Aircraft fuel tax proceeds

AN ACT Relating to directing the deposit of the proceeds from 1
taxes on aircraft fuel to the aeronautics account; and amending RCW 2
82.21.030, 82.23B.020, 82.23A.020, and 82.42.090. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.21.030 and 2023 c 68 s 3 are each amended to read 5
as follows: 6
(1)(a) A tax is imposed on the privilege of possession of 7
hazardous substances in this state. Except as provided in (b) of this 8
subsection, the rate of the tax is ((seven-tenths of one )) 0.7 9
percent multiplied by the wholesale value of the substance. Moneys 10
collected under this subsection (1)(a) must be deposited in the model 11
toxics control capital account. 12
(b) For the fiscal year beginning July 1, 2019, the rate of the 13
tax on petroleum products is $1.09 per barrel. For subsequent fiscal 14
years, the rate of tax on petroleum products is determined pursuant 15
to subsection (3) of this section. The tax collected under this 16
subsection (1)(b) on petroleum products must be deposited as follows, 17
after first depositing the tax as provided in (c) and (d) of this 18
subsection, except that during the 2021-2023 biennium the deposit as 19
provided in (c) of this subsection may be prorated equally across 20
each month of the biennium: 21
S-3595.1
SENATE BILL 5898
State of Washington 69th Legislature 2026 Regular Session
By Senators Boehnke, Christian, Cleveland, and Dozier
Prefiled 12/16/25. Read first time 01/12/26. Referred to Committee
on Ways & Means.
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(i) Sixty percent to the model toxics control operating account 1
created under RCW 70A.305.180; 2
(ii) Twenty-five percent to the model toxics control capital 3
account created under RCW 70A.305.190; and 4
(iii) Fifteen percent to the model toxics control stormwater 5
account created under RCW 70A.305.200. 6
(c) Until the beginning of the ensuing biennium after the 7
enactment of an additive transportation funding act, $50,000,000 per 8
biennium to the motor vehicle fund to be used exclusively for 9
transportation stormwater activities and projects. For purposes of 10
this subsection, "additive transportation funding act" means an act 11
enacted after June 30, 2023, in which the combined total of new 12
revenues deposited into the motor vehicle fund and the multimodal 13
transportation account exceed $2,000,000,000 per biennium 14
attributable solely to an increase in revenue from the enactment of 15
the act. 16
(d) The proceeds from the imposition of the tax pursuant to (b) 17
of this subsection (1) on aircraft fuel, as defined in RCW 82.42.010, 18
must be deposited into the aeronautics account created in RCW 19
82.42.090.20
(e) The department must compile a list of petroleum products that 21
are not easily measured on a per barrel basis. Petroleum products 22
identified on the list are subject to the rate under (a) of this 23
subsection in lieu of the volumetric rate under (b) of this 24
subsection. The list will be made in a form and manner prescribed by 25
the department and must be made available on the department's 26
internet website. In compiling the list, the department may accept 27
technical assistance from persons that sell, market, or distribute 28
petroleum products and consider any other resource the department 29
finds useful in compiling the list. 30
(2) Chapter 82.32 RCW applies to the tax imposed in this chapter. 31
The tax due dates, reporting periods, and return requirements 32
applicable to chapter 82.04 RCW apply equally to the tax imposed in 33
this chapter. 34
(3) For fiscal years beginning on or after July 1, 2020, the rate 35
of tax on petroleum products for the previous fiscal year must be 36
adjusted to reflect the percentage change in the implicit price 37
deflator for nonresidential structures as published by the United 38
States department of commerce, bureau of economic analysis for the 39
most recent 12-month period ending December 31st of the prior year.40
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Sec. 2. RCW 82.23B.020 and 2018 c 262 s 103 are each amended to 1
read as follows: 2
(1) An oil spill response tax is imposed on the privilege of 3
receiving: (a) Crude oil or petroleum products at a marine terminal 4
within this state from a waterborne vessel or barge operating on the 5
navigable waters of this state; or (b) crude oil or petroleum 6
products at a bulk oil terminal within this state from a tank car or 7
pipeline. The tax imposed in this section is levied upon the owner of 8
the crude oil or petroleum products immediately after receipt of the 9
same into the storage tanks of a marine or bulk oil terminal from a 10
tank car, pipeline, waterborne vessel, or barge at the rate of one 11
