Motor Vehicle Fuel Tax and Related Fees.
A state fuel tax rate of 49.4 cents per gallon applies to fuel licensees for both motor vehicle fuel (includes gasoline) and special fuel (includes diesel). Fuel tax revenue distributions are made to various state accounts and to counties and cities following specified percentage allocations.
Motor vehicles that use liquefied natural gas, compressed natural gas, or propane pay an annual license fee. The fee is calculated based on an amount related to gross vehicle weight which is multiplied by the cumulative fuel tax rate per gallon and divided by 12 cents.
Vehicle-Related Fees.
License Fees by Weight.
A person who operates a truck (other than a tow truck) on Washington public roads must pay a registration fee based on the gross weight of the vehicle. The fee is based on two graduated schedules set by 2,000 pound (lb) increments. One schedule applies to vehicles used exclusively for hauling logs or that do not tow trailers; the other schedule applies to all other trucks. The fee is in place of the registration fee required of passenger and other vehicles. Trucks with a gross weight of 10,000 lbs or more must pay a freight project fee equal to 15 percent of the graduated schedule weight fee. In addition, trucks with a gross weight of 12,000 lbs or less must pay an additional $10 fee.
The weight fees for trucks are distributed as follows:
Passenger Vehicle Weight Fees.
Certain vehicles are subject to passenger vehicle weight fees upon registration, including auto stages with six or fewer seats; for-hire vehicles with six or fewer seats; mobile homes; motorcycles; passenger cars; sport utility vehicles; and tow trucks. The fee is based on a graduated schedule set in statute:
An additional $10 fee applies to all vehicles subject to the passenger vehicle weight fee. Proceeds must be deposited into the Multimodal Transportation Account.
Registration and Title Service and Filing Fees.
A $15 service fee is imposed for changes in a vehicle or vessel title certificate, or verification of a record and preparation of an affidavit of lost title. An $8 service fee is imposed for a registration renewal, issuing a transit permit, accepting a vessel registration, accepting a report of sale, and accepting a transitional ownership record.
The service fees collected by the Department of Licensing (DOL) or a county auditor or other agent must be deposited into the Capital Vessel Replacement Account. The service fees collected by subagents are retained by the subagents.
A person pays a filing fee of $4.50 for a vehicle registration or any other right to operate a vehicle on state highways, including transactions involving a report of sale, transitional ownership record, farm vehicle reduced gross weight license, or vessel registration. A person pays a filing fee of $5.50 for a certificate of title for a vehicle or vessel. The filing fee distribution is dependent on the entity that collects the fee.
Abandoned Recreational Vehicle Disposal Fee.
Applicants are required to pay a $6 fee at the time of registration in addition to any other fees required by law for recreational vehicles (RVs). The $6 fee is deposited into the Abandoned Recreational Vehicle Disposal Account to be used to reimburse registered tow truck operators (RTTOs) and licensed dismantlers for the administrative costs of transport, dismantling, and disposal of abandoned RVs. The DOL is allowed to expend up to 15 percent in each fiscal biennium from the account for administrative expenses associated with operating the program.
Sales and Use Taxes.
Retail sales taxes are imposed on retail sales of most articles of tangible personal property, digital products, and some services. A retail sale is a sale to the final consumer or end user of the property, digital product, or service. If retail sales taxes were not collected when the user acquired the property, digital products, or services, then use tax applies to the value of property, digital product, or service when used in this state. The state, all counties, and all cities levy retail sales and use taxes. The state sales and use tax rate is 6.5 percent. State sales and use tax revenues are deposited into the State General Fund.
An additional 0.3 percent sales and use tax on motor vehicle purchases was enacted in 2003. Revenue generated from the 0.3 percent sales and use tax on vehicles is deposited into the Multimodal Transportation Account for transportation purposes.
Rental Car Tax.
Rental cars are subject to an additional 5.9 percent state sales and use tax that is imposed on each rental car contract. Rental cars are also subject to some locally imposed taxes. Proceeds from the state rental car tax are deposited into the Multimodal Transportation Account.
Peer-to-Peer Vehicle Sharing.
Peer-to-peer vehicle sharing is generally described as a transaction in which a privately owned vehicle owner uses a broker or online platform to connect with customers wishing to rent their vehicle. Current law provides regulations around vehicle safety certifications and auto insurance coverage. Personal vehicle sharing is subject to sales and use tax provisions, but not the rental car tax.
Other Taxes and Fees.
Tire Fee.
A $1 per tire fee is imposed on the retail sale of new replacement vehicle tires. Retailers are permitted to retain 10 percent of the fee for costs associated with the proper management of the waste vehicle tires by the retailer. The remaining 90 percent of the fee is paid to the Department of Revenue and may be appropriated to the Department of Ecology (Ecology) for cleanup of unauthorized waste tire piles with a distribution to the Motor Vehicle Fund based on fund balance each biennium.
