City Council opposes refinery tax hike

The 5 Council members present took turns to explain their opposition. Bill Turner suggested the tax could hurt the Anacortes Tesoro refinery, pointing out Tesoso suffered a loss last year.

Cynthia Richardson said “Adding a tax to our-of-state products could encourage customers outside Washington to purchase products from refineries in other states” rather than from Washington refiners. She called the legislation “counterproductive.”

Brad Adams, acting as Council chair, said this is just the wrong source for funds.

The bill, now before the state Senate, would hike the Model Toxics Control Act tax from .7 percent to 2 percent on refined products to pay for stormwater cleanup, but Governor Christine Gregoire is counting on 70 percent of it to fill part of the $2.8 billion state budget shortfall.

Council member Erica Pickett said the hike “would make our refined products uncompetitive with other states.”

As the Council was taking action, Mayor Dean Maxwell and officials of the 2 Anacortes refineries were on their way back from Olympia after testifying in opposition to the increase. Maxwell told the Ways and Means Committee “I think this is an unfair tax on a single industry and I don’t know what happens to Skagit County if we were to lose one of these refineries.”