OIL SPILL TAX

82.23B.030 SECONDARY TRANSPORTATION

Description: This exemption states that the oil spill tax is intended to apply only to the initial off-loading of crude oil or petroleum products in the state. Subsequent transportation and off-loading of the same products is not subject to the tax.

Purpose: To restrict the tax to the first possession or taxable event within the state.

Category/Year Enacted: Not intended in the tax base; 1991.

Primary Beneficiaries: Washington refiners and manufacturers.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 200 200 200 200
Local taxes - - - - - - - -

If the exemption were repealed, would the estimated revenue be realized? Unlikely.

82.23B.040 CREDIT FOR EXPORTED PETROLEUM PRODUCTS

Description: A credit against the oil spill tax is allowed for any crude oil or petroleum products off-loaded at a marine terminal which are subsequently exported from or sold for export from the state.

Purpose: Only products to be consumed within the state are intended to be taxed.

Category/Year Enacted: Not intended in the tax base; 1991.

Primary Beneficiaries: Washington exporters of crude oil or petroleum products.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 3,086 3,133 3,180 3,277
Local taxes - - - - - - - -

If the exemption were repealed, would the estimated revenue be realized? Unlikely; it is presumed that the intention of the tax is to apply only to products that are both off-loaded in the state and used within Washington.

82.23B.045 CREDIT FOR MANUFACTURING OR NONFUEL USE

Description: Credits or refunds against oil spill tax previously paid are allowed for any crude oil or petroleum products which are not ultimately used as fuel or which are used in a manufacturing process.

Purpose: To assure that the tax applies only to petroleum that is ultimately used as fuel.

Category/Year Enacted: Not intended in the tax base; 1991.

Primary Beneficiaries: Washington consumers and manufacturers of crude oil and petroleum products.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 130 130 130 130
Local taxes - - - - - - - -

If the exemption were repealed, would the estimated revenue be realized? Yes.