Latest news with #RoadUsageCharge
Yahoo
12-02-2025
- Automotive
- Yahoo
WA eyes pay-by-mile system as gas tax revenue declines
This story was initially published by After more than a decade of tabletop exercises, pilot programs and studies, the legislature is finally going to take up the Road Usage Charge (RUC). The plan to have us pay-by-mile will have its first hearing on Thursday. The gas tax just doesn't cut it anymore. I have been reporting on this idea for more than a decade. Fuel-efficient cars get better gas mileage and pay less gas tax. Electric vehicles don't use gas, and their owners don't pay gas taxes for the upkeep of roads. We know the legislature fails to fund the maintenance and preservation of roads by a billion dollars a year. State Representative Jake Fey, a Democrat from Tacoma, has finally introduced a bill to start the RUC program. More Chokepoints: Bellevue considering getting rid of free street parking I spoke with the House Transportation Committee Chair last year about whether now was the time to get started. 'We need to set things in motion,' he said. 'It's going to take some time to get this all in place and to do it in a way that's that is going to be very workable, but the longer we put it off, the more we find ourselves to be in a hole.' As Representative Fey announced Thursday's hearing, his office made the case for starting the RUC by saying gas tax revenue will decline by over 70% by 2050. To keep pace, his office said the gas tax would have to go up from its current $0.494 a gallon to nearly $2 a gallon over the same time. If the situation is so dire, I asked Representative Fey why there hasn't been any urgency to transition to this. 'I try to listen to people, and I think they're frustrated that we haven't made a lot of progress, other than doing some interesting studies,' he said. 'It was time to actually set this in motion because our gasoline revenues are not going to grow.' The plan is for the RUC to eventually replace the gas tax, though that is not mentioned specifically in House Bill 1921. It would charge drivers $0.026 a mile for every mile they drive. That's up from the $0.024 a mile that had always been on the table. The money raised would be protected by the 18th Amendment, just like the gas tax and earmarked specifically for the preservation and maintenance of highway purposes. But this bill goes beyond the original road usage plans by also charging drivers an extra assessment — equal to 10% of your yearly RUC charge — that would go to other modes, like rail, bikes, pedestrians and public transportation. You would pay the RUC when you renew your tabs. At a press conference Tuesday, Representative Fey described the RUC as more equitable way to pay for roads. 'I believe the RUC is fair,' he said. 'Everyone pays based on how much they drive. The RUC is sustainable. It ensures long term funding stability as vehicles become more fuel efficient, and it is a tested and proven way in which to create a system that has the user pay based on their use of the highway system.' More Chokepoints: Speed cameras coming to WA freeway work zones soon But here's where it gets really messy. Drivers would pay the gas tax at the pump and be charged the RUC at the same time. Your gas tax would then be credited toward your RUC at renewal. The gas tax wouldn't go away right away. That's because our transportation projects are bonded against the gas tax and those bonds need to be paid back with the gas tax. If passed by the legislature, EVs and hybrids would be able to start a voluntary program in 2027. Gas vehicles, with better than 20 miles a gallon, can start a voluntary program in 2029. This would become mandatory for EVs and hybrids in 2029 and mandatory for the most fuel efficient gas vehicles in 2031. It would start with a straight odometer read when renewing your tabs. Plans for wireless or GPS-based tracking would follow as an option. The bill does mention that the privacy of the owner is a 'first principle,' as it pertains to location data. There are no plans to track travel patterns or locations. Check out more of Chris' Chokepoints here. You can also follow Chris on X. Head here to follow KIRO Newsradio Traffic's profile on X
Yahoo
12-02-2025
- Automotive
- Yahoo
Legislator proposes pay-per-mile driver tax to buoy declining gas tax revenue
Feb. 12—A Washington lawmaker has introduced a bill that could charge drivers for each mile they drive. Rep. Jake Fey, D-Tacoma, chair of the House Transportation Committee, has proposed a Road Usage Charge for passenger vehicles in the state amid a yearslong decline in gas tax revenue. If adopted, the proposal would charge Washington drivers 2.6 cents for each mile driven. The program would be phased in, with the first phase beginning in 2027. Vehicles over 10,000 pounds would be exempt. The House Transportation Committee will consider the legislation during a hearing Thursday. According to Fey, Washington's gas tax of 49.4 cents per gallon currently funds more than a third of the state's transportation budget. But as cars become more fuel efficient, and electric vehicles gain in popularity, the state is projected to see a steep decline in revenue from the tax. By 2050, Fey says gas tax revenue could decline by over 70%, and the state would need to quadruple the gas tax to maintain current revenue levels. During a media availability Tuesday, Fey said revenues have remained a consistent challenge during his seven years as chair of the transportation committee. "Without a new funding solution, Washington roads, bridges and ferries will deteriorate," Fey said. Fey said several states have considered similar proposals or implemented voluntary programs for drivers, including Utah, Hawaii, Virginia and Oregon. If adopted, the charge would be calculated through self-reported mileage information provided by drivers. Drivers would not be required to install a GPS in their cars, and drivers would no longer be required to pay the annual $225 fee for electric vehicles or $75 for hybrid vehicle registration. "I know that there are people who will have concerns about this," Fey said. "We will not be requiring any device in a vehicle. It will be self-reported. The odometer mileage year to year will be self-reported to the Department of Licensing." Drivers would not be required to pay for both the gas tax and mileage tax, and they would receive credits for the gas tax they've already paid, Fey said. The money collected, Fey said, would be used solely for highway maintenance and improvements. "Absent something like this, we're going to spiral downwards on the base form for revenues for the state transportation system," Fey said. The proposal's future in the Legislature, however, remains unclear. "How far it gets in the legislative process, we'll see, but I would like to see some level of action on this," Fey said, adding that legislators must address the decline in revenue in some form. During a media availability Monday, Senate Majority Leader Jaimie Pedersen, D-Seattle, said the Legislature must consider new revenue sources to fund the transportation budget. "There are all sorts of possibilities for what we might shift to not relying on the gas tax," Pedersen said. "This is an option that has been discussed for a long time. To make it real, there are probably some steps we'll take this session to make sure that it's one that we can consider fully."
