The Washington State Legislature is considering passage of SB 5974 which would add $0.06 per gallon to the cost of a gallon of gas in Oregon. 90 percent of Oregon's gas comes from refineries in Washington State. Oregon does not have any refineries.

This effectively means that the maximum MVFT imposed on fuel exported from the state would be $0.06 per gallon. However, the portion of the exported fuel that is destined for a state with a MFVT rate higher than Washington would receive a full credit and would not be subject to the $0.06 per gallon MVFT exported fuel rate.

Representative Shelly Boshart Davis (R-Albany) and Representative David Brock Smith (R-Port Orford) testified during the Washington State Legislature’s House Transportation Committee.

The two Oregon legislators spoke in opposition to an “exported fuel tax” proposal from Washington Democrats to levy a new tax on 90 percent of Oregon’s transportation fuel.

“This is an offensive proposal that would force Oregonians to pay for Washington’s infrastructure projects,” said Rep. Boshart Davis. “I cannot stand by and watch as the hardworking people of Oregon are hit with an unfair and unjust tax with zero representation. Oregon has its own infrastructure needs, we should not and will not pay for Washington’s.”

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“This effort really highlights poor policymaking in Washington,” added Rep. Brock Smith. “The Washington Legislature set goals and approved transportation projects they couldn’t afford. Instead of doing a better job with writing public policy, they’re going to ask my residents to pay for their roads when they have never nor will ever use them.”

Some analysts have seen this move by Washington state as retaliation for Oregon moving to toll roads that Washington residents use -- Interstates 5 and 205. The revenue from these tolls is not planned to be used to reduce congestion on these roads.


--Staff Reports

Post Date: 2022-02-18 06:33:25

Last Update: 2022-02-17 21:51:05