What are the oil spill taxes?
There is an oil spill response tax and the oil spill administration tax due when you receive crude oil or petroleum products at:
- a Washington marine terminal from a waterborne vessel or barge operating on the navigable waters of Washington, or
- a Washington bulk rail terminal from a rail tank car.
How do I pay the tax?
You can pay the taxes directly to:
- the marine terminal operator or bulk terminal operator, or
- the Department of Revenue if we issued you a direct payment certificate.
You need to pay the tax monthly on the regular excise tax return.
What rate do I pay?
The rate of the oil spill administration tax is 4 cents per 42-gallon barrel.
The rate of the oil spill response tax is 1 cent per 42-gallon barrel. We impose the oil spill response tax when funds in the oil spill response account is less than $8 million. This will remain in effect until the account balance exceeds $9 million.
What are the funds used for?
The government disperses and uses the funds as follows:
- The 4 cents per barrel oil spill administration tax is deposited into the oil spill prevention account to fund oil spill prevention and preparedness programs.
- The 1 cent per barrel oil spill response tax is deposited into the oil spill response account to cover state response costs to oil spills.