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Edit: Almost forgot. AUTO represents the INDEPENDANT gas dealers not the oil companies or their stores and is at the top their most disliked list.




To: All AUTO Members


Re: Press release sent statewide today to media contacts and to all members of the WA Legislature


For Immediate Release- January 10, 2012

As the public is asked to pay tolls and increased taxes, the Supreme Court considers highway tax “refunds” to tribes

On January 10, 2011 Governor Gregoire addressed the new session of the Legislature and suggested the public be asked to pay an increase in the sales tax. In addition to the recently imposed tolls on 520, she requested the Legislature to ask the public to pay an increase in gas taxes, tolls, and other fees to pay for other new highway and transportation projects.

This Thursday, January 12th at 1:30 in the Temple of Justice in Olympia, the Washington State Supreme Court will consider a constitutional challenge to Governor Christine Gregoire’s authority to give millions of dollars in state highway funds to numerous Washington tribes while simultaneously advocating for more highway revenue from Washington citizens.


The controversy originated from a long running dispute between the state and the tribes over collection of gas taxes at tribal operated stations. A ruling by a judge in 2006 prohibited the state from collecting gas taxes at the pumps on reservations. In response, the Legislature passed a bill the next session that moved the collection of the tax to wholesalers off the reservations. Since the US Supreme Court had just ruled that states could collect the tax off the reservation from any purchaser, regardless of tribal status, tribes no longer had any claim to exemption from the tax.


Facing pressure from the tribes and Governor Gregoire, legislators included a provision in the 2007 legislation that granted the Governor vaguely-worded authority to enter into “compacts” with the tribes to resolve any further disputes. Even though it was clear by the time the bill passed that the tribes were not exempt from gas taxes under any state law or federal treaty and the tribes were not actually paying the gas taxes, the Governor quickly used the authority in the bill to negotiate compacts in closed-door meetings with tribal representatives.

Since 2007, the Department of Licensing has given over $90 million in state gas tax proceeds as “refunds” to Tribes, who by and large do not pay the taxes in the first place.

The Governor agreed to pay the tribes approximately 28 cents per gallon on every gallon sold by tribal stations. The money is paid from the motor fuel fund that holds the gas taxes paid by the citizens of the state. The tribes promised to use the money on tribal transportation projects as required by the Washington Constitution, but the compacts made it clear once the check goes into the tribes’ bank accounts, no accountability, oversight or public transparency will be provided.

When the tribes voluntarily identified where some of the money ended up, projects included enhancements to a tribal commentary, boat launch, stream habitat and administration offices that clearly are not in the realm of transportation. Tribal members unofficially report getting a check each year or a special discount of up to 35¢ per gallon off the pump price at tribal stations for their personal share of the proceeds out of the gas tax fund.


AUTO, a nonprofit organization representing motor fuel marketers, filed a suit questioning whether the Governor exceeded her authority with respect to the compacts. First, the 18th Amendment to the state Constitution requires all gas tax proceeds to be used exclusively on public roads, yet the tribes have been using the money for other purposes. The suit further objected to the Governor paying out millions from the treasury without any appropriation by the legislative branch and while doing so, granting the tribes confidentiality that blocks the public from knowing who got the public funds or how such funds were used.

Attorney General Rob McKenna filed a motion to dismiss the suit on the grounds that court rules require AUTO to name the tribes as parties. However, if the suit does name the tribes, he argued it should still be dismissed because tribes have sovereign immunity from and may not be sued.

Under McKenna’s theory, Governor Gregoire has the power to deed the Capitol Building and the entire state treasury to a tribe and no citizen in the state would have the right to seek judicial review of the transfer of such public assets.

The Supreme Court’s consideration of whether checks and balances still apply to the Governor’s giveaway of state highway funds to tribes stands in sharp contrast to the recent imposition of tolls on Highway 520. The same applies today in Olympia as elected officials in Olympia begin asking the public to pay yet another statewide increases in motor fuel taxes, vehicle license tabs, and other fees needed in part to recover the payments being made to the tribal station operators.


“The Governor and elected officials in Olympia need to stop giving away over $30 million of our gas taxes each year before it starts asking motorists to pay expensive tolls and even more at the pump and license window.” -Tim Hamilton

The Supreme Court arguments will be available for viewing either on a live webcast or at a later time on TVW by going to: http://www.tvw.org/index.php?option=com_tvwliveplayer&eventID=2012010008C


Contact:

Tim Hamilton
Executive Director
Automotive United Trades Organization (AUTO)
Office: 360.495.4941 Cell: 360.490.1077

AUTO is a non-profit trade association that represents small businesses that operate and supply convenience stores, carwashes, and truck stops in WA (http://www.autowa.org)