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Washington state legislators have introduced competing proposals to address a $1 billion shortfall in the state’s transportation budget, including gas tax increases and additional revenue measures.
Key Proposals in the Senate & House Plans
- Senate Proposal:
- 6-cent gas tax increase, indexed 2% annually through 2031.
- Higher registration fees: +$50 for electric vehicles, +$25 for hybrids.
- 10% luxury vehicle tax (on amounts exceeding $100,000).
- New fees: $1 per ticket for large events (20,000+ attendees) and $10 per traffic infraction.
- $125 fine for speeding in work zones.
- 0.3% of state sales tax shifted to transportation funding.
- House Proposal:
- 9-cent gas tax increase, indexed to inflation starting FY 2027.
- Highway use fee replacing road usage charge, based on a vehicle’s fuel efficiency and miles driven.
- Higher ferry fares, vehicle sales taxes, and registration fees.
Washington’s Gas Tax History & Public Reactions
Washington’s current gas tax stands at 49.4 cents per gallon, with federal fuel taxes adding another 18.4 cents per gallon. The last increase was 4.9 cents in 2016.
While some residents support the tax hikes to fund infrastructure and transit improvements, others argue the measures disproportionately impact working-class citizens already struggling with high fuel costs. The debate over balancing funding priorities and economic burden continues as lawmakers refine their proposals.
Public hearings on the budget bills are scheduled in the Senate Transportation Committee on Tuesday at 4 p.m. The House version will undergo committee review in the coming weeks.
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