Washington Lawmakers Consider 6-Cent Gas Tax Increase

Washington state lawmakers are advancing a bipartisan transportation revenue package centered on a 6-cent-per-gallon gas tax increase—the first since 2016—that would bring the state rate from 49.4 to 55.4 cents per gallon starting July 1, with 2% annual inflation adjustments thereafter. This measure, part of Senate Bill 5801, aims to address a multi-billion-dollar deficit in the transportation budget caused by rising construction costs and declining gas tax revenues due to more fuel-efficient vehicles. The package is estimated to generate $3.2 billion over six years and also includes increased taxes and fees on luxury vehicles, electric vehicle registrations, diesel fuel, and other transportation-related areas. Lawmakers argue the increase is necessary to fund highway projects, state patrol, ferries, and environmental requirements, while some members of the public express concerns about the impact on already high gas prices and the middle class. The House had previously proposed a higher, 9-cent increase, but the current plan hews closer to the Senate's more moderate proposal. The bill has already passed the Senate and is moving through the House for final negotiations.