Washington state lawmakers finalized a $15.5 billion transportation funding deal in the waning hours of this year’s regular session. The deal includes no shortage of new and increased taxes and fees.
The plan sent to Gov. Bob Ferguson covers operating costs and capital projects. The proposal appropriates funding for construction, preservation, operations and multimodal projects across the state. Funding is also included for the Washington State Patrol and the Washington State Department of Transportation.
The two-year budget package will provide revenue to maintain and improve the state’s roads, bridges, ferries and transit systems.
Senate Transportation Committee Chair Marko Lias said Washingtonians expected lawmakers to deliver on promises to finish long-overdue projects and repair aging infrastructure.
“This is a sensible, bipartisan solution that balances multiple funding tools while keeping the system running smoothly,” Lias, D-Edmonds, said in prepared remarks.
Fuel taxes
The lead transportation funding bill, SB5801, is expected to raise $3.2 billion over six years through a mix of new and adjusted revenue sources.
The most notable change is a 6-cent increase in the state’s fuel excise tax. The gas and diesel rates have remained unchanged since 2016, when a 4.9-cent bump raised the excise tax on both to 49.4 cents.
On July 1, the gas tax will increase by 6 cents to 55.4 cents. The diesel tax will increase by 3 cents on July 1, 2026, and again in July 2027 to reach 55.4 cents.
An inflationary adjustment is included. The inflation-based increase for gas takes effect in 2026. The adjustment for diesel will start in 2028.
Local governments will receive 5% of the new fuel tax revenue.
License and weight fees
Motorists and truck drivers soon will also be responsible for paying higher license fees based on weight.
Supporters have said the increased weight fees are needed “to ensure those causing more wear and tear on roadways contribute their fair share.”
Removed from the transportation funding bill, however, was a Senate-approved proposal to increase annual registration fees for electric and hybrid vehicles.
Commercial vehicles weighing 80,000 pounds will see the $1,740 annual fee raised by $90 to $1,830.
License fees for personal and commercial vehicles will also be adjusted annually by increasing the fee by 2%.
Passenger vehicle weight fees will increase between $10 and $24. Truck weight fees will be standardized to $30 per ton.
Additionally, the motor vehicle sales tax will be raised from 0.3% to 0.5%.
More taxes and fees
A new luxury tax will be collected on certain vehicles.
An 8% tax will be collected on motor homes over $100,000. A 10% tax will be charged on aircraft exceeding $500,000.
Watercraft were removed from the vehicle tax proposal. Instead, affected vessels will be subject to a new 0.5% tax.
Sen. Curtis King, R-Yakima, said he helped to create a “no-nonsense budget” to keep the state’s transportation system moving forward.
“Raising fees and taxes is not something we take lightly, but we determined it was the only solution to address our state’s transportation challenges,” King stated.
Ticket cameras
Another revenue enhancement included in the transportation-funding deal will come from work zone speed cameras.
A 2023 law permitted the use of speed cameras in work zones. The state’s first work zone speed camera program launched April 16 on Interstate 5 near Joint Base Lewis-McChord.
First-time offenders do not pay a fine. Repeat offenders are billed $248.
Citations can be issued only when workers are present.
Beginning in July, first-time offenders will no longer get off with a warning. Instead, they will have to pay a $125 fine.
House Transportation Committee Chair Jake Fey, D-Seattle, said the transportation-funding deal reached by House and Senate lawmakers will support critical projects that include the I-5 bridge in Vancouver, the Spokane North-South Freeway, the Gateway Project and the I-5 Fort Lewis Project.
“(The transportation budget) funds long-overdue maintenance and preservation projects, supports transit and multimodal infrastructure and modernizes how we invest in safety and mobility,” Fey said.
Once the governor signs the new budget, it will take effect July 1. LL
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