Yahoo
12-02-2025
- Automotive
- Yahoo
Pay-by-mile is getting closer to reality in Washington
This story was originally published on After more than a decade of tabletop exercises, pilot programs and studies, the legislature is finally going to take up the Road Usage Charge (RUC). The plan to have us pay-by-mile will have its first hearing on Thursday. The gas tax just doesn't cut it anymore. I have been reporting on this idea for more than a decade. Fuel-efficient cars get better gas mileage and pay less gas tax. Electric vehicles don't use gas, and their owners don't pay gas taxes for the upkeep of roads. We know the legislature fails to fund the maintenance and preservation of roads by a billion dollars a year. Is pay-by-mile the answer for a fairer, more stable road funding source? State Representative Jake Fey, a Democrat from Tacoma, has finally introduced a bill to start the RUC program. I spoke with the House Transportation Committee Chair last year about whether now was the time to get started. 'We need to set things in motion,' he said. 'It's going to take some time to get this all in place and to do it in a way that's that is going to be very workable, but the longer we put it off, the more we find ourselves to be in a hole.' As Representative Fey announced Thursday's hearing, his office made the case for starting the RUC by saying gas tax revenue will decline by over 70% by 2050. To keep pace, his office said the gas tax would have to go up from its current $0.494 a gallon to nearly $2 a gallon over the same time. If the situation is so dire, I asked Representative Fey why there hasn't been any urgency to transition to this. 'I try to listen to people, and I think they're frustrated that we haven't made a lot of progress, other than doing some interesting studies,' he said. 'It was time to actually set this in motion because our gasoline revenues are not going to grow.' Here's how the Road Usage Charge would work The plan is for the RUC to eventually replace the gas tax, though that is not mentioned specifically in House Bill 1921. It would charge drivers $0.026 a mile for every mile they drive. That's up from the $0.024 a mile that had always been on the table. The money raised would be protected by the 18th Amendment, just like the gas tax and earmarked specifically for the preservation and maintenance of highway purposes. But this bill goes beyond the original road usage plans by also charging drivers an extra assessment — equal to 10% of your yearly RUC charge — that would go to other modes, like rail, bikes, pedestrians and public transportation. You would pay the RUC when you renew your tabs. And here is where it gets really messy. Drivers would pay the gas tax at the pump and be charged the RUC at the same time. Your gas tax would then be credited toward your RUC at renewal. 'For a gas vehicle, it's going to be a reconciliation,' Fey said. 'You're not going to stop collecting gas tax at the pump.' That's because our transportation projects are bonded against the gas tax and those bonds need to be paid back with the gas tax. Also compounding things, the state doesn't know how to do that reconciliation. This bill only refers to the state having to figure that out later. If passed by the legislature, EVs and hybrids would be able to start a voluntary program in 2027. Gas vehicles, with better than 20 miles a gallon, can start a voluntary program in 2029. This would become mandatory for EVs and hybrids in 2029 and mandatory for the most fuel efficient gas vehicles in 2031. It would start with a straight odometer read when renewing your tabs. Plans for wireless or GPS-based tracking would follow as an option. The bill does mention that the privacy of the owner is a 'first principle,' as it pertains to location data. There are no plans to track travel patterns or locations. Check out more of Chris' Chokepoints here. You can also follow Chris on X. Head here to follow KIRO Newsradio Traffic's profile on X
