Latest news with #MarkoLiias
Yahoo
28-04-2025
- Business
- Yahoo
What's driving up gas prices in Washington and 4 ways you can save
Drivers in Washington are frustrated at the high price of gas and the condition of the state's highways. Despite the Evergreen State having the third-highest gas tax in the country, our roads consistently rank among the top 10 for worst roads in the country. Construction Coverage ranks Washington as the #10 state with the worst roads, and U.S. News and World Report ranks Washington #7 for worst road quality. State lawmakers are pointing the finger at inflation. 'We see egg prices at the grocery store. Well, concrete prices have been going up even faster,' said Sen. Marko Liias, D-Edmonds, who chairs the Senate Transportation Committee. 'So buying power for our transportation investments is falling short each year. And that means we're repaving less and less highway,' he said. That was the biggest driver behind lawmakers passing an additional six-cent tax per gallon on gasoline over the weekend. But the factors making fuel so expensive in the Evergreen State go far beyond taxes - and will continue to drive up costs for drivers. GAX TAX: The change in the gas tax will kick in July 1, 2025, increasing the rate from 49.4 cents to 55.4 cents per gallon. Making fuel even more expensive, the gas tax will also increase by 2% every year. Diesel drivers will see a hike too - 3 cents in July, and another 3 cents in 2027, then a 2 percent hike annually starting the following year. Over six years, the new tax will raise $3.2 billion for the state's transportation budget. Drivers KIRO 7 spoke with are somewhere between furious and disappointed. 'Yeah, it sucks,' said Joel Garland, a driver from Federal Way. 'The regular people were struggling just to try to survive already,' he said. Gas taxes in Washington state are the third highest in the country already, behind California and Pennsylvania. The six-cent increase keeps us in third place, but it doesn't count in other factors driving up the price. Why is gasoline already so expensive in Washington? Our state has no income tax, so lawmakers heavily rely on the gas tax to fund road projects. The state constitution mandates that gas tax funding be used for things like building and repairing roads and Washington State Patrol policing highways. 'The highest portion of our revenues is the gas tax. It's unfortunate that it's that way, but the reality is if you're going to raise money, you have to raise the gas taxes,' said Rep. Jake Fey, D-Tacoma, who chairs the House Transportation Committee. GEOGRAPHY: Another reason for our more expensive fuel: Washington's primary petroleum supplier is pricier, coming from Alaska and Canada instead of the South or Southeast because of geography - the mountain ranges block easy transport of crude oil to the west. The bulk of Washington's crude oil is turned into gasoline at one of our state's five refineries. CAP AND TRADE: Plus, Washington's Climate Commitment Act, or cap and trade program, charges the state's biggest carbon emitters for carbon credits past a certain level. Companies end up passing that cost along to you. 'Anytime a gallon of gas is sold in Washington State, whether it is produced in state or out of state, it gets taxed,' said Todd Myers, vice president of research at the Washington Policy Center. The think tank has been critical of Washington's cap and trade policy. It says currently, cap and trade adds about 40 cents per gallon for the consumer (though the Washington Department of Ecology believes the number is lower). And brace yourselves - soon, you'll be shelling out even more. In 2030, Washington is dramatically lowering its carbon emissions target, which means companies will have to pay even more for credits - and you'll likely pay more to fill up. 'Should people really be preparing to pay significantly more at the pump?' KIRO7's Deedee Sun asked Myers. 'Yeah, absolutely,' he said. 'The only question is how much more,' Myers said. People say the gas prices are surging at a time when they're already concerned about making ends meet. 'What would you say to your constituents who are worried?' KIRO7's Deedee Sun asked Sen. Liias, D-Edmonds. 'Construction inflation has moved faster even than inflation,' Liias said. He says that's part of the reason why the state's transportation budget faced such a big budget gap. 'I'm seeing more potholes than I can remember in my lifetime on our highways,' he said. He points to aging infrastructure – like the Fairfax Bridge to Mount Rainier that had to be shut down this month, to things like repair work such as Revive I-5. 