cent per barrel of crude oil or petroleum product received.12
(2) In addition to the tax imposed in subsection (1) of this 13
section, an oil spill administration tax is imposed on the privilege 14
of receiving: (a) Crude oil or petroleum products at a marine 15
terminal within this state from a waterborne vessel or barge 16
operating on the navigable waters of this state; or (b) crude oil or 17
petroleum products at a bulk oil terminal within this state from a 18
tank car or pipeline. The tax imposed in this section is levied upon 19
the owner of the crude oil or petroleum products immediately after 20
receipt of the same into the storage tanks of a marine or bulk oil 21
terminal from a tank car, pipeline, waterborne vessel, or barge at 22
the rate of four cents per barrel of crude oil or petroleum product.23
(3) The taxes imposed by this chapter must be collected by the 24
marine or bulk oil terminal operator from the taxpayer. If any person 25
charged with collecting the taxes fails to bill the taxpayer for the 26
taxes, or in the alternative has not notified the taxpayer in writing 27
of the taxes imposed, or having collected the taxes, fails to pay 28
them to the department in the manner prescribed by this chapter, 29
whether such failure is the result of the person's own acts or the 30
result of acts or conditions beyond the person's control, he or she, 31
nevertheless, is personally liable to the state for the amount of the 32
taxes. Payment of the taxes by the owner to a marine or bulk oil 33
terminal operator relieves the owner from further liability for the 34
taxes. 35
(4) Taxes collected under this chapter must be held in trust 36
until paid to the department. Any person collecting the taxes who 37
appropriates or converts the taxes collected is guilty of a gross 38
misdemeanor if the money required to be collected is not available 39
for payment on the date payment is due. The taxes required by this 40
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chapter to be collected must be stated separately from other charges 1
made by the marine or bulk oil terminal operator in any invoice or 2
other statement of account provided to the taxpayer.3
(5) If a taxpayer fails to pay the taxes imposed by this chapter 4
to the person charged with collection of the taxes and the person 5
charged with collection fails to pay the taxes to the department, the 6
department may, in its discretion, proceed directly against the 7
taxpayer for collection of the taxes. 8
(6) The taxes are due from the marine or bulk oil terminal 9
operator, along with reports and returns on forms prescribed by the 10
department, within ((twenty-five)) 25 days after the end of the month 11
in which the taxable activity occurs. 12
(7) The amount of taxes, until paid by the taxpayer to the marine 13
or bulk oil terminal operator or to the department, constitutes a 14
debt from the taxpayer to the marine or bulk oil terminal operator. 15
Any person required to collect the taxes under this chapter who, with 16
intent to violate the provisions of this chapter, fails or refuses to 17
do so as required and any taxpayer who refuses to pay any taxes due 18
under this chapter, is guilty of a misdemeanor as provided in chapter 19
9A.20 RCW. 20
(8) Upon prior approval of the department, the taxpayer may pay 21
the taxes imposed by this chapter directly to the department. The 22
department must give its approval for direct payment under this 23
section whenever it appears, in the department's judgment, that 24
direct payment will enhance the administration of the taxes imposed 25
under this chapter. The department must provide by rule for the 26
issuance of a direct payment certificate to any taxpayer qualifying 27
for direct payment of the taxes. Good faith acceptance of a direct 28
payment certificate by a terminal operator relieves the marine or 29
bulk oil terminal operator from any liability for the collection or 30
payment of the taxes imposed under this chapter. 31
(9)(a) ((All)) Except as provided in (c) of this subsection, all 32
receipts from the tax imposed in subsection (1) of this section must 33
be deposited into the state oil spill response account.34
(b) Beginning in fiscal year 2019 and each fiscal year 35
thereafter, the first ((two hundred thousand dollars )) $200,000 of 36
receipts from the tax imposed in subsection (2) of this section must 37
be deposited into the military department active state service 38
account created in RCW 38.40.220, and the remainder of the receipts 39
from the tax imposed in subsection (2) of this section must be 40
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deposited into the oil spill prevention account or the aeronautics 1
account, as provided in this subsection (9). 2
