I ran across this little store on the Washington Policy Center app on my Android. I felt that I needed to share. In a nutshell, Tribal gas stations are required to collect the State gas tax, but they can apply to be partially exempted, and the state will refund 75% of the tax collected back to the tribe.
Full article:http://www.washingtonpolicy.org/blog/post/new-wpc-study-washington-state-gives-away-gas-taxes-indian-tribes
Key points:
1) New tribal gas tax compacts negotiated by the governor require tribal fuel station operators to collect the state’s full gas tax rate, but then state officials give back 75%, or 28 cents per gallon, to tribes.
2) Since 2000, the number of tribal gas stations with agreements has more than tripled from an estimated 14 to 51.
3) Under the new agreements, the amount of gas taxes given to tribes has grown exponentially, from $5.31 million in 2005 to more than $28.14 million in 2010.
4) Since 2005, motorists lost more than $90.55 million in gas tax revenue to Indian tribes.
5) Tribal fuel station operators are consistently underselling regional non-tribal competitors by an average of 7 to 12 cents per gallon for unleaded fuel and 15 to 26 cents per gallon for diesel in most areas of the state.
6) Tribal station operators charge up to 11.5% less for fuel than their non-tribal competitors.
7) In one example, a tribal station is estimated to have sold fuel at a loss of 2.5 cents per gallon.
8) The compacts allow state gas taxes to be used for non-highway purposes, subsidizing general tribal services.
9) Under the compacts, details of the tribal audits that are required to ensure compliance are kept secret from the public and state DOL officials.
10) The compacts allow tribes to undercut private fuel station operators, give away needed revenue for roads, harm taxpayers by allowing gas tax revenue to be spent on non-highway purposes, and hurt non-tribal businesses by creating an unfair playing field among fuel station operators.
While I have a problem with this on several levels, like creating unfair competition by giving an advantage to one group, the key problem I have is the state violating the Constitution. Yes, I know, it’s nothing new. The Feds have been violating the US Constitution for nearly 2 centuries, as far as I can tell, why should the state be any different?
The Washington State Constitution clearly states that the gas tax is to be used ONLY for roads. Section 40 reads:
SECTION 40 HIGHWAY FUNDS. All fees collected by the State of Washington as license fees for motor vehicles and all excise taxes collected by the State of Washington on the sale, distribution or use of motor vehicle fuel and all other state revenue intended to be used for highway purposes, shall be paid into the state treasury and placed in a special fund to be used exclusively for highway purposes. Such highway purposes shall be construed to include the following:
(a) The necessary operating, engineering and legal expenses connected with the administration of public highways, county roads and city streets;
(b) The construction, reconstruction, maintenance, repair, and betterment of public highways, county roads, bridges and city streets; including the cost and expense of (1) acquisition of rights-of-way, (2) installing, maintaining and operating traffic signs and signal lights, (3) policing by the state of public highways, (4) operation of movable span bridges, (5) operation of ferries which are a part of any public highway, county road, or city street;
(c) The payment or refunding of any obligation of the State of Washington, or any political subdivision thereof, for which any of the revenues described in section 1 may have been legally pledged prior to the effective date of this act;
(d) Refunds authorized by law for taxes paid on motor vehicle fuels;
(e) The cost of collection of any revenues described in this section:
Provided, That this section shall not be construed to include revenue from general or special taxes or excises not levied primarily for highway purposes, or apply to vehicle operator's license fees or any excise tax imposed on motor vehicles or the use thereof in lieu of a property tax thereon, or fees for certificates of ownership of motor vehicles. [AMENDMENT 18, 1943 House Joint Resolution No. 4, p 938. Approved November, 1944.]
(link: http://www.leg.wa.gov/lawsandagencyrules/pages/constitution.aspx)
How does this deal with the tribes stack up to the legal requirement in what is literally our states defining document and basis for all state laws? Clearly, it’s not being used for highway maintenance. If they wanted to make this deal, which should never have been made, they could have gotten around this section by not having the tribes collect the tax, or only collect a part of it. The section clearly states all taxes COLLECTED should be set aside in a special fund. If it’s not collected, that doesn’t count, right?
Most likely that’s wrong, too. I haven’t looked into the laws passed on how, when, and where to collect the gas tax, but I’d put forth a theory that it’s written in such a way as to make that illegal as well.
This is a clear violation of the Constitution of this state. How does it feel to know that your highway funds are being given to privileged groups to create an unfair business advantage, while at the same time depriving you of road maintenance that you were told those funds would support? Don’t let them continue to get away with breaking the laws they pledge to support and defend. Enough is enough and 100 times enough is way overboard.