Gov. Inslee stands firm on gas tax despite complaints by west coast governors
OLYMPIA, Wash. - Gov. Inslee is not backing down from an excise tax that would be levied against importers of gasoline produced in Washington, despite complaints by the Governors of Alaska, Idaho and Oregon.
A feud has been brewing ever since the other states caught wind of Inslee’s proposal to levy a six-cents per gallon tax on fuel refined in Washington and imported to states with lower state gas taxes than Washington’s.
As proposed, the tax paid by out-of-state consumers would generate an estimated $2 billion for Washington state transportation projects, such as fixing highway and bridges, building new ferries and repairs of the aging I-5 bridge over the Columbia River between Washington and Oregon.
Currently, the Washington state gas tax is 49.4 cents. Any importer of fuel refined in Washington that operates in state with a lower state gas tax will have to pay tax.
That would include buys in Oregon, where the state gas tax is 38.5 cents a gallon, and Idaho where it’s 33 cents a gallon and Alaska where it’s a very low 8.95 cents a gallon.
"In terms of fairness, it's only appropriate since we produce the fuels for their use that they support our climate activities and our overall activities in the package," says Democratic House Transportation Committee Chairperson Jake Fey.
The logic being that Washington state absorbs the high cost of carbon tradeoffs because the refineries generate air pollutants.
Democratic lawmakers, as does the Governor, believe ‘it’s a fair’ trade for buyers to Washington gas to pay for those off-sets.
But in Alaska, two bills have been submitted by Republican State House Representative Kevin McCabe in retaliation.
Proposed tax on WA fuel exports angers neighboring states
Three states that would be affected by a proposed 6-cent per gallon tax on fuel exported from Washington state are pushing back on the plan, and threatening to retaliate if it is signed into law.
One would impose a 6-cent per pound tax on salmon and other fish caught in Alaska waters and offload by the fishing vessels at Alaska docks.
Another tax that would be assessed would be based on the length of non-Alaskan fishing boats tying up to those docks.
"Frankly, I’m tired of being thought of as a Washington colony," said McCabe. "Those villages, those towns that import fuel from Washington, that get a barge every summer, six cents a gallon is a big nut to crack."
"I’m tired of them depending on us and taxing us for their needs and ignoring ours," he told Alaska state lawmakers when he announced his bills.
"In Idaho, Gov. Brad Little called the tax unfair in a tweet and sent a letter to Inslee calling the tax proposal "dangerous legislation."
In Oregon, Democratic Gov. Kate Brown called the tax unaccepted and tweeted, "Yes, you read that right: Washington wants to tax Oregonians at the pump for their transportation costs."
Last Friday, Gov. Inslee spoke with Gov. Brown and expressed his support for the tax, according to an Inslee spokesperson. It’s unclear if he’s spoken with the Governors of Idaho and Alaska.
"Washington produces fuels that benefit communities in other states, and Washingtonians bear the climate impacts of that fuel production" Inslee’s Deputy Communications Director, Mike Faulk, told FOX 13 News. "It’s not unreasonable to share the social cost of carbon with those who benefit from our fuel production."
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