'That's what the gas tax pays for. So we're trying to balance that with the reality that folks are having a tough time affording,' Liias said. However, KIRO7 discovered, cap and trade is generating more money than expected. 'Why can't we use that money for roads instead?' Sun asked Rep. Fey. 'We made a promise about how this money was going to be spent,' Fey said. Lawmakers say cap and trade money is intended for things that lower greenhouse gases – like electrifying ferries, getting kids free rides on public transit, and adding bike lanes. 'To do a substitution, I think, goes against promises that we made,' Fey said. 'We're doing the best we can,' he said. SAVING AT THE PUMP: So what can you do to save money at the pump? KIRO7 checked in with AAA Washington for tested ways to cut down on spending. 1) You must price compare. Gas Buddy or AAA's apps both help you do that. For example, a Chevron in Renton last week was charging $4.57 per gallon when you pay with credit or debit. A few blocks away, the Fred Meyer was charging $4.19 – or 38 cents less. That's a difference of $300 dollars per year! 2) Remember some stations offer a discount if you pay with cash. That same Renton Chevron was charging 14 cents less per gallon for cash purchasers. 3) Slow down: AAA Washington says, 'reducing highway speeds by 5 to 10 mph can increase fuel economy by as much as 14 percent.' 4) Avoiding excessive idling. AAA says a car engine uses up to half a gallon per hour when idling. Starting up a warm engine uses about 10 seconds worth of fuel. So if you're going to be stopped for more than a minute and it's safe to turn off your car, you'll save fuel if you do so. Meanwhile some drivers say what would help most? 'Well, just quit taxing us,' said Nelson Vitous, a driver in Renton.
Yahoo
27-04-2025
- Business
- Yahoo
$15.5B Washington transportation budget heads toward final vote
An aerial view in February 2024 of work on a new bike and pedestrian bridge over State Route 520 and connecting trails north and south of the highway. (Washington State Department of Transportation) Washington lawmakers announced Saturday a $15.5 billion plan to pay for a wide range of transportation needs, from highway megaprojects to state ferries. It's backed by the first gas tax increase in nearly a decade. The package is a jump from what is now expected to be a $13.2 billion transportation budget for the current biennium. More than a third of the new budget will pay for road improvements, with another almost $1.6 billion to spend on highway maintenance and road preservation. The bipartisan framework for the next two-year budget cycle that starts July 1 includes $895 million for new ferries, terminal improvements and vessel preservation, $1.1 billion for the removal of obstacles to fish migration and $312 million in rail investments and port electrification. The total funding included in Senate Bill 5161 is more than what the House had initially proposed, and less than the Senate's plan. No workers would face furloughs. Initially, the Senate proposed 13 furlough days in fiscal year 2026 for many state transportation workers. As in the original House version, some road projects not already contracted would be paused, but many of the biggest would continue. 'We're keeping our promises on the core projects,' said Sen. Marko Liias, D-Edmonds. 'I think it's been a very difficult process, but we've landed at a result that I think Washington is going to be proud of.' A 6-cent boost to the gas tax will help the state keep its promises. This week, the state House and Senate approved raising or creating a bevy of taxes and fees, including the gas tax, shoveling an estimated $3.2 billion toward transportation over the next six years. The suite of new revenue now awaits action from Gov. Bob Ferguson, a first-term Democrat. The revenue package received no Republican support in the House and five Republican votes in the Senate. Funding transportation for the next biennium came with numerous challenges, including soaring costs for highway construction, state ferry replacements, and culvert removals. Languishing gas tax proceeds make up much of the state's transportation revenue, and a warming planet is fueling moves toward more energy-efficient vehicles. These problems left transportation with a $1 billion shortfall in the next two-year budget, growing to $8 billion over the next six years. Without new money, lawmakers warned of major projects left unfinished. Lawmakers have to balance the budget across four years. 