Fuel Tax Frustration Pt 1

Fuel Tax Frustration Pt 1

Bob Larson
Bob Larson
From the Ag Information Network, I’m Bob Larson. Since the beginning of the year, ag producers have been charged a Climate Commitment Act fuel tax they are, by law, exempt from … some estimate as much as 40-cents per gallon.

The Washington Policy Center’s Ag Research Director, Pam Lewison says, the ag community is, once again, finding our lawmaker’s disregard for agriculture frustrating …

LEWISON … “I think there is always something to be frustrated about coming out of Olympia, but I think this one in particular, what makes it so egregious is that it shouldn’t be happening at all.”

But hey, it’s just money, right? …

LEWISON … “Now, we’re in a position where, in the ag community in particular, we’re having to argue for a fix that is actually functional in the real world. Because aside from making your bulk purchase, people typically make that purchase with their operating loans.”

Lewison says, it just keeps adding up …

LEWISON … “I’ve been told recently that the average operating loan interest rate for farms right now is hovering at right around 7%. So, you know, if you look at it in a compounded fashion, not only are you being invoiced for this bulk fuel purchase, you are paying both an illegal tax on your fuel purchase and 7% interest as well.”

Tune in tomorrow for more on the fuel tax exemption the Department of Ecology doesn’t seem to be too concerned about.

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