To:  AUTO members & Others

Re:  Washington Policy Center releases study on tribal motor fuel compacts

The prestigious Washington Policy Center has released an in-depth study on the impacts of the motor fuel compacts inked between Governor Gregoire and the tribes operating retail gasoline outlets in WA.  KOMO television out of Seattle is expected to feature an interview with the author tonight.  Other ABC affiliates around the state will probably do so as well.

The results of the study will not surprise the unfortunate dealers stuck with a tribal station nearby selling for under the typical costs.  Some of the findings include:
 
 •  In one example, a tribal station is estimated to have sold fuel at a loss of 2.5 cents per gallon.
 
•  The compacts allow state gas taxes to be used for non-highway purposes, subsidizing general tribal services.
 
•  Under the compacts, details of the tribal audits that are required to ensure compliance are kept secret from the public and state DOL officials.
 
•  The compacts allow tribes to undercut private fuel station operators, give away needed revenue for roads, harm taxpayers by allowing gas tax revenue to be spent on non-highway purposes, and hurt non-tribal businesses by creating an unfair playing field among fuel station operators.

This study is truly remarkable.  Seldom do we find that economists and analysts researching topics regarding motor fuel retailing will invest the time and resources to understand how motor fuels are sold.  I strongly recommend all marketers to review the easy-to-read study report at http://www.washingtonpolicy.org/publications/brief/state-gives-away-gas-taxes-indian-tribes  Its a real eye-opener.
Respectfully,

Tim Hamilton
Executive Director