The Washington Farm Bureau and the Washington Trucking Association filed a civil lawsuit against the state’s Department of Ecology for reportedly adopting regulations that eliminated diesel tax exemptions from these fuel-dependent industries. The dust-up comes when diesel prices have increased by more than 70 cents per gallon since June. Blocking the farming and trucking sectors from tax exemptions is expected to add to grocery prices and other forms of inflation.
“Ching, ching, ching. That’s more money out of my pocket. It’s more money out of everybody else’s pocket,” Washington State trucker Brad De Kok reportedly said. “I went to Oregon, came back up. I put 215 gallons in. It cost me $1,086.
De Kok indicated that he has already started raising freight rates as an independent operator. The alternative, he says, would be to go under. His plight reflects that of men and women across the country who want to hold on to the American Dream of working for themselves and earning a decent living.
Washington State levies a tax just a shade under 50 cents per gallon. So, when De Kok makes his run, he’s forced to pass along more than $100 to consumers. Given there are upwards of 3.5 million truckers in the U.S., state and federal consumption taxes have a powerful effect on retail and grocery prices.
The tax exemption flap started back in 2021 when lawmakers passed the Climate Commitment Act. The measure empowered the Department of Ecology to regulate greenhouse gas emissions in wide-reaching industries. Truckers and farmers contend the Act provides a five-year grace period for “a feasible transition.” The levies are being collected from truckers and farmers even as prices could be headed toward record highs. The plaintiffs assert that the added costs have run north of $74 million since January.
Washington Trucking Association president Sheri Call pointed out that in-state operators “are losing business to outside carriers, companies who are not subject to CCA and have opportunity and access to buy fuel out of state.”
The two organizations launched a GoFundMe campaign to cover their legal expenses. The goal of $50,000 may only be enough to get the litigation off the ground. In an effort to reclaim the diesel exemption, the groups are poised to seek a declaratory judgment. A judge can issue a ruling that hands one party the win without a protracted court fight.
Sources:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emd_epd2d_pte_nus_dpg&f=m
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