Driver's License and Identicards.
The DOL issues driver's licenses and identicards that are valid for up to eight years. The fee is $72 for an eight-year driver's license or identicard, and $54 for a six-year driver's license or identicard. An additional $1 fee is imposed on each issuance or renewal of a driver's license or identicard.
Work Zone Safety Cameras.
The Washington State Department of Transportation (WSDOT) is beginning implementation of a speed safety camera in work zone pilot program that ends in fiscal year 2030. The penalty for a speed safety camera system violation is $0 for the first violation and $248 for a second or subsequent violation.
Washington State Ferries.
Ferry Fares.
The Washington State Transportation Commission (WSTC) is required to impose two separate capital surcharges of 25 cents each. The surcharges are required in addition to every one-way and roundtrip fare purchased. The surcharges are deposited into the Capital Vessel Replacement Account and may only be used for the construction or purchase of ferry vessels and to pay for financing of new ferry vessels.
Ferry Vessel Procurement.
Current law requires the WSDOT to contract for the acquisition of up to five new hybrid diesel-electric ferry vessels that can carry up to 144 vehicles. The contract or contracts may employ the following procurement methods: (1) design-build procedure, (2) design-bid-build process, or (3) lease with an option to buy.
Washington State Ferries Biodiesel Fuel:
State agencies must use a minimum of 20 percent biodiesel as compared to total volume of all diesel purchases made by the agencies for the operation of the agencies' diesel-powered vessels, vehicles, and construction equipment. However, the transportation budget directs the Washington State Ferries (WSF) to use a minimum of 5 percent biodiesel for the operation of WSF diesel-powered vessels, as long as the price of a B5 or B10 biodiesel blend does not exceed the price of conventional diesel fuel by 5 percent or more.
Toll Exemptions.
The WSTC has provided a toll exemption for buses, including transit, school buses, and qualifying private buses serving employees or the general public.
State Route 520.
Tolls are currently imposed on State Route (SR) 520. Current law limits collection of the tolls to the floating bridge portion of the corridor.
Transit Project Permits.
Local transit agencies are required to obtain various construction permits as part of the project construction process, including shorelines-related permits. Transit agencies must comply with the State Environmental Policy Act (SEPA) process to determine environmental impacts of a proposed project—or the National Environmental Policy Act (NEPA), if federally funded.
Washington State Department of Transportation Project Permits.
The WSDOT is required to obtain various permits as part of the project construction process. Some example permits include shorelines-related permits, hydraulic permits, asbestos-abatement permits, and various environmental permits related to highway culvert projects involving multiple agencies and state and federal regulations. Under certain circumstances, WSDOT maintenance, repair, and replacement construction work is exempt from specified shorelines-related permit requirements, if the WSDOT provides written notification to agencies with jurisdiction, agencies with facilities or services that may be impacted, and adjacent property owners. The WSDOT must also comply with the SEPA process to determine environmental impacts of a proposed project—or NEPA, if federally funded.
County Road Administration Board.
The County Road Administration Board (CRAB) is a state agency, composed of county officials, established to support counties with funding for county road construction projects. The primary source of CRAB grant funding comes from accounts supported with a portion of state fuel tax distributions.
Active Transportation Grants.
The WSDOT administers several active transportation grant programs, including the Sandy Williams Connecting Communities program to provide safe and continuous routes for active transportation users and a bicycle safety education grant program, and the School-Based Bicycle Education grant program to develop skills and street safety knowledge in primary and secondary education students.
Climate Commitment Act Transportation Accounts.
In 2021 the Legislature passed Engrossed Second Substitute Senate Bill 5126, the Climate Commitment Act (CCA), which directed Ecology to implement a cap and invest program to reduce greenhouse gas emissions consistent with the statewide statutory emissions limits. Certain revenue amounts generated from auction sales under the CCA are deposited into a transportation account, the Carbon Emissions Reduction Account (CERA), to fund various activities intended to affect reductions in transportation sector carbon emissions. In 2022 the Legislature created two new accounts to receive specified annual transfers from the CERA to support both active transportation and transit grant programs, the Climate Active Transportation Account and the Climate Transit Programs Account.
Zero-Emission Vehicle Tax Incentives.
The electric vehicle (EV) battery and infrastructure retail sales and use tax exemption was extended in 2019 to apply to batteries sold as a component of an electric bus and to the sale of zero-emission buses. This tax exemption expires July 1, 2025.
Alternative Fuel Grant and Education Programs.
The Washington State University (WSU) Extension Energy program administers a technical assistance and education program focused on the use of alternative fuel vehicles. Education and assistance may be provided to public agencies, including local governments and other state political subdivisions.
The WSDOT administers the Zero-Emissions Vehicle Infrastructure Partnerships (ZEVIP) Grant Program, which provides funding for the installation of new and upgraded EV charging equipment and hydrogen fueling infrastructure along priority corridors. Priority corridors include only state routes.