(c) The receipts from the tax imposed in subsection (1) of this 3
section on aircraft fuel as defined in RCW 82.42.010, must be 4
deposited into the aeronautics account created in RCW 82.42.090.5
(10) Within ((forty-five)) 45 days after the end of each calendar 6
quarter, the office of financial management must determine the 7
balance of the oil spill response account as of the last day of that 8
calendar quarter. Balance determinations by the office of financial 9
management under this section are final and may not be used to 10
challenge the validity of any tax imposed under this chapter. The 11
office of financial management must promptly notify the departments 12
of revenue and ecology of the account balance once a determination is 13
made. For each subsequent calendar quarter, the tax imposed by 14
subsection (1) of this section shall be imposed during the entire 15
calendar quarter unless: 16
(a) Tax was imposed under subsection (1) of this section during 17
the immediately preceding calendar quarter, and the most recent 18
quarterly balance is more than ((nine million dollars )) $9,000,000; 19
or 20
(b) Tax was not imposed under subsection (1) of this section 21
during the immediately preceding calendar quarter, and the most 22
recent quarterly balance is more than ((eight million dollars )) 23
$8,000,000. 24
Sec. 3. RCW 82.23A.020 and 2023 c 170 s 17 are each amended to 25
read as follows: 26
(1) A tax is imposed on the privilege of possession of petroleum 27
products in this state. The rate of the tax shall be ((thirty one-28
hundredths of one)) 0.31 percent multiplied by the wholesale value of 29
the petroleum product. For purposes of determining the tax imposed 30
under this section for petroleum products introduced at the rack, the 31
wholesale value is determined when the petroleum product is removed 32
at the rack unless the removal is to an exporter licensed under 33
chapter 82.38 RCW for direct delivery to a destination outside of the 34
state. For all other cases, the wholesale value is determined upon 35
the first nonbulk possession in the state. 36
(2)(a) Except as identified in RCW 70A.345.130, or provided in 37
(b) of this subsection, moneys collected under this chapter shall be 38
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deposited in the pollution liability insurance program trust account 1
under RCW 70A.325.020. 2
(b) Moneys collected under this chapter due to the imposition of 3
the tax in subsection (1) of this section on aircraft fuel, as 4
defined in RCW 82.42.010, must be deposited into the aeronautics 5
account created in RCW 82.42.090.6
(3) Chapter 82.32 RCW applies to the tax imposed in this chapter. 7
The tax due dates, reporting periods, and return requirements 8
applicable to chapter 82.04 RCW apply equally to the tax imposed in 9
this chapter. 10
(4) Within 30 days after the end of each calendar quarter the 11
department shall determine the "quarterly balance," which shall be 12
the cash balance in the pollution liability insurance program trust 13
account as of the last day of that calendar quarter, after excluding 14
the reserves determined for that quarter under RCW 70A.325.020(2) and 15
chapter 70A.545 RCW. Balance determinations by the department under 16
this section are final and shall not be used to challenge the 17
validity of any tax imposed under this section. For each subsequent 18
calendar quarter, tax shall be imposed under this section during the 19
entire calendar quarter unless: 20
(a) Tax was imposed under this section during the immediately 21
preceding calendar quarter, and the most recent quarterly balance is 22
more than $30,000,000; or 23
(b) Tax was not imposed under this section during the immediately 24
preceding calendar quarter, and the most recent quarterly balance is 25
more than $15,000,000. 26
Sec. 4. RCW 82.42.090 and 2025 c 417 s 1304 are each amended to 27
read as follows: 28
(1) All moneys collected by the director from the aircraft fuel 29
excise tax as provided in RCW 82.42.020 shall be transmitted to the 30
state treasurer and shall be credited to the aeronautics account 31
hereby created in the state treasury. Moneys in the account may be 32
spent only after appropriation. Expenditures from the account may be 33
used only for aviation-related purposes. 34
(2) Moneys resulting from the taxes in RCW 82.21.030, 82.23A.020, 35
and 82.23B.020 on aircraft fuel must be deposited into this account.36
(3) Moneys collected from the consumer or user of aircraft fuel 37
from either the use tax imposed by RCW 82.12.020 or the retail sales 38
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tax imposed by RCW 82.08.020 shall be transmitted to the state 1
treasurer and credited to the state general fund. 2
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