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State Representative Mike Armstrong - 12th Legislative District

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FOR IMMEDIATE RELEASE

June 22, 2007

 


State petroleum groups name Armstrong 'Legislator of the Year'
Wenatchee lawmaker lauded for negotiations on fuel tax bill

Rep. Mike Armstrong has been named "2007 Legislator of the Year" by the Washington Oil Marketers Association and the Pacific Northwest Oil Heat Council for his work to change a bill that would have harmed small fuel distributors in Washington. The award was presented to Armstrong, R-Wenatchee, during the association's annual convention Thursday at the Semiahmoo Resort in Blaine.

During the 2007 session, Senate Bill 5272 was introduced in response to a federal court ruling which found that tribally-owned gas stations are exempt from the requirement to collect the state gas tax. As originally proposed, the bill would have eliminated the ability of distributors to wait and pay suppliers the fuel tax seven days before it is due to the state (also known as the "float"). It would have also removed fuel distributors' credits and deductions for uncollected taxes from retailers and/or consumers. In effect, this would have shifted the tax liability up to suppliers and off the tribal reservations. Armstrong worked to secure an amendment that would retain the distributors' credits and the float.

Association President Bob Ogan, owner of Wenatchee Petroleum, said that he "has gained a whole new respect for the work our state legislators do for us in Olympia." Ogan said he was impressed that someone would take time to dig into such a complex issue, be willing to stand up against other powerful political interests, and support small businesses throughout Washington.

"Mike's work this year saved my business from potential collapse -- all because he was willing to do what was right, not what was politically easy. We need more people like Mike in Olympia," said Ogan.

Other association members noted that Armstrong's negotiations with the House Transportation chair and Gov. Christine Gregoire prevented their businesses from losing jobs and tens of millions of dollars on the gas-tax collection issue.

"Most everyone knew it was not right to hurt these family businesses this way, but Representative Armstrong was willing to actually do something about it," said Lea Wilson, association executive director. "I applaud the House leadership for entrusting Mike Armstrong, a Republican in a Democrat-controlled House of Representatives, to be the leader on this issue. The Speaker of the House stood side-by-side with Representative Armstrong who made sure the issue was resolved without hurting anyone along the way. That is true leadership."

Under the negotiated bill which passed the Legislature, changes in statute will make sure  all gas taxes are collected by the state, and tribes may enter into compacts with the state to get appropriate refunds. The refund agreements will be negotiated between the governor and individual tribal governments.

"It's a real honor to be recognized for this work. When I first saw this bill, I knew that if it passed without some meaningful changes, it could give tribes a free ride at the great expense of hard-working businesses and families across Washington. I wanted to ensure an equitable solution for all involved," said Armstrong. "We came up with an agreement that not only addresses the concerns of the court and the tribes, but also protects the financial viability of small petroleum distributors and their employees throughout the state."

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For more information, contact: John Sattgast, Public Information Officer: (360) 786-7257
 

 
 

House Republican Communications - (360) 786-7031 * 408 John L. O'Brien Bldg. * Olympia, WA 98504-0600