The WSDOT also administers the Zero-Emissions Access Grant Program (ZAP), which provides grant funding for zero-emissions carshare pilot programs in underserved and low- to moderate-income communities that have limited access to public transportation or are in areas where emissions exceed state or federal standards.
These programs are subject to legislative appropriation through the 2023-2025 fiscal biennium only.
Fuel Conversion Activity Reporting.
Agencies that receive funding from CCA revenue must report information to Ecology to assist Ecology in reporting on the use of CCA funding and its impact on reductions in greenhouse gas emissions. In the 2023-25 Transportation Budget, agencies that receive funding from the CERA were required to cooperate with the Joint Transportation Committee (JTC) as the JTC developed a tool for tracking the use of CCA revenue for fuel conversion activities.
Complete Streets.
Complete Streets is a set of principles to improve the safety, mobility, and accessibility of state highways with facilities that provide street access with all users in mind, including pedestrians, bicyclists, and public transportation users. The dollar threshold for projects requiring Complete Streets designs is $500,000.
Traffic Safety Commission and Cooper Jones Active Transportation Safety Council.
In 2020 the Traffic Safety Commission (Commission) was directed by statute to convene the Cooper Jones Active Transportation Safety Council (Council). The Council was established for the purpose of reviewing and analyzing data and programs related to fatalities and serious injuries involving pedestrians, bicyclists, and other non-motorists. The work of the Council is intended to identify ways to improve the transportation system and identify patterns in the fatalities and serious injuries. The Council is comprised of stakeholders who have a unique interest or expertise in the safety of pedestrians, bicyclists, and other non-motorists, and may also invite other representatives of stakeholder groups to participate in the Council as it deems appropriate.
Shared Streets.
Cities may designate any non-arterial highway that is not a state highway to be a shared street. Non-arterial state highways that are the primary roads through a central business district may be designated as shared streets. A shared street is a city street where pedestrians, bicyclists, and vehicular traffic share a portion or all of the same street. Cities may establish a maximum speed limit of 10 miles per hour on a shared street.
Local Automated Traffic Safety Cameras.
Local automated traffic safety cameras may be used to detect a variety of moving violations, including on public transportation vehicle-mounted systems operated by a transit authority within a county with more than 1.5 million in population to detect bus stop zone violations.
Public transportation vehicles utilizing a vehicle-mounted system must post a sign on the rear of the vehicle indicating that the vehicle is equipped with a traffic safety camera to enforce bus stop zone violations. Transit authorities must provide to the appropriate local jurisdiction that has authorized a public transportation vehicle-mounted system any images or evidence collected establishing that a violation of stopping, standing, or parking in a bus stop zone has occurred for infraction processing purposes.
Public Transportation Benefit Areas.
Public transportation benefit areas (PTBAs) are the most common type of local transit district, established at the county level and governed by up to nine elected officials selected by the legislative bodies of the county and the component cities—if multicounty, up to 15 elected officials. Public transportation benefit area boundaries may be less than countywide or full countywide.
Marine Pilotage.
The Board of Pilotage Commissioners (Board) is a state agency tasked with regulating marine pilotage services in Washington State. Among its duties, the Board is required to submit annual reports to the Governor and Legislature regarding various aspects of current marine pilotage services in the state. In recent years, the transportation budget has required the Board to include in the annual report updates on efforts to increase diversity of pilots, trainees, and applicants, including a diversity action plan.
Vessels not exempted from state pilotage requirements that operate in waters of the Puget Sound Pilotage District or the Grays Harbor Pilotage District are subject to compulsory pilotage and must be piloted by a person authorized to pilot on waters in these districts. An exemption is granted from state pilotage requirements for vessels inbound or outbound from Canadian ports in certain designated areas if a pilot is licensed by the Pacific Pilotage Authority, the pilot licensing authority for the Western District of Canada, and if the vessel meets communication and navigational chart requirements. Oil tankers of 5,000 gross tons or greater are ineligible for this exemption.
Transportation Innovative Partnership Program.
The Transportation Innovative Partnership (TIP) Program provides a framework for project delivery through public-private partnerships (P3s). The intent of the TIP Program is to provide a more desirable and effective approach to developing transportation projects in partnership with the private sector by applying lessons learned from other states and from the state's 10-year experience with the previously enacted Public-Private Partnership Program.
In 2023 the Legislature directed the JTC to convene a work group to study and recommend a new statutory framework for the TIP Program. The work group was required to submit a preliminary report and any draft legislation recommendations by the end of 2023, along with a final report and draft legislation recommendations by July 1, 2024.
Fencing Along Rail Right-of-Way.
Under current law, all entities controlling or managing a railroad outside city limits must construct and maintain a substantial fence along each side of the railroad along the line of right-of-way, as well as safe and sufficient crossings, including a sufficient cattle guard, where the railroad crosses a highway.
