Washington state lawmakers have approved differing transportation budgets. Both two-year plans include fuel tax increases.
The $15.2 billion House plan 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.
Projects highlighted that would benefit from the funding include the continuation of the North Spokane Corridor freeway and safety improvements on state Route 18 in Snoqualmie Valley.
The House version would raise the state’s 49.4-cent fuel tax rate by 9 cents to 58.4 cents. The plan calls for indexing the tax to inflation thereafter.
The fuel tax rate increase is estimated to raise $1.8 billion over six years to help pay for the transportation work.
Other revenue measures in the House budget include a new highway use fee, which would be based on fuel efficiency, and an increase in the sales tax on most vehicles.
The highway use fee would be implemented in July 2026. The fee would be paid at registration by passenger vehicles with a fuel economy of at least 25 miles per gallon and with a weight of up to 10,000 pounds.
Electric and hybrid vehicle owners would be exempt from the highway use fee. They would continue to pay an annual registration fee.
House Transportation Committee Chairman Jake Fey, D-Seattle, said the budget is a mix of funding for today’s needs and what will be needed for the future.
“We’ve made the investments. Now we’re taking the necessary steps to pay for them – and protect them for the long haul,” Fey said in prepared remarks.
Senate plan differs
Senate lawmakers approved a $16.2 billion budget that would increase the fuel tax by 6 cents per gallon – 3 cents less than the House plan. The Senate proposal includes a 2% annual increase in the fuel rate to account for inflation.
Senators endorsed fee increases for electric and hybrid vehicles as well. Registration renewals would also be raised from $100 to $150.
A new 10% luxury tax would be collected on certain motor homes, watercraft and aircraft.
Additionally, one-third of a percent of sales tax collections would be shifted from the state’s operating budget to transportation starting in July 2027.
Sen. Curtis King, R-Yakima, said the bipartisan Senate plan would “allow our state to finish long-awaited highway projects, improve safety on our roads and highways and get our ferry system back on track.”
“The transportation budget passed by the Senate today reflects the collaboration and compromises from both sides as we try to fix our state’s transportation problems,” King stated.
All told, the Senate approved a budget plan, revenue bill and bond bill. House lawmakers approved an amended Senate budget bill. The chamber has not approved a revenue or bond bill.
House and Senate budget teams will negotiate a final budget that will go to the governor’s office for signature before the end of the regular session on April 27. The new budget will take effect July 1. LL
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