'I don't think there's ever been a more challenging piece of legislation that we've worked through,' said Rep. Andrew Barkis, the top House Republican on transportation policy. Negotiations between the House and Senate were made even more difficult by the gulf that separated their two initial proposals. For one, the Senate looked to eliminate half of the shortfall through a creative plan to move funding for the court-ordered removal of fish passage barriers to the construction budget. The House didn't take up the idea. The budget announcement comes on day 104 of the 105-day legislative session, so both chambers plan to pass it Sunday. The framework is dedicated to Sen. Bill Ramos, who worked on the transportation budget before his unexpected death last Saturday while on a trail run near his home in Issaquah. 'This has been a difficult process,' said Liias, the chair of the Senate Transportation Committee. 'Losing our friend a week ago and trying to write a budget while we were all heartbroken made a very difficult task almost impossible.' The proposed money will keep on track some of the state's behemoth highway undertakings, like the North Spokane Corridor, Puget Sound Gateway spanning King and Pierce counties and improvements on State Route 520 between Seattle and Redmond. And $580 million is included for the new Interstate 5 Columbia River Bridge spanning Washington and Oregon. Lawmakers this session also approved authorizing the sale of $2.5 billion in bonds to help pay for the replacement. The bond bill now sits on Ferguson's desk. The bridge replacement will cost an estimated $5 billion to $7.5 billion. Permits are anticipated by 2026, and construction is projected to last until 2032. One of the many needs looming over budget writers this session was the transition to a hybrid-electric ferry fleet. Ferguson, though, announced last month that the state would postpone conversions of the state's largest vessels as Washington has struggled to keep enough ferries in service. The first conversion fell well behind schedule and ballooned in price. State officials will likely reconsider the conversions after the FIFA World Cup next summer. Meanwhile, bids for five brand new hybrid-electric vessels are due next month. The proposed budget for this biennium includes $274 million for new ferry construction, $221 million for preservation of existing ferries and $151 million for terminal electrification. Proceeds from carbon auctions under the Climate Commitment Act make up almost $1.4 billion of the total budget. That money would pay for $461 million for public transit, $316 million in active transportation projects, $230 million for ferries and $225 million for work on electrification and alternative fuels. And speaking of the World Cup, the budget includes $9 million in grants for public transit agencies to provide increased service during the tournament. Washington state officials last year acknowledged they couldn't meet the goal of opening up 90% of the habitat that culverts have long blocked by 2030. That benchmark came after a judge found the state violated tribes' treaty fishing rights by installing poorly designed and maintained culverts, which carry water under roadways. So the state has to pay to correct these barriers that impede salmon and steelhead migration in western Washington. But like other transportation projects, this work has skyrocketed in cost, with some remaining endeavors facing price tags upward of $100 million. The state and tribes are entering mediation to figure out a new path forward that recognizes the state's fiscal reality and the upstream and downstream barriers that would still block fish passage even after state culverts are removed. The state Senate had pushed a plan to borrow up to $5 billion to address the culvert shortfall. But the bipartisan proposal ran into opposition that doomed its chances this year, including from the governor. Liias hopes lawmakers can revive the legislation, Senate Bill 5804, next year. But for now, he called the $1.1 billion for this work a 'good-faith step to show our tribal leaders we're serious' as the state enters mediation.
Yahoo
26-04-2025
- Automotive
- Yahoo
Washington lawmakers approve 6-cent gas tax hike with July start date
Washington drivers will soon pay even more at the pump, after lawmakers approved the state's first gasoline tax increase in nearly a decade. 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.