License Plate Production.
During the past five years, the DOL has experienced license plate shortages due to license plate production issues. To address increasing license plate shortages, some license plate production has been contracted with third-party vendors. In September 2024 a temporary transition of all license plate types to flat, non-embossed plates was initiated.
Aeronautics Account.
Revenues generated from the state aircraft fuel excise tax are deposited into the state Aeronautics Account. Appropriations from the account have been for aviation-related purposes, primarily for local airport improvement grants.
Essential Public Facilities.
Under the Growth Management Act, comprehensive plans of cities and counties must include a process for identifying and siting essential public facilities. Essential public facilities are those facilities that are typically difficult to site, such as airports, correctional facilities, regional transit authority facilities, and solid waste handling facilities. Cities and counties may not preclude the siting of essential public facilities.
City Streets as Part of State Highways.
Under current law, certain highway operations costs of city streets that are also state highways is the obligation of the local jurisdiction, except in cities and towns with a population of 30,000 or less, in which case those costs are the obligation of the WSDOT. Beginning July 1, 2028, that population threshold increases to 32,500.
Solicited Real Estate Transactions.
For real estate transactions that are executed on or after January 1, 2026, in which a property owner is solicited for the purchase of their property through public advertising or written, electronic, or in-person contact, and the property is not currently available or listed on the real estate market, the property owner has certain rights. The property owner has the right to: (1) an appraisal by a licensed appraiser; (2) receive notice from the potential buyer of the property owner's right to an appraisal; and (3) cancel the purchase contract without penalty or further obligation under certain conditions.
Registered Tow Truck Operators.
Registered tow truck operators (RTTOs) may impound, transport, and store unauthorized vehicles and dispose of abandoned vehicles. An RTTO who has a valid and signed impoundment authorization is determined to have a lien upon the impounded vehicle for services provided in the towing and storage of the vehicle, unless the impoundment is determined to have been invalid.
When an unauthorized vehicle is impounded, the RTTO must send an impound notice to the legal owner within 24 hours, based on information received from law enforcement. After being held for 120 consecutive hours, a vehicle is considered abandoned and the RTTO must file an abandoned vehicle report with the DOL. If the vehicle remains unclaimed, the RTTO must conduct a sale at public auction.
Vehicles may be redeemed by their legal owners any time before the start of the auction upon payment of towing and storage charges. All surplus moneys derived from the auction after satisfaction of the RTTO's lien are deposited into the State Motor Vehicle Fund. If the DOL subsequently receives a valid claim from the registered vehicle owner of record within one year from the date of the auction, the surplus moneys must be remitted to the owner.
Motor Vehicle Fuel Tax and Related Fees.
Fuel Taxes.
Beginning July 1, 2025, the fuel tax rate for motor vehicle fuel (which includes gasoline) and special fuel (which includes diesel fuel) is increased by 6 cents per gallon, from 49.4 cents to 55.4 cents per gallon. In addition, the fuel tax rate for special fuel is increased 3 cents per gallon beginning July 1, 2025, and by an additional 3 cents per gallon beginning July 1, 2027.
Fuel tax rates, except for the special fuel differential rates, are increased by an inflation adjustment factor of 2 percent each year beginning July 1, 2026. The special fuel differential rate is increased by an inflation adjustment factor of 2 percent each year beginning begins July 1, 2028.
Revenue generated from these fuel tax rate increases is distributed to the Motor Vehicle Fund, except that 2.5 percent is distributed to incorporated cities, and 2.5 percent is distributed to counties.
Vehicle-Related Fees.
License Fees by Weight.
Both statutory fee schedules for trucks are modified for trucks. The total weight fee for trucks up to 4,000 lbs remains at $53 plus the additional $10 weight fee. For each 2,000 lb increment above 4,000 lbs, the graduated schedule weight fee is increased such that the total of the graduated schedule weight fee, the freight project fee, and the $10 additional weight fee is equal to $30 per ton. The change is effective January 1, 2026. The graduated schedule weight fee is indexed to inflation beginning July 1, 2026.
Passenger Vehicle Weight Fees.
Passenger vehicle weight fees are increased as of January 1, 2026, as follows:
Provisions are removed that cannot apply, since Ecology has been provided with explicit legislative authorization to engage in rulemaking regarding a clean fuel standard since they were enacted.
Registration and Title Service and Filing Fees.
For transactions occurring or due on or after January 1, 2026, the service fee for changes in a vehicle or vessel title certificate, changes in ownership for non-titled vehicles, and related transactions is increased from $15 to $18. For transactions occurring or due on or after January 1, 2026, the service fee for a vehicle or vessel registration renewal, issuing a transit permit, accepting a report of sale, or accepting a transitional ownership record is increased from $8 to $11.
