Transportation budget writers in the Washington Legislature are finalizing a revenue package that proposes a 6-cent increase in the state’s gasoline tax, with plans to implement this hike by July 1.
This would mark the first increase in the gas tax since 2016, raising the state’s levy from 49.4 cents per gallon to 55.4 cents and subsequently increasing it by 2% each year.
The potential gas tax increase is expected to contribute nearly half of the estimated $3.2 billion that the new revenue package is projected to generate over the next six years.
House Transportation Committee Chair Jake Fey, D-Tacoma, expressed optimism about the bipartisan negotiations between House and Senate legislators focused on addressing soaring project costs and dwindling gas tax revenues due to the rise of more efficient vehicles.
“We’re close,” Fey stated regarding the progress made on the negotiations.
Senate Bill 5801, which encompasses the new gas tax proposition, aims to alleviate part of an estimated $1 billion shortfall over the next two years and an $8 billion gap anticipated within six years.
Lawmakers emphasize the necessity for enhanced funding to support significant highway megaprojects, the Washington State Patrol, state ferries, and the removal of culverts and obstacles impeding fish migration.
Current discussions are centered around how the generated revenue will be allocated, as both legislative chambers work to finalize a comprehensive two-year transportation plan within a budget range of $15 billion to $16 billion.
Initial revenue proposals last month revealed a striking difference in anticipated collections, with the House suggesting $4.4 billion compared to the Senate’s $3 billion.
The refined gas tax proposal reflects a compromise that is more in line with the Senate’s earlier submissions, which had garnered limited bipartisan support, approving a similar proposal 31-18 in March—three Democrats dissenting and four Republicans lending their support.
Alongside the gas tax increase, the new framework outlines additional hikes for diesel fuel taxes—3 cents per gallon in both fiscal years 2026 and 2028, with subsequent increases indexed to inflation.
Moreover, lawmakers plan to introduce taxes on vehicle sales, rental cars, luxury vehicles, private jets, and a $1 fee per attendee for venues with capacities exceeding 17,000.
One significant revenue component is expected to be $317 million through a new $30-per-ton weight fee imposed on heavy-duty trucks, with increases aligned to inflation in future years.
The proposal also anticipates generating $138 million from infractions captured by the state’s new speed cameras in work zones.
However, this latest proposal marks a departure from some more controversial ideas previously entertained in earlier legislative discussions.
Notably absent are increased fees on electric vehicle registrations, a 10% surcharge on e-bike purchases, vehicle registration fees for transit operators, and any increase in ferry fares.
Perhaps most significantly, the negotiated package discards a proposed highway use fee that would charge drivers based on their vehicle’s fuel efficiency, a concept that had been explored by Fey and other Democrats for over a decade.
Fey expressed disappointment over the omission of the road usage charge, which was eliminated late in the negotiation process due to time constraints for evaluating its implications.
Senate Transportation Committee Chair Marko Liias, D-Edmonds, explained that the charge was dropped because there was insufficient time left in the session to comprehend its potential impacts.
In addition to new tax measures, the plan includes various policy adjustments such as tolling across the entire State Route 520 corridor, mandating biodiesel fuel for state ferries, and a sales tax exemption for zero-emission buses.
However, it does not encompass additional uses for Tacoma Narrows Bridge toll revenues or enhanced enforcement of expired vehicle registration tab rules as previously proposed by the Senate.
The House Transportation Committee is expected to hear the proposal on Wednesday morning, with the legislative session set to conclude on Sunday.
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