Washington lawmakers approve 6-cent gas tax hike with July start date
Late Friday, the Senate passed Senate Bill 5801, a sweeping transportation revenue package anchored by a 6-cent gas tax hike, by a bipartisan 31-17 vote. The House approved the plan a day earlier. Gov. Bob Ferguson is expected to review the package soon, but it's highly likely it is signed when it hits his desk. The legislative session is scheduled to adjourn Sunday and it's expected to give the final legislative approval before then.
Starting July 1, the gas tax will rise from 49.4 cents to 55.4 cents per gallon. Diesel fuel taxes will also increase by 3 cents this year and another 3 cents in 2027. After mid-2026, both gas and diesel taxes will grow by 2% annually to keep pace with inflation.
Washington drivers pay the third-highest average gas prices in the nation at $4.28, according to the AAA, just behind California and Alaska. The national gas price average is $3.15.
The tax hikes, combined with other new fees, are expected to generate $3.2 billion over the next six years to bolster the state's struggling transportation budget. Lawmakers said the additional funding is critical to addressing runaway construction costs and fulfilling longstanding infrastructure promises.
'We're asking Washingtonians to pay some more to fund our transportation system, but we're spending it on keeping our promises, on preserving and maintaining highways, and on safety,' Sen. Marko Liias (D-Edmonds) said.
Besides the gas and diesel tax hikes, SB 5801 raises a range of fees. Vehicle weight fees will increase by $10 to $24 annually starting in January, depending on the size of the vehicle. The state's special sales tax on motor vehicles will jump from 0.3% to 0.5%. A new 8% luxury tax will hit vehicles sold for over $100,000, and a 10% tax will apply to aircraft valued above $500,000.
Rental car taxes will temporarily more than double, from 5.9% to 11.9% in 2026, before settling at 9.9% in 2027. Tire replacement fees will also rise from $1 to $5 per tire.
Lawmakers from both parties acknowledged the package is a tough sell. Washingtonians already pay some of the highest gas prices in the country — averaging $4.29 per gallon, including taxes, according to AAA — and the new increases could push the state to the third-highest gas tax nationwide, behind only California and Pennsylvania.
'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,' said Sen. Curtis King (R-Yakima) in a statement.
Republicans were divided over the plan. While some backed it in the Senate, no Republicans supported it in the House, where they warned that working families are being crushed under the weight of constant new taxes.
Democrats defended the move, arguing that without new revenue, Washington faced a transportation budget shortfall of up to $8 billion over six years, imperiling ferry service, pothole repairs, and critical bridge replacements.
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