For transactions occurring or due on or after January 1, 2026, the filing fee for a vehicle or vessel certificate of title is increased from $5.50 to $6.50. For transactions occurring or due on or after January 1, 2026, the filing fee for a vehicle or vessel registration, report of sale, transitional ownership record, or farm vehicle reduced gross weight license is increased from $4.50 to $6.00.
Abandoned Recreational Vehicle Disposal Fee.
The Abandoned RV fee is increased from $6 to $8, effective January 1, 2026, and will apply to vehicle registrations that are due or become due after January 1, 2026. The administrative allocation provided to the DOL is modified from up to 15 percent to up to 10 percent of the proceeds, effective January 1, 2026.
Vehicle, Vessel, and Aircraft Taxes.
Sales and Use Taxes on Motor Vehicles.
The additional state retail sales and use tax rate that applies to motor vehicle transactions or acquisitions is increased from 0.3 percent to 0.5 percent, bringing the total state retail sales and use tax rate that applies to motor vehicles to 7 percent, effective January 1, 2026. Proceeds from 0.5 percentage points of the rate are deposited into the Multimodal Transportation Account.
Rental Car Tax.
Beginning January 1, 2026, through December 31, 2026, the additional rental car 5.9 percent state sales and use tax is increased to 11.9 percent. Beginning on January 1, 2027, the additional rental car state sales and use tax rate is set at 9.9 percent. Proceeds are deposited into the Multimodal Transportation Account.
Peer-to-Peer Vehicle Sharing.
Beginning on January 1, 2027, the additional state sales and use tax rate is set at 9.9 percent on peer-to-peer vehicle sharing transactions involving a vehicle where the vehicle owner obtained the shared vehicle without paying retail sales or use tax. The revenue from the imposition of the peer-to-peer vehicle sharing transactions is deposited into the Multimodal Transportation Account.
Recreational Vessels Tax.
Beginning on April 1, 2026, a new sales and use tax is imposed on recreational vessels. Proceeds from the tax are deposited into the Multimodal Transportation Account.
Luxury Vehicle Tax.
Beginning on January 1, 2026, a new 8 percent tax is imposed on the retail sale, lease, or transfer of a non-commercial motor vehicle that exceeds $100,000 in price. The tax applies to the portion of the price of the vehicle that exceeds a deduction amount of $100,000 in fiscal year 2026. At the start of each fiscal year the deduction amount is increased by 2 percent.
The value of a trade-in vehicle may not be deducted from the vehicle price in determining the tax. The new taxes do not apply to commercial vehicles, as defined in federal law, or to motor vehicles that have a gross weight rating exceeding 10,000 lbs, other than motor homes. Vehicle dealers and other retailers of motor vehicles are subject to the trust fund liability requirements that apply to other retail sales taxes. Proceeds are deposited into the Multimodal Transportation Account.
Luxury Non-commercial Aircraft Tax.
Beginning April 1, 2026, an additional 10 percent luxury aircraft tax applies to the value of a sale, lease, or transfer of a non-commercial aircraft exceeding $500,000. The new luxury tax applies only to the amount of the sale, lease, or transfer value exceeding $500,000 and treats the $500,000 as a deduction. The value of a trade-in aircraft may not be deducted from the vehicle price in determining the tax. Retailers of aircraft are subject to the trust fund liability requirements that apply to other retail sales taxes. The revenue from the luxury aircraft tax will be deposited into the Sustainable Aviation Fuel Account if Engrossed Substitute House Bill 2061 is enacted by June 30, 2025; otherwise, it is deposited into the Aeronautics Account.
Other Taxes and Fees.
Tire Fee.
Beginning January 1, 2026, the $1 per tire fee is increased to $5. The amount allowed to be retained by tire retailers is increased to 25 cents per tire. The distribution of the tire fee revenue is modified so that the first $600,000 each fiscal year is deposited into the Waste Tire Removal Account and all remaining amounts from the tire fee are deposited into the Motor Vehicle Fund.
Large Event Transportation Assessment.
Beginning April 1, 2026, events occurring at a large event facility are subject to a large event facility transportation assessment to be applied to events not already contracted with the event venue or producer as of December 31, 2025. This assessment applies to facilities specifically designed to accommodate or seat at least 17,000 attendees per event day. The assessment is the legal obligation of the large event facility operator, but may be separately listed for informational purposes on a customer ticket or billing documents.
The amount of the assessment is $1 per attendee of the sports contest, concert, or similar activity at a large event facility. The assessment does not apply to area fairs, county fairs, community fairs, youth shows and fairs, or any state fair. The revenue from the large event facility transportation assessment is deposited into the Multimodal Transportation Account.
Driver's License and Identicards.
Beginning October 1, 2026, the fee for an eight-year driver's license or identicard is increased from $72 to $80. The fee for a six-year driver's license or identicard is increased from $54 to $60. Beginning July 1, 2028, and every three years thereafter, the per year fee amounts are increased by $1 per year.
