonding requirement: Fuel Carriers don't need to hold a bond.
Fuel Carriers transporting via truck don't need to register as a Fuel Tax Fuel Carrier now.
|Current license||Future license||Bonding requirements|
|Motor Fuel Supplier
Special Fuel Supplier
|Supplier||$5,000 to $100,000|
Motor Fuel Importer
Special Fuel Importer
Motor Fuel Exporter
Special Fuel Exporter
Motor Fuel Distributor
Special Fuel Distributor
|Distributor||$5,000 to $100,000|
|Aircraft Distributor||$5,000 to $100,000|
|Motor Fuel Blender
Special Fuel Blender
|Blender||$5,000 to $100,000|
|(Not previously required)||Terminal Operators||$0|
|(Not previously required)||Fuel Carriers||$0|
All forms have a new layout. The tax returns allow you to report 3 fuel types: Motor, Special, and Dyed Special Fuel on one return. The new tax returns will be easy to understand and fill out and are more consistent with forms from other jurisdictions.
What you must do
If you are a licensed fuel tax customer, your license expired on June 30, 2016. You'll need to apply and provide new bonds by July 1, 2016. All licensees must relicense under the new license categories and provide updated bonds to continue operations in Washington.