Higher gas tax takes effect July 1 in Washington state
Why it matters: Because wholesale fuel prices are falling, Washingtonians may not wake up to a 6-cent spike at the pump, but they may "notice a little bit of an increase," Patrick De Haan, head of petroleum analysis at GasBuddy, told Axios.
By the numbers: The hike on July 1 will raise Washington's gas tax from 49.4 cents per gallon to 55.4 cents per gallon.
The increase, along with changes to diesel taxes, will generate about $1.4 billion in new revenue for state highway projects over the next six years.
It's part of a larger $3.2 billion transportation tax package lawmakers approved in April.
The big picture: Washingtonians already pay more for gas than people in most other states.
While AAA pegged the nationwide average price per gallon at $3.21 as of Friday, a gallon in Washington averaged about $4.45.
What they're saying: The higher tax is part of a bipartisan deal "to invest in critical infrastructure that all Washingtonians count on — roads, bridges and ferries," state Sen. Marko Liias (D-Edmonds), who chairs the Senate Transportation Committee, told Axios.
Yes, but: The money isn't bankrolling a bunch of new projects, state Rep. Jake Fey (D-Tacoma), chair of the House Transportation Committee, told Axios.
Instead, it's helping shore up funding for megaprojects the state has already approved, several of which have recently come in over budget by hundreds of millions of dollars.
"We're getting killed by inflation," Fey said Friday.
The fine print: Washington lawmakers also voted to make the state's gas tax increase by 2% automatically each year starting next July, a step they haven't taken before.
Between the lines: De Haan said several other states have adopted similar automatic gas tax increases, typically indexed to inflation.
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