Work Zone Safety Cameras.
Beginning July 1, 2026, the first violation penalty for a work zone speed safety camera system violation is changed from $0 to $125. Second or subsequent violation amounts remain unchanged. The violation revenue is deposited into the Highway Safety Account.
Washington State Ferries.
Ferry Surcharges.
The WSTC must impose an additional 50-cent surcharge for constructing, purchasing, and financing new ferries. The change is effective October 1, 2025, and applies to the new fares and pricing policies that become effective in October 2025. The WSTC must raise the surcharge 10 cents in October of 2027 and 10 cents in October of 2029. Outdated references to 144-car ferries are removed and both capital vessel surcharges are statutorily directed into the Capital Vessel Replacement Account.
The WSF must implement cost recovery surcharge to recoup at least 3 percent in credit card and other financial transaction costs related to the collection of ferry fares. The WSF must notify customers of the surcharge at the point-of-sale and itemize the fee on customer receipts.
Ferry Vessel Procurement.
State ferry procurement law is modified to allow for additional vessels and vessel vehicle capacity.
Washington State Ferries Biodiesel Fuel.
B5 diesel fuel is required for WSF vessels, and the WSF must develop internal processes to transition diesel vessels in the fleet to the highest possible biofuel blend or renewable diesel by 2030.
Toll Exemptions.
The WSTC is prohibited from exempting publicly or privately owned or operated transit buses, vans, and ride share vehicles from tolling requirements on bridges and must modify tolling provisions accordingly by October 1, 2025. However, public and private school buses may be exempted.
State Route 520.
The imposition of tolls is authorized on the entire SR 520 corridor, instead of the floating bridge only, including on-ramps and off-ramps.
Washington Department of Transportation Project Permits.
The project notification requirement regarding shorelines-related project permits is removed. Asbestos inspections are included in the scope of construction contracts in lieu of the WSDOT conducting inspections prior to bids.
Essential Public Facilities.
High-capacity transportation system improvements and bus rapid transit routes and stops or improvements to these routes and stops are included in the definition of essential public facilities under the Growth Management Act. Cities and counties may not preclude the siting of high-capacity transportation system improvements by imposing conditions or costs that are not reasonably necessary to mitigate adverse impacts directly caused by the improvements, or impose a permit process too costly or time consuming to reasonably comply.
Transit Project Permits.
Transit agency, SEPA, and NEPA documents regarding transit projects must serve as the sole applicable environmental review documents rather than local governments conducting separate environmental reviews. Transit agencies are exempt from the requirement to obtain certain shorelines-related permits when conducting work within WSDOT right-of-way—similar to WSDOT exemptions.
County Road Administration Board.
A new County Local Road Grant Program is established to be administered by the CRAB to provide funds for projects not currently eligible for other CRAB funding.
Active Transportation Grant Programs.
The Sandy Williams Connecting Communities Program Account is created, requiring quarterly transfers totaling $12.5 million annually from the Multimodal Transportation Account. A number of programmatic revisions are made to the School-Based Bicycle Education Grant Program based on current implementation.
Climate Commitment Act Transportation Accounts.
The Climate Active Transportation Account and the Climate Transit Programs Account are repealed.
Zero-Emission Vehicle Tax Incentives.
A tax exemption from sales and use taxes for zero-emission buses purchased by a transit agency or a federally recognized Indian tribe to provide public transportation services takes effect July 1, 2025.
The State Treasurer is required to transfer on a quarterly basis from the CERA to the State General Fund an amount equal to the amount that would otherwise have been deposited into the State General Fund for the quarter if not for the zero-emission transit bus tax exemption.
The zero-emission transit bus tax exemption after the last day of the calendar month immediately following the month the DOL determines that the total amount of exemptions issued reaches or exceeds $14 million.
Zero-Emissions Vehicle Infrastructure Partnerships Grant Program, and Zero-Emissions Access Grant Program Funding.
The respective biennial expirations are removed for funding the WSU's Extension Energy Program's technical assistance education program, as well as WSDOT 's ZEVIP and ZAP grant programs.
Fuel Conversion Activity Reporting.
State agencies that receive funding in a transportation appropriations act for fuel conversion activities must report information to estimate emissions reductions resulting from these activities through the reporting tool developed by the JTC. "Fuel conversion" is defined as the purchase of zero-emission or hybrid electric vehicles, vessels, or offroad equipment, and the charging or refueling infrastructure needed to support them.
Complete Streets.
The dollar threshold for projects requiring complete streets designs is increased from $500,000 to $1 million, starting August 1, 2025.
Traffic Safety and Tribal Representation.
The Cooper Jones Active Transportation Safety Council may include a representative from a tribal government.
Shared Streets.
"Central business district" is defined for the purposes of "shared street" designation eligibility and local authorities are required to consult with the WSDOT to obtain its approval to establish a shared street on a state highway.
