ABERDEEN, Wash. — A statewide coalition of service stations has filed a lawsuit against Gov. Chris Gregoire, the Department of Licensing and the state to challenge fuel tax reimbursement agreements with regional American Indian tribes.

The nonprofit Automotive United Trades Organization, based in McCleary, filed a lawsuit in Grays Harbor Superior Court earlier this month seeking a court order to halt tax reimbursements to tribal service stations based on an agreement Gregoire signed in 2007.

AUTO Executive Director Tim Hamilton said he and others representing the approximately 300 service stations in the lawsuit believe the state has improperly paid more than $35 million to tribal service stations, undercutting competition.

“It just guts us,” he said.

Hamilton explained the refund agreements pay tribal stations back 75 percent of state taxes collected on fuel at tribal stations, which amounts to about 28 cents a gallon. He contends some of this money allows tribal stations to operate at lower costs, pricing out non-tribal stations. Full story.

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