Latest news with #SenateBill5801
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
25-04-2025
- Business
- Yahoo
WA House advances gas tax increase, $3.2B transportation revenue package
Traffic on Interstate 5 near Olympia. (Bill Lucia/Washington State Standard) Washington House Democrats late Thursday approved a multibillion-dollar transportation revenue package anchored by a 6-cent increase to the state's gas tax, the first hike in nearly a decade. The increase would bring the state's per-gallon gas tax from 49.4 cents to 55.4 cents, then raise it by 2% each year to account for inflation. At the same time, the state tax on diesel would go up three cents in July and another three cents two years later. That six cents would also get a 2% boost each year after that. The gas tax hike, which would go into effect in July, is expected to raise $1.4 billion over the next six years. The diesel tax would net upward of $160 million over that time, estimates show. In total, lawmakers are banking on the package to bring in $3.2 billion over the next six years. Senate Bill 5801 contains numerous other tax and fee boosts. There's an increase in the passenger vehicle weight fee. There's a bump in the added sales tax for vehicles from 0.3% to 0.5%. There are $3 increases in the fees for titles and registrations. There's a new 8% tax on the portion of the selling price of vehicles above $100,000. There's a 10% tax on the amount of non-commercial aircraft sales above $500,000. There's a temporary increase in the rental car tax from 5.9% to 11.9% before moving down to 9.9% in 2027. There's an increase in the tire replacement fee from $1 to $5. There's a $1 increase every three years in fees for new IDs and driver's licenses. And there's an added charge for ferry riders paying with credit cards, as well as a 50-cent increase to the capital vessel surcharge on each fare. House Transportation Committee Chair Jake Fey, D-Tacoma, said the 'dire' transportation budget situation warrants the potpourri of taxes. Lawmakers have warned of a $1 billion shortfall over the next two-year budget cycle, ballooning to $8 billion over the next six years. They point to skyrocketing construction costs, flagging gas tax revenue and the looming multibillion-dollar question of how to address the court-ordered removal of culverts blocking fish migration. 'My constituents don't want to pay more, but they want to drive on roads that are well maintained,' said Rep. Julia Reed, D-Seattle. 'They want to ride on ferries that function and run on time. They want to see their streets served by modes of transportation that allow them to get out of their cars once in a while, and allow their children to move around more freely.' Republicans say the medley of taxes, on top of separate levies to pay for the operating budget, is too much for working-class residents to bear. Rep. Andrew Barkis, the leading Republican voice in the House on transportation issues, said in floor debate that he recognizes revenue is needed to improve Washington's infrastructure. But 'it comes to a point where we're putting this on the backs of Washingtonians with an ever-increasing burden of taxation,' said Barkis, of Olympia. On the House floor, Democrats rejected Republican proposals to get rid of the increases to the gas and diesel taxes, rental car tax, vehicle sales tax and tire replacement fee. Democrats did choose to ax a controversial $1-per-attendee tax on sporting events, concerts and more at large venues. To make up for the lost revenue, they added another increase to the fee on heavier passenger vehicles. They also elected to require the state Department of Transportation to conduct an analysis before imposing tolls across the entire State Route 520 corridor, not just the floating bridge, as is currently the case. When the Senate approved its initial $3 billion revenue framework last month, four Republicans joined most Democrats in support. On Thursday night, the new version in the House passed 51-47 without any Republican votes and eight Democrats in opposition. Senate Bill 5801 now goes to the Senate to agree with the changes made in the House before sending it to Democratic Gov. Bob Ferguson's desk by Sunday's scheduled close of the legislative session. The chamber plans to take it up later Friday. Ferguson has not publicly weighed in on the proposed gas tax increase. 'We'll see when that comes to me,' Ferguson told reporters Friday, noting he was expecting a briefing from his budget director on the plan's latest version. How exactly the additional money will be spent remains to be seen. Lawmakers finished negotiating late Wednesday on their funding plan, expected to total upward of $15 billion. They plan to release their agreed proposal Saturday morning. Also on Thursday, the House approved transferring 0.1% of proceeds from the state sales tax from the operating budget to transportation starting in the 2027-29 biennium. This would shift hundreds of millions of dollars toward transportation. The Senate on Friday also passed the bill, Senate Bill 5802, so it's headed to the governor.
Yahoo
23-04-2025
- Automotive
- Yahoo
Hearing both sides of the gas tax debate
Washington state lawmakers heard passionate testimony Tuesday about the bill that would raise the gas tax and create other taxes across the state. Senate Bill 5801 would raise the $0.494 per gallon gas tax by $0.06 per gallon next year, then 'index' a two percent increase each year in an effort to keep up with inflation. The gas tax last increased in 2016, according to the Federal Transportation Commission. It's estimated to generate $3.205 billion over six years. 'This would be a great opportunity to jump in on the preservation side. This will save tens of millions of dollars each year if we can get on [road projects] and get them going before they get worse,' testified Billy Wallace with the Washington and Northern Idaho District Council of Laborers. The bill would also create a tax on 'luxury' cars over the cost of $100,000, as well as other luxury vehicles such as boats, non-commercial aircraft, and motor vehicles that cost $500,000. It would also increase electric vehicle registration fees, registration fees for all cars, driver's license fees, tire fees, and large events with over 20,000 attendees. 'Please, be nice to the middle class,' said Kenny, who says high gas prices strain what he can provide for his family. 'It's hard enough with inflation and everything else going on in this world. Please be nice to us, please.' The House Transportation Committee will vote to send the bill to the full House Wednesday morning. The Senate has already passed the bill. KIRO 7's Brandon Thompson dives in to the debate tonight at 5, 6, and 7 p.m.
Yahoo
30-03-2025
- Business
- Yahoo
WA State Senate passes bill to hike gas tax by 6 cents per gallon
The Washington State Senate voted on Saturday to pass a bill that would increase taxes on gas by six cents. Senate Bill 5801 passed in a 31 to 18 vote and if signed into law, it would increase by two percent annually to account for inflation, according to a Senate bill report. The bill would also increase fees for electric and hybrid vehicles, including a bump to registration renewal fees from $100 to $150. The increase in costs is aimed to make up for a $1 billion budget shortfall, according to Washington Senate Democrats. The bill was one of three passed on Saturday to address the state transportation budget. 'This is a year of budget challenges, but through a spirit of collaboration and compromise, we found a bipartisan solution to keep Washington moving ahead,' said Sen. Marko Liias (D-Edmonds). Senate Bill 5801 faced some opposition from Senate Republicans. 'We're putting gas taxes on automatic pilot and we're putting the citizens of the state on mute,' Sen. Jeff Wilson (R-Longview) said. 'Their taxes will keep going up and up, without representation, and the state will keep on taking and taking,' he said. The Washington State House is also considering a bill to raise the gas tax by nine cents, which is expected to be voted on next week.