Local Automated Traffic Safety Cameras.
Authorization is augmented for bus-mounted traffic safety cameras to allow them to be used to detect public transportation only lane violations. An internal reference is corrected related to transit authorities using bus-mounted traffic safety cameras to detect bus stop zone violations regarding providing the appropriate local jurisdiction images or evidence collected for infraction processing purposes.
Public Transportation Benefit Areas.
A public transportation benefit area (PTBA) may, pursuant to an interlocal agreement, annex an adjacent city operating a transit system within the county in which the public transportation benefit area is located. A county legislative authority may then expand the PTBA's boundaries, after such an annexation occurs.
Any PTBA that is not fully in compliance with statutory requirements regarding proportional board representation by October 1, 2025, may not receive regional mobility grants, rural mobility grants, green transportation capital grants, bus and bus facility grants, transit support grants, or paratransit and special needs grants.
Board of Pilotage Commissioners.
The annual reporting requirements of the Board are amended to include updates on efforts to increase diversity of pilots, trainees, and applicants.
Oil tankers of 5,000 gross tons or greater are exempt from state pilotage requirements when inbound or outbound from Canadian ports in certain designated areas if a pilot is licensed by the Pacific Pilotage Authority, the pilot licensing authority for the Western District of Canada, and if the vessel meets communication and navigational chart requirements.
Transportation Innovative Partnership Program.
The entirety of the TIP Program is repealed, with certain provisions modified or fully retained as part of a newly created statutory framework for the implementation of P3s for transportation projects.
Fencing Along Rail Right-of-Way.
The WSDOT is exempt from the requirement to install fencing along rail right-of-way.
License Plate Production.
The DOL is directed to adopt rules establishing extensions of the expiration date for DOL temporary license plates in cases of shortages of permanent license plates. Specific actions that the DOL and the Department of Corrections must take are provided when there is a projected license plate shortage statewide or in particular locations.
Aeronautics Account.
Expenditures from the Aeronautics Account are limited to aviation-related purposes, and the account is made an appropriated account.
City Streets as Part of State Highways.
The population threshold for small cities and towns with state routes in their areas increasing from 30,000 to 32,500 is advanced to July 1, 2025, under which the WSDOT is responsible for certain highway operations costs of those state routes. This modification only applies only to cities and towns with a population of 30,000 or less on January 1, 2025.
Solicited Real Estate Transactions.
A property owner's right to an appraisal and to cancel a purchase contract in the case of solicited real estate transactions do not apply to any public entity, including but not limited to, the WSDOT, cities, and counties, acquiring real property for transportation purposes.
Payments to Registered Tow Truck Operators for Certain Costs.
The DOL must create a program to compensate RTTOs for the cost of towing, storage, and other services incurred by an RTTO for the towing of vehicles of indigent persons in certain circumstances. The DOL must provide a form to RTTOs on which an individual seeking the release of the vehicle self-certifies that they are eligible under the program, and the RTTO self-certifies that the impound is eligible under the program.
Once the form is completed by the RTTO, the RTTO must release the vehicle to the applicant and no longer has a lien or deficiency claim on the vehicle. Following submission of the form by the RTTO, and subject to the availability of funds appropriated for the purpose, the DOL is required to disburse funds to the eligible RTTO in an amount equal to the cost of the tow, storage, or other services incurred by the RTTO during the course of the private property impound or law enforcement-directed impound.
The DOL must consult with appropriate stakeholders to develop rules establishing maximum rates of reimbursement for towing, storage, and other services. Available funds are the surplus auction proceeds that are no longer subject to a valid claim. Any request for payment is not an entitlement. If funds do not exist to reimburse claims that have been submitted by RTTOs under this new provision, the DOL must create a waitlist for claims.
The amended bill makes changes to the underlying bill in the following areas: fuel taxes; electric vehicle fees; peer-to-peer vehicle sharing sales and use taxes; the luxury vehicle tax; the luxury motor home tax; the luxury recreational vessel tax; the luxury non-commercial aircraft tax; recreational vessel sales and use taxes; motor vehicle sales and use taxes; gross vehicle weight fees; passenger vehicle weight fees; the electric bicycle surcharge; the tire fee; the large event transportation assessment; driver's license and identicard fees; abandoned recreational vehicles; work zone safety cameras; traffic infractions; the ferry credit card surcharge; the ferry capital vessel surcharge; public transit vehicle registration; the Washington State Transportation Commission; Tacoma Narrows bridge tolling; local automated traffic safety cameras; alternative fuel grant and education programs; ferry vessel procurement; marine pilotage exemptions; WSDOT project permits; ferry fares; public transportation grants; WSF biodiesel fuel; expired vehicle registrations and tabs enforcement; P3 projects; tax increment financing; Regional Transit Authority bonds; PTBAs; the SEPA exemption for certain trail development; tow truck impounds; shared streets; solicited property transactions for transportation purposes; Cooper Jones Active Transportation Council and tribal representation; zero-emission transit bus sales and use tax exemption; and CCA fuel conversion activity reporting.
