Gas tax will rise in Washington on July 1

Washington will implement a 6-cent increase to its gasoline tax on July 1, the first hike in nine years, as part of a $3. 2 billion transportation funding package. This increase addresses a projected $1 billion shortfall in the state’s transportation budget, caused by rising construction costs and declining gas tax revenues due to the shift toward electric vehicles. The new tax will raise the gasoline tax rate to 55. 4 cents per gallon, making it the third-highest in the nation.

Diesel taxes will also rise by a total of 9 cents, bringing the rate to 58. 4 cents. The tax hike is expected to generate $1. 4 billion over the next six years for transportation projects. Additional measures in the package include increased vehicle weight fees and a new 8% tax on vehicle sales above $100,000.

Critics argue that the state's Climate Commitment Act has contributed to rising gas prices. The last gas tax increase occurred in 2015, when lawmakers raised the rate by 11. 9 cents as part of the Connecting Washington transportation package.