Comments on: On Ferries, We’ve Had this Conversation Before http://pugetsoundblogs.com/kitsap-caucus/2009/02/17/on-ferries-weve-had-this-conversation-before/ A blog about politics and government in Kitsap County as well as Washington state political news as it relates to Kitsap County. Tue, 16 Mar 2010 16:20:06 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Sharon O'Hara http://pugetsoundblogs.com/kitsap-caucus/2009/02/17/on-ferries-weve-had-this-conversation-before/comment-page-1/#comment-12989 Sharon O'Hara Thu, 19 Feb 2009 03:11:22 +0000 http://pugetsoundblogs.com/kitsap-caucus/?p=1727#comment-12989 Bob., I completely misunderstood. Thanks for taking the time to explain...I appreciate it. Sharon O'Hara Bob., I completely misunderstood. Thanks for taking the time to explain…I appreciate it.
Sharon O’Hara

]]> By: Bob Meadows http://pugetsoundblogs.com/kitsap-caucus/2009/02/17/on-ferries-weve-had-this-conversation-before/comment-page-1/#comment-12988 Bob Meadows Thu, 19 Feb 2009 00:33:37 +0000 http://pugetsoundblogs.com/kitsap-caucus/?p=1727#comment-12988 Sharon, I'm not sure, but I think you misunderstand what happens when the ferry system purchases fuel to run the state ferries. Neither the "motor vehicle fuel tax" nor the "special fuel tax" applies. So far, so good -- all the fares paid by ferry riders are still available to pay to operate the ferries. Now, watch closely: The retail sales/use tax DOES apply to those fuel purchases, and the revenue from that tax goes to the state, county and city general funds. The bottom line is that fare revenue is used for things other than operating the ferries. The higher the cost of fuel, the more revenue gets taken by the retail sales/use tax and then put into the general fund where it is not used to operate the ferries. The state ferries are the only public transit system in this state that pays the retail sales/use tax on its fuel purchases. The state ferries are being used as a "cash cow" by the state and the county/city where the fuel purchases are made. The ferry riders are providing the money to pay this tax when they pay to ride the ferries. Bus riders don't. Trolley riders don't. Passenger-only ferry riders don't. No one else does. Why take money from the ferry system in this way? It's only $4 million or so each year at today's fuel prices, but why is it taken at all from the ferries? Sharon, I’m not sure, but I think you misunderstand what happens when the ferry system purchases fuel to run the state ferries. Neither the “motor vehicle fuel tax” nor the “special fuel tax” applies. So far, so good — all the fares paid by ferry riders are still available to pay to operate the ferries. Now, watch closely: The retail sales/use tax DOES apply to those fuel purchases, and the revenue from that tax goes to the state, county and city general funds. The bottom line is that fare revenue is used for things other than operating the ferries. The higher the cost of fuel, the more revenue gets taken by the retail sales/use tax and then put into the general fund where it is not used to operate the ferries.

The state ferries are the only public transit system in this state that pays the retail sales/use tax on its fuel purchases.

The state ferries are being used as a “cash cow” by the state and the county/city where the fuel purchases are made. The ferry riders are providing the money to pay this tax when they pay to ride the ferries. Bus riders don’t. Trolley riders don’t. Passenger-only ferry riders don’t. No one else does.

Why take money from the ferry system in this way?

It’s only $4 million or so each year at today’s fuel prices, but why is it taken at all from the ferries?

]]> By: Sharon O'Hara http://pugetsoundblogs.com/kitsap-caucus/2009/02/17/on-ferries-weve-had-this-conversation-before/comment-page-1/#comment-12987 Sharon O'Hara Wed, 18 Feb 2009 23:55:12 +0000 http://pugetsoundblogs.com/kitsap-caucus/?p=1727#comment-12987 How stupid! What does retail sales/use tax have to do with the ferry system? Business taxes should BENEFIT businesses to strengthen our economy - not let the ferry system steal the funds, of any amount. No amount of money should be 'skimmed' ! Sharon O'Hara How stupid! What does retail sales/use tax have to do with the ferry system?

Business taxes should BENEFIT businesses to strengthen our economy – not let the ferry system steal the funds, of any amount.
No amount of money should be ’skimmed’ !
Sharon O’Hara

]]> By: Bob Meadows http://pugetsoundblogs.com/kitsap-caucus/2009/02/17/on-ferries-weve-had-this-conversation-before/comment-page-1/#comment-12981 Bob Meadows Wed, 18 Feb 2009 02:46:08 +0000 http://pugetsoundblogs.com/kitsap-caucus/?p=1727#comment-12981 This bill got nowhere back in 2005-06: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1948&year=2005 How come? Why does the retail sales/use tax (about 8.9% of the purchase price in most counties of this state) apply to fuel purchased by the state ferry system? That takes more than $4 million a year away from the revenue that comes from riders' fares and puts those dollars into the state and local general funds for use on other things. Sure, it's not a lot compared to the total operating and capital expenditures for the ferries, but why should anything be skimmed off the fare revenues and put into the general funds? This bill got nowhere back in 2005-06:
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1948&year=2005

How come?

Why does the retail sales/use tax (about 8.9% of the purchase price in most counties of this state) apply to fuel purchased by the state ferry system?

That takes more than $4 million a year away from the revenue that comes from riders’ fares and puts those dollars into the state and local general funds for use on other things.

Sure, it’s not a lot compared to the total operating and capital expenditures for the ferries, but why should anything be skimmed off the fare revenues and put into the general funds?

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