Yahoo
23-04-2025
- Business
- Yahoo
Democratic lawmakers push tax increases in hopes of balancing Washington's budget
Apr. 22—OLYMPIA — Faced with a looming deadline, the Washington Senate passed a trio of bills over the weekend that would raise the capital gains tax on financial assets above $1 million a year, close certain tax exemptions and expand the sales and tobacco taxes. The legislation is part of a slate of tax increases Democrats unveiled last week as the state works to close an estimated $15 billion budget deficit. As legislators released the new revenue plan last week, Sen. Noel Frame, D-Seattle, vice chair for finance of the Senate Ways & Means Committee, said the proposals find "a balance to meet our short-term need of addressing the budget shortfall and protecting the critical services on which our communities rely, as well as our long-term goal of reforming our outdated, unfair tax code." The bills passed the Senate this weekend along nearly party lines, with Republicans universally opposing the measures. Each bill the Senate passed this weekend received a hearing in the House Finance Committee on Monday morning and could be voted out of committee Tuesday. The largest piece of new revenue is a bill Democrats say would "modernize" the state's sales tax and bring in a projected $2.9 billion over the next two years and $4.7 billion over four years. The sales tax would be expanded to cover software development and other information technology services. The state's tobacco tax would expand to cover nicotine pouches, such as Zyn. Sen. Marko Liias, D-Mukilteo, said Saturday that the state's sales tax has not been adjusted to keep up with a shift from a goods-based economy to a services-based economy. "The folks that can only afford to buy goods still pay, but the folks who can afford to pay for services increasingly are not," Liias said. "We are modernizing that with this bill." A proposal to raise the capital gains tax on assets over $1 million and bring in approximately $282 million over the next two years and $561 million over four years also has found support among Senate Democrats. Sen. Claire Wilson, D-Federal Way, said the bill would "move us in the right direction towards tax fairness." "The impact of the modifications of the capital gains and estate taxes will impact only a small portion of the wealthy people in our state," Wilson said. The Senate also adopted a bill to repeal tax exemptions where the "public policy objective was not met" or the exemption is "legally obsolete." Sen. Jesse Salomon, D-Shoreline, said the legislation is "what responsible government efficiency looks like." "A thoughtful and better result," Salomon said. Among the exemptions targeted to be removed is one on the international business and occupation tax credit and the dentistry prepayment insurance premiums tax exemption. Tax exemptions listed to end in the bill were previously identified by the Joint Legislative Audit and Review Committee. Following Saturday's votes, Sen. Chris Gildon, R-Puyallup, the Senate Republican budget leader, said the three bills "are just part of the Democrats' effort to impose the largest tax increase in state history on the people of Washington." Senate Republicans attempted to bring their budget proposal to a vote on Saturday , saying the state can adopt a balanced budget and fund major programs without new taxes. The effort failed. "I realize our budget may not fully satisfy some of the special interests that are looking to the majority to deliver, but our plan respects the taxpayers — and with eight days left in this session, it also offers the surest way to finish our work on time," Gildon said. Sen. Nikki Torres, R-Pasco, the Republican's assistant budget leader, said the revenue proposals supported by Democrats will "take more money from the people who can least afford to lose it." With less than a week before the Legislature is set to adjourn, the House also is considering tax increases. The House Finance committee heard four other tax proposals on Saturday, which include increasing the state's business and occupation tax, and could bring the proposals to a full vote Monday evening. Still, it's unclear which of the proposals the Legislature will consider this week will ultimately make it over the finish line or how much they could raise. While Gov. Bob Ferguson has indicated he would not support an all-cuts budget, he has not said which tax he prefers, or how much new revenue he would support. Ferguson previously proposed approximately $4 billion in spending cuts on top of roughly $3 billion in cuts identified by former Gov. Jay Inslee. Citing concern over how the federal administration could impact the state, Ferguson released a statement on Thursday following the unveiling of the Democrats' revenue proposals that said in part that "raising $12 billion in taxes is unsustainable, too risky and fails to adequately prepare Washington state for the crisis that looms ahead." Ferguson added that the Legislature had made "progress on key issues" in the updated revenue proposals. "We will continue to work together to produce a budget that supports a strong economy, and the people of Washington," Ferguson said Thursday. The Legislature faces a Sunday deadline to adopt a budget to avoid a special session.
