Imposing transportation taxes and fees on compressed natural gas and liquefied natural gas used for transportation purposes. (REVISED FOR ENGROSSED: Concerning compressed natural gas and liquefied natural gas used for transportation purposes. )
Summary
Imposes state and local business and occupation taxes on the sale of natural gas used as a transportation fuel in lieu of state and local utility taxes.
Allows a natural gas company to claim the machinery and equipment (M&E) sales and use tax exemption for the M&E used in the liquefaction or compression of natural gas used as a transportation fuel from July 1, 2017 through July 1, 2028.
Exempts consumers from state and local brokered natural gas use taxes for natural gas used as a transportation fuel.
Provides a detailed performance statement to assess whether the following public policy objectives have been achieved: promoting job creation and positive economic development; lowering carbon dioxide, sulfur dioxide, nitrogen dioxide, and particulate emissions; and securing optimal LNG pricing for the Washington ferry system and other public entities.
Requires that the Washington ferry system and other public entities receive equivalent LNG fuel pricing from a gas distribution business selling LNG for transportation use.
Narrows the exemption for sales taxes on LNG used outside the state as a marine vessel transportation fuel by 10 percent and completely eliminates the exemption for LNG on July 1, 2028.
From the Engrossed Substitute House Bill Report (ESSB 6440), written by the Legislature's nonpartisan staff. Read the full report ↗