(In support) This striking amendment uses a broad-based approach to generate revenue for infrastructure investments. Increasing the gas tax is the most efficient way to raise funds. These funds are protected by the Eighteenth Amendment. Construction spending has a positive multiplier effect on the economy. But approaches that require electric vehicles and higher mile per gallon fuel economy vehicles to fairly contribute are missing from the striking amendment.
The striking amendment recognizes that the needs the state faces in transportation are great, including related to public safety, the environment, and highway preservation and maintenance. Roads need to be maintained and bridges need to be fixed. The striking amendment consists of a balanced approach that does not focus on creating new programs and that will generate revenue to keep projects on track.
The striking amendment also identifies the importance of maintaining both the state and local components of Washington's transportation system. It reflects a more balanced approach to future maintenance and preservation needs of the state. It has been close to 30 years since a new grant program was established in the CRAB. This program will allow counties to invest in assets that they have not been able to invest in in many years and will make county roads safer.
If the electric bicycle tax had been included, it would have generated relatively few dollars. There are climate benefits and cost savings to the transportation system when electric bicycles are used to replace vehicle trips.
(Opposed) Washington is one of the most expensive states for fuel. The public is tired and stretched thin. Now is not the time to place more strain on them. The current cost of living is putting economic pressure on young people. Increasing the fuel tax rate creates more inflation, since fuel costs are one of the biggest drivers of it. The cost of fuel is passed on into the costs of everything. This is a regressive tax.
Increasing the fuel tax is about an addiction to taxes that should not continue. The tidal wave of taxes is overwhelming. A tax on expensive vehicles was imposed in the early 1990s and repealed two years later because fewer people were purchasing these types of vehicles. The impacts it will have on people is being underestimated.
The fuel tax indexing provision of the striking amendment breaks the links between the fuel tax rate and revenue generation and the transportation budget. Decision making for the fuel tax rate should not be placed on autopilot, but should remain in legislative control.
Luxury taxes and privilege taxes have never worked. Aircraft are mobile and can be moved to another state. There is no known definition of "non-commercial aircraft." Any aircraft can be used for any purpose. This tax will result in devastating harms to the aviation industry and will reduce aircraft purchases.
Business aircraft are not luxury items—they are a legitimate use of a business asset. They are used by large, medium, and small businesses, and their use allows cities and rural areas to compete in the aviation market. This tax will also increase costs to students who want to have good, safe careers in aviation.
The large event fee seems like double taxation. Venues already pay admission and parking taxes. It will be difficult to administer and will have an adverse impact on baseball home games. The large event fee represents a 10 percent tax on $10 tickets for some games. It also ignores the strong economic impact that games have on the region.
Peer-to-peer car rental companies should be taxed the same as rental car companies. The Senate language to address the inequity in the car rental industry is preferred. The House striking amendment would not bring in revenue from peer-to-peer vehicle rentals. The underlying language in the Senate bill would provide parity.
The exemption from SEPA for the development of certain trails and paths is bad policy and would set a bad precedent. It comes from House Bill 1814 and is for a single project in a single location. It will not benefit Washington overall, and will put a number of establishments out of business in Ballard.
(Other) This striking amendment does not do enough to maintain the state's transportation system. The striking amendment only gets halfway to the needed funding level. There is too little that goes to support highway preservation improvements in it. The eventual cost of repair to the highway system will be much higher as a result. The Legislature needs to focus on state necessities. Roads such as U.S. Highway 12 need to be improved.
There is an opportunity to establish a new weight fee category for motorcycles, so that they are not grouped with all vehicles under 4,000 lbs. The weight fee for motorcycles should be reduced by $10.
Charging transit agencies for tolls misses the reality that more buses are needed. Tolling transit agencies takes carbon capture money and uses it for an account for highway projects. Transit agencies need more help, not less. Increasing fees on ferries will have a similar impact on people who cannot afford to pay increased costs.
Any car rental companies operating as peer-to-peer rental companies should be treated the same as rental car companies. Car rental companies do not have to pay a sales tax. Peer-to-peer vehicle owners do need to pay sales tax on vehicles. Turo does not purchase fleets or own any of the vehicles on its platform.
Electric bicycles should not be taxed. They are used for commuting and for day-to-day activities, allowing those who use them to save money on gas and vehicle maintenance. The tax could destroy Washington's ability to lead in the EV industry.
(In support) Jerry VanderWood, AGC; Van Collins, American Council of Engineering Companies of Washington (ACEC); Vicky Clarke, Washington Bikes; Axel Swanson, Washington State Association of County Engineers; Jane Wall, County Road Administration Board; and Michael Transue, Tacoma Pierce County Chamber and City of Fife.