Yahoo
22-04-2025
- Business
- Yahoo
Democratic lawmakers in move forward with tax increase plans in hopes of balancing Washington's budget
Apr. 21—OLYMPIA — Faced with a looming deadline, the Washington Senate passed a trio of bills over the weekend that would raise the capital gains tax on financial assets above $1 million a year, close certain tax exemptions and expand the sales and tobacco taxes. The legislation is part of a slate of tax increases Democrats unveiled last week as the state works to close an estimated $15 billion budget deficit. As legislators released the new revenue plan last week, Sen. Noel Frame, D-Seattle, vice chair for finance of the Senate Ways & Means Committee, said the proposals find "a balance to meet our short-term need of addressing the budget shortfall and protecting the critical services on which our communities rely, as well as our long-term goal of reforming our outdated, unfair tax code." The bills passed the Senate this weekend along nearly party lines, with Republicans universally opposing the measures. Each bill the Senate passed this weekend received a hearing in the House Finance Committee on Monday morning and could be voted out of committee Tuesday. The largest piece of new revenue is a bill Democrats say would "modernize" the state's sales tax and bring in a projected $2.9 billion over the next two years and $4.7 billion over four years. The sales tax would be expanded to cover software development and other information technology services. The state's tobacco tax would expand to cover nicotine pouches, such as Zyn. Sen. Marko Liias, D-Mukilteo, said Saturday that the state's sales tax has not been adjusted to keep up with a shift from a goods-based economy to a services-based economy. "The folks that can only afford to buy goods still pay, but the folks who can afford to pay for services increasingly are not," Liias said. "We are modernizing that with this bill." A proposal to raise the capital gains tax on assets over $1 million and bring in approximately $282 million over the next two years and $561 million over four years also has found support among Senate Democrats. Sen. Claire Wilson, D-Federal Way, said the bill would "move us in the right direction towards tax fairness." "The impact of the modifications of the capital gains and estate taxes will impact only a small portion of the wealthy people in our state," Wilson said. The Senate also adopted a bill to repeal tax exemptions where the "public policy objective was not met" or the exemption is "legally obsolete." Sen. Jesse Salomon, D-Shoreline, said the legislation is "what responsible government efficiency looks like." "A thoughtful and better result," Salomon said. Among the exemptions targeted to be removed is one on the international business and occupation tax credit and the dentistry prepayment insurance premiums tax exemption. Tax exemptions listed to end in the bill were previously identified by the Joint Legislative Audit and Review Committee. Following Saturday's votes, Sen. Chris Gildon, R-Puyallup, the Senate Republican budget leader, said the three bills "are just part of the Democrats' effort to impose the largest tax increase in state history on the people of Washington." Senate Republicans attempted to bring their budget proposal to a vote on Saturday , saying the state can adopt a balanced budget and fund major programs without new taxes. The effort failed. "I realize our budget may not fully satisfy some of the special interests that are looking to the majority to deliver, but our plan respects the taxpayers — and with eight days left in this session, it also offers the surest way to finish our work on time," Gildon said. Sen. Nikki Torres, R-Pasco, the Republican's assistant budget leader, said the revenue proposals supported by Democrats will "take more money from the people who can least afford to lose it." With less than a week before the Legislature is set to adjourn, the House also is considering tax increases. The House Finance committee heard four other tax proposals on Saturday, which include increasing the state's business and occupation tax, and could bring the proposals to a full vote Monday evening. Still, it's unclear which of the proposals the Legislature will consider this week will ultimately make it over the finish line or how much they could raise. While Gov. Bob Ferguson has indicated he would not support an all-cuts budget, he has not said which tax he prefers, or how much new revenue he would support. Ferguson previously proposed approximately $4 billion in spending cuts on top of roughly $3 billion in cuts identified by former Gov. Jay Inslee. Citing concern over how the federal administration could impact the state, Ferguson released a statement on Thursday following the unveiling of the Democrats' revenue proposals that said in part that "raising $12 billion in taxes is unsustainable, too risky and fails to adequately prepare Washington state for the crisis that looms ahead." Ferguson added that the Legislature had made "progress on key issues" in the updated revenue proposals. "We will continue to work together to produce a budget that supports a strong economy, and the people of Washington," Ferguson said Thursday. The Legislature faces a Sunday deadline to adopt a budget to avoid a special session.
